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How Should I Prepare For Internet Showing?
Today, your first “showing” will be on the Internet – you’re watching this on the Internet, right?
Your price, listing description and PHOTOS determine whether someone will visit in person. Consider professional staging advice or help.
Prep for photos and video just as carefully as real visits.
Ask your realtor if they use a professional photographer
If they do look at prior photos and pick someone who understands the job.
Photos should make the most of your home’s features and give prospective buyers an emotional connection that invites them to visit in person.
Help them envision their lifestyle in the house not just the counters and walls.
If your realtor recommends video, just as with photography stage it carefully and hire a professional it will pay off.
And look over your listing when it goes live on a computer AND a mobile device to make sure it’s accurate, pleasant and compels people to show up.
Remember – your first showing these days will be on a screen.
What Is RESPA?
RESPA stands for the Federal Real Estate Settlement Procedures Act. This video tells you about it all.
RESPA requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending institutions.
RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices and business relationships between closing service providers and other parties to the transaction.
For more information on RESPA, visit HUD.GOV or call 1-800-569-4287 for a local counseling referral.
How Can I Find Out Information About My Credit History?
Watch this video and take a few notes! There are three major credit reporting companies:
- Equifax – www.equifax.com 1-800-685-1111
- Experian – www.experian.com 1-888-397-3742
- Trans Union – www.transunion.com 1-800-916-8800
Obtaining your credit history is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy.
What Factors Affect Mortgage Payments?
Well, as this story shows, the amount of the down payment the size of the mortgage loan, the interest rate the length of the repayment term and payment schedule will all affect the size of your mortgage payment.
In bullets:
- down payment
- loan size
- interest rate – fixed or adjustable
- repayment term – how long
- payment schedule – how often
all affect the size of your payment.
What Is The Debt-To-Income Ratio (DTI)?
Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan.
Like the video says: debts are existing financial commitments; a car payment is a debt a grocery bill is not.
To calculate your debt-to-income ratio add up your monthly debt payments and divide them by your GROSS monthly income. (Gross income is generally the amount of money you earn BEFORE taxes and other deductions.) The Federally-established debt-to-income target is a maximum of 43% for Qualified Mortgages.
If your ratio is higher there may be other loans available – however, there may also be additional questions to establish your ability to repay, and the rates may be different than those available for Qualified Mortgages.
Studies suggest that a high debt-to-income ratio puts a homeowner at greater risk of challenges making monthly payments. So consider your situation and risks carefully before exceeding that suggested ratio.
What Is Earnest Money, And How Much Should I Set Aside?
Like the video shows, “earnest money” is money you put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price though the amount can vary with local customs and conditions.
If your offer is accepted the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your earnest money is returned to you. If you back out of a deal, you may forfeit the entire amount.