Archive for May, 2018

How to Afford the Most House Your Money Can Buy

Wednesday, May 30th, 2018
House your money

Before you begin searching for a new home, you need to know how much house you can afford to buy. Here are a few things to consider to help you prepare yourself for buying a home.

Since you are new to owning a home, you’re probably wondering how much house you can afford to buy? Everyone does. And it’s a great question to ask and get answered because if you get this wrong, you could end up foreclosing on your new home. And who wants that? No one. Certainly not me, and certainly not you. Here’s what you need to know to afford the most house your money can buy.

There is more to the cost of a house than what meets the eye. Long-term costs are there as well and must be calculated to find out how much house your money can buy. You need to fully understand how much a house will cost upfront in order to get into it and how much it will cost to live there month after month.

To Determine How Much House Your Money Can Buy

Have you saved enough for a down payment?

The down payment needs to be at least 10 percent of the price of the home you want to purchase. But the best loan terms are given to homebuyers who have at least 20 percent to give for a down payment. If you’re looking at a $300,000 home, a down payment of 10 percent is $30,000. A down payment of 20 percent is $60,000.

Will the housing costs exceed 28 percent of your monthly income?

In addition to the amount you have for a down payment, lenders look at the cost of housing in comparison to your income. Your monthly mortgage payment, taxes, and home insurance should not exceed 28 percent of your monthly income. If you bring home $5,000 a month, these housing costs should not exceed $1,400.

What is your debt-to-income ratio?

Successful, long-term homeownership depends a lot on a great debt-to-income ratio. Simply stated, this means more savings, less debt. Because the greater the amount in your savings account and the smaller your total debt, the more home buying power you’ll have.

Note, qualifying for a loan and being able to afford that loan are two very different things.

Lenders look at your total debt (credit card debt, car loans, student loans, personal loans, etc). If they see that you earn $5,000 a month gross, they’ll expect that you can afford to pay $1,400 a month on taxes, mortgage, and insurance. But if you don’t have additional debts, they’ll expect that you can afford to pay $1,800 a month on taxes, mortgage, and insurance.

Do you have a good credit history?

Paying your bills on time and paying more than the minimum gives you a good credit history. Get into the habit of paying more than the minimum on time month after month while building your down payment savings before you start looking for a home, and you’ll be off to a terrific start!

With over 30 years of experience in the Brooklyn real estate market, Charles D’Alessandro is a Brooklyn Real Estate Agent you can trust. He’ll help you find and purchase the most house your money can buy and guide you every step of the way. Contact Charles D’Alessandroyour Brooklyn Real Estate Agent with Fillmore Real Estate at (718) 253-9600 ext.206 or email [email protected] for your best start in the homebuying process.


 Charles D’Alessandro

Your Brooklyn Real Estate Agent

718-253-9600 ext. 206

[email protected]

 

10 Useful Closing Checklist Tips After Everything is Out of the House

Tuesday, May 15th, 2018
Closing checklist

Once the house is empty, use these useful closing checklist tips to help you efficiently wrap up the moving process for closing day.

There are certain things every responsible home seller should do once everything is out of the house. It seems the selling process just cannot be completed as needed until your personal belongings and furniture are out. Once the house is empty, these useful closing checklist tips will wrap up the moving process in an efficient way.

Closing Checklist Tips 1 Through 10

Tip #1: Keep It Together

Your escrow officer or closing agent will give you a closing package containing seller disclosures, the purchase contract, and closing statement. Keep them together in a file folder that is easily accessible in a safe place.

Tip #2: Clean It Up

Clean the house yourself or hire a cleaning professional to do it for you. “Clean” can be a relative term. Basically, leave the house in better condition than you would like to find your new home in.

  • Wipe down cabinets, inside and out, and shelves
  • Vacuum the floors
  • Clean kitchen appliances, inside the refrigerator and oven
  • Wipe down kitchen counters
  • Scour sinks, tubs, and toilets
  • Wash flooring
  • Throw away trash
  • Properly dispose of toxic chemicals
  • Sweep the garage floor
  • Stack paint cans, roofing materials, or extra flooring

This is your last opportunity to make a great impression on the buyer. Make a good one and go the extra mile.

Tip #3: Set It Aside

If you don’t already have a place for appliance manuals, receipts, building plans, and warranties, set them aside as you come across them. I’m talking manuals for the HVAC, security system, sprinkler system, contractor receipts for the awnings you added above the front and back doors, and their warranties. Staple the receipts to their manuals and put it all in a file folder. You can leave this file in a drawer or on the kitchen counter for the buyers. They’ll greatly appreciate the thoughtfulness!

Tip #4: Walk Through It

Attend the final walkthrough. There are lots of things about your home that only you as the home seller will know. Traits like how to reset the on-demand hot water heater when the water turns cold while showering. Attending the final walkthrough will give you the opportunity to graciously pass on any quirks or traits to the home buyer.

Tip #5: Turn It Off

Make sure the water shut-off valve to each appliance is completely turned off. Disconnecting the appliances from their water sources is not enough. Even a small but steady drip, can eventually flood a home. Some sellers are extra careful and will shut off water sources valves to sinks, toilets, and dishwashers, too.

Note: Leave a note for the buyers telling them which water source valves have been shut off.

Tip #6: Cancel It

When you know the deed has been recorded or the title transfer has formally taken place, call your insurance agent and cancel your insurance policies. There should be a refund check from a prepaid premium for your homeowner’s insurance due you.

Tip #7: Stop and Cancel It

Stop the newspaper and cancel the utilities. Write a list of your utility companies and their phone numbers, including the newspaper subscription if you have one. And don’t forget about the utilities you pay quarterly.

Tip #8:  Leave It

All of your house keys, remotes, shed keys, mailbox keys, and codes should be left in a kitchen drawer for the buyers. They’ll probably change the locks for safe measure, but you should still leave keys, codes, and remotes.

Tip #9: Run Through It One Last Time

Make a last pass through the house. Check every cabinet, drawer, and storage place for forgotten items. If your spouse, friend, or family member tells you they went through every room with a fine-toothed comb, run through everything one more time. You might find something insignificant, like an empty bottle, but it will give you peace of mind.

When we moved last year, we left the old toboggan that my dad bought for our family for Christmas when I was in 6th grade. We forgot about it up in the rafters of the garage. I loved that thing and the memories we have tied to it. Fortunately for us, the buyer texted us about it, and we were able to retrieve it.

Tip #10: Close It Up

Finally, latch the windows, turn off the lights, and lock the door. Yes, you’d be surprised by how many people forget to close up the house. And this is important. If no one can see inside, the chances of a break-in are less likely.

On the day of closing, you and the buyer will have separate chances to sign the closing documents. Your agent will congratulate you on the close of your escrow and everyone can celebrate.

With over 30 years of experience in the Brooklyn real estate market, Charles is a Brooklyn Real Estate Agent you can trust to sell your home and support you every step of the way in the process. He knows what it takes to get your home sold. Contact Charles D’Alessandroyour Brooklyn Real Estate Agent with Fillmore Real Estate at (718) 253-9600 ext.206 or email [email protected]. for the best closing checklist for your home.


 Charles D’Alessandro

Your Brooklyn Real Estate Agent

718-253-9600 ext. 206

[email protected]