8 Things you can do right now to prepare to buy a house-

Preparation is key in today's housing market

Buying a home is a huge accomplishment, and an opportunity to put down roots and build equity.

But with national inventory down the housing market has become more competitive. And that's especially true when it comes to mid-priced, affordable houses.

So how do you get ahead in a hot market? the key is PREPARATION ! The sooner you start preparing to buy a house, the easier it'll be to beat the competition.

But even if you're already house hunting, it's not too late to take some of these steps and improve your homebuying prospects.

How to prepare to buy a house if you're in the early stages

1. Check your credit

Once you decide to buy a home, the first thing you'll need to do is check your credit. This involves getting your credit report from each of the three bureaus (Experian, TransUnion, and Equifax), and pulling your credit score.

Your credit determines whether you're eligible for a mortgage, and it influences your mortgage rate. The higher your score, the lower your rate.

Most mortgage programs require a minimum credit score between 580 and 620.

Ideally, you should check your credit at least six to 12 months before applying for a mortgage. This allows time to improve a low personal score, if necessary.

You should also check your report for accuracy and dispute any errors, especially negative errors that decrease your score.

To get your credit file, contact each of the three bureaus separately, or order all three copies from AnnualCreditReport.com. Each year you're entitled to one free report from each of the bureaus.

2. Figure out your DTI

Your debt-to-income (DTI) ratio is the percent of your monthly gross income that goes toward debt repayment. Mortgage lenders use this percentage to gauge affordability.

Typically, lenders prefer a DTI ratio that's no higher than 36% to 43%, depending on the mortgage program.

For example:

• If you have a gross monthly income of $4,000
• Your monthly debt payments (including a future mortgage payment) shouldn't exceed $1,720
• Your DTI is 43% ($1,720 / $4,000 = 0.43)

Some mortgage lenders allow a higher DTI, but only when a borrower has "compensating factors" such as a high credit score or a large cash reserve.

To improve your DTI ratio, pay off as much debt as possible before applying for a mortgage. This includes credit cards, auto loans, student loans, and other loans.

You don't have to be debt-free to purchase a home, but less debt can increase purchasing power.

3. Save money

Today, the majority of mortgage programs require a down payment. This amount ranges from a minimum 3% to 5% for a conventional loan, and a minimum 3.5% for an FHA home loan.

So if you pay $200,000 for a house, you'll need at least $6,000 to $10,000 as a down payment.

A down payment isn't required with a VA loan or a USDA loan.

Keep in mind, too, if you purchase with less than a 20% down payment, you'll likely pay mortgage insurance. This insurance protects your lender in the event of default.

You're also responsible for closing costs  which are roughly 2% to 5% of the loan amount (or $4,000-$10,000 on a $200K loan).

If you're having trouble saving for a down payment, it's possible to use gift funds or down payment assistance to help you qualify.

When applying for a mortgage loan, your lender will ask for copies of your bank statements to confirm you have enough in reserves for your down payment and closing costs.

If you don't have enough cash, some mortgage programs allow borrowers to use gift funds to cover all or a percentage of their mortgage-related expenses.

There are also multiple down payment assistance programs (DPAs) in every state. These offer grants or loans — often, forgivable loans — to qualified homebuyers who need help with their down payments.

So if you need a little extra help with the out-of-pocket costs, DPA is definitely worth looking into.See if you qualify for a home loan. Start here (Mar 20th, 2021)

4. Determine your budget

Before meeting with a mortgage lender, use an online mortgage calculator to estimate affordability.

Once you know what you're likely to afford, you can then estimate how much to save for your down payment and closing costs.

For example, if a calculator says you're likely to afford a $250,000 home, aim to save a minimum $12,500 for your down payment, and perhaps another $5,000 to $7,500 for closing costs.

• Estimated purchase price: $250,000
• 5% down payment (typical for a conventional loan): $12,500
• Estimated closing costs (about 3% of loan amount): $7,500
• Minimum amount to save: $20,000

Mortgage calculators vary. Some estimate your monthly payment based on the home price, down payment amount, interest rate, loan term, and other monthly mortgage expenses like homeowner's insurance and property taxes.

Other calculators, however, estimate affordability using information you provide about your income and current debt payments.

But remember that this is only an estimation. You'll still need to contact a mortgage lender to learn how much you really qualify for.Get a custom loan estimate (Mar 20th, 2021)

How to prepare if you're ready to buy a house now

These are steps everyone can and should take before buying a house.

Here's what to do.

1. Find a real estate agent - And that is where I, Angelica, come in -

When you're buying a house, your real estate agent can be a powerful asset. First and foremost, finding an agent who is willing to listen to you is key. I can help you finding a reputable mortgage Lender and your personal Loan Officer if you are not pre-approved.

My job will be to help you find a home that suits YOUR needs and preferences. That includes flagging listings or open houses for you to check out, and then scheduling showings on your behalf.

As I show you homes and recommend great finds as soon as they come on the market, I will also be providing valuable insights and counseling about the buying process. I understand your anxieties and excitement, and yes, you are entitled to both!

Once you've located your ideal property, I will write the offer for the home you would like to buy, assist with inspections and negotiations, and guide you through the closing process. Essentially, I will serve as your go-to resource for anything related to buying a home. Yes, you can count on me, and this is why I am providing this educational article]]>

It's All About the Money…  

ABSOLUTELY #1 SELLING SECRET – #1: Hiring a Realtor

 ABSOLUTELY #1 SELLING SECRET – yes, #1: Hiring a Realtor .

But why? Consider this if you're contemplating going "FSBO"—for sale by owner—when listing your home. Of course, you want to get as much for your home as possible, and you might think that means not parting with extra commissions. But a 2017 study indicated that FSBOs fetched about 30% less for their owners than agent-listed properties. 

And you're probably going to have to pay a commission anyway if your buyer is represented by an agent. The buyer's agent's commission is typically factored into the deal—although you'll still save on the commission you would otherwise have paid your own agent.  

And why not use an agent if you're the buyer? After all, the seller is paying the commission, not you. Of course, there's always a slim possibility that the seller will refuse to do so, but you can probably move on and look at other properties if it appears that this will be the case, although it can depend on whether you're shopping in a buyers' or sellers' market and who has the upper hand. 

Either way, I, Angelica, can help you attain your investment goals – (904)410-4444

Selling Secret #2: Pricing it right.

With the help of your Realtor you can find out what your home is truly worth, then shave 10 to 15 percent off the price, even up to 20% if you are brave. You'll be stampeded by buyers with multiple bids — even in the worst markets — and they'll bid up the price over what it's worth. It takes real courage and most sellers just don't want to risk it, but it's the single best strategy to sell a home in today's market. Your agent will be able to negotiate in your best interest.

Selling Secret #3: The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It's important to make people feel warm, welcome and safe as they approach the house. Spruce up your home's exterior with inexpensive shrubs and brightly colored flowers. Strategically place a few solar lights on your front yard. You can typically get a 100-percent return on the money you put into your home's curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you're selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.

Selling Secret #4: Half-empty closets
Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what's left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.

Selling Secret #5 Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.

Selling Secret #6: BUT actually #1 –Find the RIGHT Agent
Just for reinforcement, in case number #1 tip did not convince you. Make sure you have an Agent who is well informed. They must constantly updated through the multiple listing service (MLS), know what properties are going on the market and know the comps in your neighborhood. Find a Realtor who embraces technology and has many tools to get your house sold. Hopefully this article will have you convinced that I can help you with your transactions – Angelica (904) 410-4444

Angelica Di Chiara-Hardin , REALTOR

904-410-4444

Selling Secret #7: Conceal the critters
You might think a cuddly dog would warm the hearts of potential buyers, but you'd be wrong. Not everybody is a dog- or cat-lover. Buyers don't want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you're planning an open house, send the critters to a pet hotel for the day.

Selling Secret #8: Don't over-upgrade
Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won't get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, an old and tired looking toilet, make sure closet doors are on track, fix or replace leaky faucets and clean the grout.

Selling Secret #9: Take the home out of your house
One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager or an agent that will proving staging your home for free to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.

Selling Secret #10: The kitchen comes first
You're not actually selling your house, you're selling your kitchen – that's how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you'll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.

Selling Secret #11: Always be ready to show
Your house needs to be "show-ready" at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don't leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It's a little inconvenient, but it will get your house sold.

Before you know it your will have a SOLD sign in front of your house!!