Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about  What is your Debt To Income Ratio (DTI)  When Applying for a Mortgage Loan

When applying  for a new mortgage, your DTI ratio will play an important role to help determine how much you can borrow.

This blog post will help you calculate your own DTI. This will be useful to you as well as to help determine if applying for a new loan is the best idea for your budget. 

DTI is a financial term for debt to income ratio.

Your debt to income ratio is calculated using 2 parts: the front end ratio and the back end ratio.

The front end ratio is the amount of your monthly income that will go towards the mortgage and other housing expenses. It is the amount that is left after your income has gone towards these expenses.

Calculate the front-end ratio by doing the following steps:

Add all your total housing expenses, including your mortgage, property taxes, insurance and any HOA dues, and divide it by your gross monthly income.

Multiply  that number by 100 to find the front-end ratio. 

For example,

The monthly mortgage payment is $1,500 including the taxes and insurance. Your HOA dues are $50 per month 

$1,550divided by your gross monthly income 

the multiply that number by 100  - The total is your front end DTI ratio.

If your number is higher than 28%, you may want to wait until you are below the 28% range & be comfortable with your monthly mortgage payment. 

You should also know that the back end ratio compares what portion of your income is needed to cover all of your monthly debts plus your mortgage payments. 

Steps to calculate your own back end to income ratio"

Add up all the monthly bills you have and then make sure to include any other monthly expenses that you have. For example, monthly rent, loan payments, credit card payments, etc.  This will give you a good idea of your total monthly bills.

Take the total of your bills and divide it by your income before taxes.

Multiply the total by 100 

This is the total of your back end DTI ratio

Ideally, the total should be below 45% 

A DTI ratio above 45% suggests  that you should consider increasing your savings or reducing your spending to maintain this ratio.

It is a very important  process to have a pre-qualification with a lender without getting penalized for a credit pull or paying any fees. 

Speak to your REALTOR® to help you get started with this. A "soft" pull of your credit and information about the maximum that you can qualify for can be done in a matter of a few minutes. 

Use a pre-qualification with a lender when you are just starting  in the process of buying your home. 

It should be free and use it as your plan to put you in position to buy a home in the next few months

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed.  

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about How To put a Winning Offer To Buy Your Next Home?  

It is time to reveal my secrets as to how we put a winning offer for our clients

As a homebuyer, the more you look at properties the more you are likely to come across a property that you want to purchase. 

As soon as you find "the"  property that you really want to purchase, it's time for your agent to prepare you on putting an offer in.

The number one step we follow when we are working with a client is simply, find out if the property still available.

Another question for the listing agent to find out is the number of offers already registered with the particular listing 

Another question that needs to be answered is if the sellers are still accepting offers. 

The most important question where we base our strategy to advise our clients is   "how many offers do they have on hand?" 

The answer to this question will determine the strategy of your offer.

When the seller has received your offer they will include a pre-approval letter that is typically based on your application to your lender and any contingencies you may want to include inside your offer.

Contingencies are necessary to make sure that the buyer is not taking a risk with the purchase of a property that they have not inspected, appraised for value, financing approval completed or any particular reason that may cost you a lot of money when purchasing the property. 

Contingencies are there to protect you as the buyer. 

Along the offer, the EMD (Earnest Money Deposit) is necessary for your offer to be considered. 

Your agent will work with you to determine overall the best strategy for your offer. 

If the seller rejects your offer, you can either walk away at this point and get your deposit money back, accept a counter offer, or make a counter offer of your own.

Just remember,

If you are looking to buy a home, a good agent will help you put in a competitive offer so that you don’t have to worry about losing the house of your choice. 

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about 3 TIPS: Preparing Your House To Sell In The Summer

Summer is a great time to sell your home. The weather is warmer, and buyers are more inclined to spend time in the sun. This is a good time to make your home more attractive to potential buyers starting from the outside.

When people are looking for a home in hot weather, It means that people will be looking for houses to buy no matter what. While others are taking vacations and relaxing at the beach, serious buyers are hard at work looking for the right home to purchase. People who are  looking for home is the Summer are more likely to be serious buyers 

To prepare your home to sell, add these three strategies to ensure your property is discovered in a crowded, frantic hot market.

3 TIPS  Preparing Your House To Sell In The Summer

#1  Exterior Showcasing of your house. - How to Get the Best Results

If you are looking to sell your home during the busy summer selling season, you should take time to spruce up the outside of your home.

Curb appeal counts and during the hot summer months, the greenery combined with flowers makes a great impression on home buyers. 

#2 Invest Time & Money Creating The Best  Curb Appeal For Your House

From the moment the prospective buyers drive up to your property they are judging your home. I've seen personally when buyers don't even bother to come inside because they have already made up their

mind at a first glance. Your front yard, your entrance and every single room or space in a home should be a “wow” of some sort, providing something that is beyond what’s expected to the prospective

buyer. First impressions apply to each and every single room or space in a home as well.

#3  Pricing Your Home to Sell 

Know the facts and study it carefully. The pricing of your home should not be set on hope, automatic computerized CMA's and/or false homeowner illusions. The price of your home should be set by

square foot comparisons, current local market conditions, major improvements or lack of, pending sales, sold comps and the number of similar active listings in the area. 

You need guidance, advice and direction from an experienced professional to set the right price to sell, follow their advice and don't look back.

When selling your home in the summer, you need to ensure it is clean, fresh, comfortable and priced reasonably. 

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about How you can use the appraisal gap to help you buy a house with competing offers? 

What's an Appraisal? 

An appraisal is a valuation of a property by a licensed real estate appraiser. A mortgage lender hires an appraiser for their mortgage application to determine the value of the property

The bank will lend money to the buyer for the purchase of the house, assuming the property is valued at a certain price. The bank will take the house as collateral for the loan.

Mortgage lenders use appraisers to assess what the value of a property… to see if it is worth enough to lend money to buy. 

This helps to safeguard the bank from lending too much money to a property which is not worth the contract price.

You may have different opinions on the value of a property. You can find out how much it is worth by getting different estimates from three different professionals.

An appraiser is someone who determines the current market value of a property by using  recently sold properties to help determine a home's value. Those are called "comparables"

They break down the components of each comparable property sold to arrive at an estimated value of the home.

How do Appraisal Contingencies Work When You're Purchasing a Home?

If the home appraises at a lower value than expected, the buyer and lender can withdraw from the contract. This is a great way to get out of a contract if you do not have the money to buy the property.

Remember, the property must appraise for the value of the purchase price or higher.

What is an Appraisal Gap Clause, and How Does It Work?

The buyer will pay for the gap between the contract price and the appraised value.

If the property appraises for less value, then the purchaser must pay the difference

How you can use the appraisal gap to help you buy a house? 

If you are looking to buy a home, you may want to take advantage of this strategy when you have several competing offers. 

On a  “seller’s market”, homes are in high demand and sellers are eager to unload their properties for the highest price.

Your offer is more valuable to them because it assures them that they could get more money than their house is worth.

A buyer can make an offer with a lower purchase price, but the offer is enticing because of the appraisal gap. 

The buyer does not have to guarantee that they will pay for "ALL" the difference, you can put a "stop gap" of $5,000 for example 

What this allows you to do is getting your offer accepted amongst other offers by enticing the seller's with more money.

Other offers may be higher than yours, but yours gives them a guarantee that they will receive more money if the house's value is less.

When you buy a house, it is best that you talk to an experienced agent to give you the extra edge to get your offer accepted. 

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about Interest Rates are rising – Is this a good time to buy a home?

Everyone knows, overall, home prices have been rising together with interest rates. This has been a moving market, and it is representative of our local economy and national financial trends.

Is this a good time to buy a home?

The answer will always be depending on your current situation. If you are renting, essentially you are paying 100% to your landlord and paying 6% even 7% for a mortgage still a better move for you.

While the mortgage rate has risen, it is still not unreasonable a higher percent interest on your home loan and let me tell you why?

At a recent point in time, several months ago, interest rates were around 3.5% but are now around 5.5%, so the rate has risen much faster than expected. But, at some point, this too shall pass, and the market will stabilize with a tendency to normalcy once again.

The 30 year fixed rate has been below 4 percent. After the pandemic hit, the 30-year fixed rate stayed around the same for a few months. This is because the Federal Reserve has made a big push to keep rates low to avoid a recession. 

Today, the Fed will have to increase them again and hope that our economy will be able to jump over our current economic conditions for more stability on prices.

In the last year, inflation began to rise due to a number of reasons. This pushed the Federal Reserve to begin raising interest rates to stop the inflationary cycle. The Federal Reserve's decision to increase interest rates has led to higher mortgage rates. Just last week, the average interest rate for 30-year, fixed-rate, mortgages with balances of $647,200 or less increased to 5.65 percent from 5.40 percent.

 In some cases, homebuyers may want to look at different housing options such as condos or townhomes to offset high interest rates, but one thing is for certain, the interest rates of a monthly mortgage are always much better than paying 100% or a monthly payment to a landlord

A good real estate agent will help you ask the right questions before buying a home. For example, You may be paying attention to the interest rates when you should be asking yourself"

"How much home should I buy, given all of my short and long-term goals and objectives?"

…and that’s when you need a guidance from a true real estate professional

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about 4 Steps To Prepare Your House To Sell This Summer

If you are looking to sell your house in the summer, you need to start the process well before the season kicks off. This means getting your house ready and getting yourself ready for summer season.

Here are 4 things you can do to make your house sale-ready

#1 Repairing Those Little Things...

Make a list of all the necessary repairs that you can do yourself. It is important to complete these tasks ahead of time as it will allow the potential buyers to focus on the home’s positive qualities instead of being distracted by the work required to bring the home up to standard. These tasks will need to be completed before the listing goes live. Start now, make a list and start taking the small projects first. 

#2 Get Rid of Clutter

Do not underestimate the power of clutter in your home. If you are not using something, get rid of it, do not keep it just because it is there. Clutter can be the cause of much stress and unhappiness, so get rid of it, Your house has to be shown clean, fresh and captivating. 

Remember, 

Your home is a reflection of who you are and should be a place that you feel is a comfortable, relaxing, and a calming place to be in. So, it is important to make sure that your home is clutter-free, as it will reflect the attraction your house commands from buyers. 

#3 Increase the Value of Your Home with Curb Appeal

It is very important to make a good first impression on the buyers of your house. This is because the first thing that they will see is the front of your house and curb appeal is what attracts them in.  

They will be deciding whether they want to go in to see what is inside, or turn around and go to the next house.

This is why it is so important to make the front of your house as attractive as possible.

#4 Do You Need A Reality Check? 

Buyers have a different view of your listing price, I believe that an educated seller makes better decisions around the listing price if they want the best chance of success.  A good real estate agent will  assist you in determining the best listing price for your house with strategy and purpose. Always consult with your favorite agent to get the best results.

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about Passing your family home to the next generation could be very emotional 

What happens to your house after you pass away?  

Here are a couple options you may consider preventing burden in your family.  

It’s important to be pragmatic when deciding what will happen to your home in the future. We don't live forever. There will be a time when you may have to do decisions that are charged emotionally when it comes to your home.

If you have created a nice nest egg around your home, and you have enough equity that makes it possible to leave your estate to the next generation, you should talk to your children first, ask them about their expectations and interests. Discuss what you would like them to do with your assets, how you want them to manage their money, and how you would like them to pass on your wealth to their children.

If you die, your children can inherit your home. There are a number of ways that you can leave your home to your children. Each of these will have implications for them, so you should think about what you want to do and the decisions you should make.

Here are a couple options you may consider:

#1 Selling your house to your children

Parents can sell their home to their children by loaning them money to purchase it. Alternatively, you may want to opt-in for a life estate that allows you to live in the house until you pass away. 

#2 Giving your property to your children 

An irrevocable trust can protect against children’s potential creditors

No matter how you plan to pass your home on to your kids, it is important to consult with your financial and legal advisors to explore your options and related implications. The right course of action can have a huge impact on your kids and their lives.

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about Should You Rely on Real Estate Predictions to Buy or Sell Real Estate?

A conversation with one of my clients made me realize that real estate market predictions are notoriously unreliable. Nobody can predict what is going to happen with 100% accuracy. But we can check out what real estate experts are saying and make some guesses about the future from there.

A housing forecast is a prediction of future housing prices. It is only a rough guide but can be a good starting point for your personal situation and finances.

Know that the local area, business opportunities market growth and local economy have more say about real estate prices in general from a national level.

Some of the most notorious predictions that I’ve personally followed many years ago: 

Both Zillow and CoreLogic published economic models predicting that U.S. home prices would fall by spring 2021. That price drop never came. Instead, the housing market went on a historic run that continues to today.

Our current real estate position is still a seller’s market. This is not good news for homebuyers, as homebuyers will still be competing with the current low inventory as, sellers will be able to sell at a higher price due to less competition.

Another question I heard from many of my clients lately,

Will There be a Foreclosure Crisis in 2022 and beyond?

The number of foreclosures hit a record low in 2019. The number of foreclosures in the US dropped by nearly 30% from the year before.

Compounding to this,

The United States government had a moratorium on foreclosures during the crisis of COVID1 19. Now that the moratorium has been lifted the foreclosures market remain low and quiet.

Why?

“Foreclosures are about the value of the properties being less than what is owed to the lender”

With the record equity gains in the last 2 years, there aren’t many homeowners with equities below of what they owe to the bank.

Why foreclose a property when they can easily sell it (immediately) for more what they owe to their lenders?

I predict,

Take this prediction with a grain of salt,

That the number of foreclosures will be moderate for the rest of 2022 and about the same (as in a normal housing market) in 2023

Then again,

I’ve been wrong before…

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about 3 Ways To Impress Buyers When Selling Your Home

The sale of your home isn’t quite as simple as sticking up a ‘for sale’

sign and waiting for the buyers to come to you. Here is an overview of

3 things you can do to impress homebuyers: 

#1 Impress Them with  Photography 

We live in a fast media heavy, internet driven world. There was a time when incredibly high quality photos were reserved only for luxury million dollar homes. 

Well, this is no longer the case. A great listing photo could sell your house. Your home is just like every other house on the market right now. Most potential buyers will

give your home one look, and that look will be online. 

Every detail you show in your photos is one more reason that buyers will use to differentiate between your house vs your competition. 

You want attention when selling a home and photos are a great way to achieve it.

#2 Impress Them with Videos 

Just like photos, videos are an extra edge I use vs my competition.

Before I put a house in the market, I download a video to YouTube with the address of the house as the title for the video. A few days

later, when you put your house in the market and your listing is picked by all the aggregators like Zillow, Trulia, Realtor.com...Etc. 

Your video will compete strongly on 1st page of Google because it came first.

You want to control what buyers are seeing about your listing and not just to be one of thousands out there with the same canned message.

#3 Impress them with Your Brochure 

You want to control what buyers are seeing about your listing and not just to be one of thousands out there with the same canned message.

This is why I create a very detailed brochure for all my listings. I want to give them reasons why they should choose to buy my house over others.

Marketing is about conveying a message and amplifying your selling points better than your competition...a brochure will give you both.

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540

Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

Today, we'll talk about What are the risks of variable rate mortgages?

With mortgage rates  going up in the first few months of this year, I can understand why home buyers in the next few months would be considering choosing a variable rate mortgage instead of a fixed rate. 

One of the main reasons why anyone would take on  a variable rate is to save money. 

Variable-rate mortgages can change in line with changes in the prime rate, unlike fixed-rate mortgages.

The rates are much lower than a fixed rate mortgage and there are benefits that could be beneficial to some buyers,

But they could also cost you a lot of money if you do not plan it well...

Many people who take out variable rate loans will end up paying a high prepayment penalty if they try to pay off the loan early because their plans changed. 

Most variable rates have an allocated time when the rate does not change. 

This has to be planned carefully, otherwise you may end paying penalty fees. 

I recommend that all first time homebuyers get help from a mortgage broker or their real estate agent  who can help them understand all the short and long-term costs of owning a home and a mortgage.

Bottom line is: 

Most first time homebuyers will need to take out a fixed rate mortgage for a certain amount of time. If you are buying your first home, you should consider a shorter term ( 2 years or 3 years) fixed rate mortgage rather than a 5-year solution.

When you are signing up for a mortgage, it is essential to know that there are interest rate differentials between fixed and variable mortgage programs, depending on which lender you go to and what kind of mortgage you go for.

It is imperative that you speak to your mortgage provider or real estate agent who is representing you, and ask questions about the rules and penalties that you must pay in case that you must move out early. 

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540