Tag Archives for " Mortgage "

Buyers Information – Buyer Info Sheet Real Estate

The first question is bound to be, “How much home can I afford?”

That depends on a number of factors and here is the real estate agent checklist for buyers:

Your selected location. Are you set on a specific area? Downtown? The suburbs? A rural setting?

Your preferred type of home. Detached? Semi? Duplex? High-rise? Link? Townhouse? New or Resale? There are a variety of home styles you will want to explore.

Your income. After all, it’s not just the mortgage you have to take into account. There are property taxes, utilities, and in some cases condo or strata fees. As a general rule of thumb, your monthly home-carrying cost should not exceed 30-35% of your income.

Market conditions. Is it a buyer’s, sellers or balanced market?

There are also additional costs to keep in mind. It’s a good idea to work out exactly what you want and what you can afford before you begin the search. Be specific! After all, you don’t want to suddenly come to the realization that your dream house has come with a nightmare of bills and expenses. Stick to looking at houses in your price range. The more you’ve thought it out, the better your sales representative can meet your needs.

Start your research early

Once you have decided that you want a new home, start researching the web as soon as possible. Make a list of potential properties and see how long they stay on the market. Also, make sure to record any changes in asking prices. This will provide you an insight into housing trends in a specific area.

How big of a house you can afford

Numerous lenders advise home owners that they shouldn’t spend on the property more than three to five times their annual household income. In this case, you will have to provide 20% down payment to have a moderate amount of other debt.

However, buying a home is an individual matter, and not all have the same budget. Therefore, based on your finances, you need to determine how big of a house you can afford. Many people consult with financial advisors before they make such a huge step

Get prequalified and approved for a loan

Before you start searching for a home, you will need to know how much money you can actually spend. The best way to do that is to get prequalified for a mortgage. In this case, you will be required to provide financial information to your mortgage advisors, such as your income, savings, and investments you may have.

After lender reviews all the data, he will tell you how much money he can lend you. This will show you the price range of your potential property and what you should look at.  Later, when you find a home you want to buy, you can get preapproved for the mortgage.

Hire a real estate agent

The Realtor should be a part of your team, whether you are selling or buying home. He can offer valuable information and advise you which course of action to take. Usually, he has the information that isn’t accessible to the public and will act as inside man.

Their skills and knowledge is something you shouldn’t neglect, considering they are familiar with all the transactions and the latest news. On top of that, a real estate agent earns money only when they sell a property, so it doesn’t cost you anything to hire their services.

Top Three Strategies To Manage Rental Property

If a rental property isn’t handled correctly, then it can become unprofitable business soon enough! However, there are a couple of ways which can help you manage the property, that will match every landlord’s needs.

Sometimes, even all that hard work won’t help you if you don’t know how to utilize your recourses. However, before you select the right strategy, you should be aware of the fact that all different aspects of the rental property are managed separately.

We are going to break down the landlord’s management responsibilities into three sections. It will help you understand better the challenges you will be facing.

Tenants management

The most immediate and the most obvious responsibility of every property manager is the tenants’ management. However, if you want to be a successful landlord, then it involves a lot of duties than just collecting the rent. You will have to handle the following task:

  • Rent collection – due dates, collecting rent every week or month and setting up late fees, and managing the unpaid rent.
  • Lease agreements – following and fulfilling the tenant’s law and making sure that lease is up to date.
  • Moving in and moving out – signing the agreements and covering all the rules and requirements with your tenants.
  • Tenant background check – it’s essential for the safety of other people occupying your rental space.
  • Tenant complaints – setting up plans to fix the issues.
  • Tenant eviction – due to unpaid rent, or to a violation of terms and conditions, at some point you will be obligated to evict tenants. In this case, you need to have all evidence to support your claims.
  • Repair request – as a property manager, you need to respond quickly and efficiently.
  • Property maintenance and inspection

The second part of your rental property management is maintenance and inspection. The physical structure needs to be maintained, to keep the tenants safe and secure. If you have insurance, then the insurance company will request from you have the property fully functional, to meet the specific standards.

  • Maintenance – this involves cutting the grass picking up the leaves, shoveling snow, keep the common areas clean, taking out the garbage, making sure that tenants have running water all the time, and so on. Also, you need to fix the leaks, deal with plumbing, perform repairs, such as broken doors, cracked tiles, and window locks.
  • Inspections – property managers go through various inspections, such as town inspection and insurance company inspection. The town inspection makes sure you are following all the regulations regarding safety and health codes, while insurance one inspects the property to determine the amount they are ensuring it for.

Dealing with finances

The third part of management is dealing with funds. You should have a clear picture of how much money is coming every month and how much is going out. This includes a couple of categories:

  • Rent – how much can you collect each month
  • Mortgage – what you pay each month to the bank
  • Insurance – how much money do you spend to insure your rental property
  • Utilities – if tenants aren’t responsible for the utilities, which is not often the case, how much money you spend on gas, electricity, and water bill.
  • Taxes – consider your annual property tax
  • Fees/fines – sometimes, you will have to pay for property inspection or court costs. Also, you will have to deal with will unexpected penalties as well.