How to Figure Out How Much House You Can Buy

  How to Figure Out How Much House You Can Buy If you’re looking to buy a home but are unsure of how much house you can afford, here are five steps you can use to figure it out. Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis One of the questions I get asked a lot as a Realtor is, “How much house can I buy?” In other words, how can you determine what your housing budget is when purchasing a house? There are five steps you must follow: Figure out your household’s income after taxes. What do you and other income earners who will be contributing to the household bills bring home each month after taxes? Look at your last paycheck stub, ask your HR department, or use an online paycheck calculator to calculate this amount. Make a list of your household’s recurring monthly expenses. This should include bills you pay every month and bills you only pay some months—like car insurance. If you don’t already have a way you’ve been tracking your budget, look at your checkbook, your bank statements, and your credit card statements to help figure out what you’ve been spending. Note which expenses are optional and which are necessary. Make a list of expenses that you will add to when you become a homeowner. Expenses you’ll have that you didn’t have as a renter include water, trash, and home maintenance. You’ll also pay property taxes and hazard insurance. If you’re moving further from your job, your transportation costs may increase as well. If you’re going to make a downpayment of less than 20%, you’ll have to factor in the monthly cost of private mortgage insurance (PMI). Remember, it’s best to estimate high when planning your budget just to be on the safe side. I can refer you to a local lender who can help you with these steps. Determine how much you will have left after expenses to spend on housing. A lender can help you determine your maximum monthly payment by calculating what they call a debt-to-income ratio. Basically, this is what gets paid into the home versus what gets paid out on a monthly basis. Once you’ve determined your household budget, you should have an idea of what you’re comfortable paying on a monthly basis for a house. Don’t forget to leave room for emergencies, retirement, or whatever else you want to save for. In other words, count savings as a non-negotiable expense. Figure out how much house you can buy. The No. 1 way to truly know what your budget will allow for on a house note is to sit with a mortgage lender and have them look at your credit score and finances. A great lender will be able to help you figure out what your ‘no-more-than’ amount should be, which will determine which price points you should shop in. As a Realtor, I can help guide you to a local lender who will be an expert in these areas. If you have any other questions about this topic or you have a topic in mind you would like to see me discuss in a future video, please don’t hesitate to give me a call. I’d love to hear from you! Contact Us   Written by Ruby Miranda on September 23, 2018. Posted in Buy A Home, Buyer Tips, Financing A Home, First Time Home Buyers, Home Loan ProcessTags: Buy Your Home, Buyer Tips, Clifton Saunders, Financing A Home, First Time Buyer, Ruby Miranda Trackback from your site. Leave a Reply    

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Why Consider Buying in a Seller’s Market?

Even though we are in a seller’s market, it’s a great time to buy. Here’s why. Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis If we’re in a seller’s market, why would you consider buying a home in 2017? Well, according to Forbes, home prices appreciated beyond expectations in 2016 and mortgage rates were flirting with record lows before inevitably passing 4% for the first time in two years. Home prices rose in every month of 2016, with the largest increase being in the last half of the year. According to experts, prices will continue their climb in 2017, but at a lower rate. This means you can take advantage of the slowdown in appreciation right now. Mortgage rates are going up, too. Economists predict that they will increase by at least 1% by the end of 2017. If you wait to buy a house, you might not be able to afford the same home you could now. Why would you wait to save up and have less buying power? Economists predict interest rates will go up by 1% this year. More and more millennials are transitioning from renting to buying, but the inventory of homes is limited and probably won’t grow significantly in the next few years. Home builders aren’t building enough homes to make up for the shortage, either. With mortgage rates and home prices increasing, affordability will become a problem in the near future. If you’re thinking of buying or selling a home, give me a call or send me an email. I look forward to hearing from you soon. Contact Us   Written by Ruby Miranda on September 23, 2018. Posted in Buy A Home, Buyer Tips, Financing A Home, First Time Home Buyers, Home Loan Process, Market SnapshotTags: Buy Your Home, Buyer Tips, Financing A Home, First Time Buyer, Market Snapshot Trackback from your site. Leave a Reply

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Staging Tips for Selling Your Home During the Holidays

If you plan on selling your home during the holidays, I have four tips to help you stage and decorate your home without overwhelming potential buyers. Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis This time of year, the calendar is packed with holiday parties and budgets are strained by gift giving. A lot of people think that now is not the season for real estate. The good news is that there are still plenty of brave house hunters out there who do venture out during the holiday season in serious pursuit of buying a house. The right decor and stylish trimmings can make them want to celebrate the holidays in your home. If you are selling during the holiday season, try these tips to get buyers in the right spirit: Clean and stage before you decorate your home. Your home needs to be staged. If your home is already piled high with clutter, adding ceramic holiday decorations will only increase the sense of overcrowding. Limit yourself to a few items of holiday flair and stash the rest in the basement for now. A few decorations can stir the holiday spirit, but don’t feel obligated to hang every last ornament. Make sure your decorations are in tune with the feel of your house. Compliment your palette. Before you start untangling cobwebs or tinsel, make sure your holiday decor matches your current decor. If you have an earthy color scheme, focus on decorative accents with rich tones like pumpkins, cranberries, and forest greens and golds. Keep your decorations in tune with the feel of your house. Accentuate the positive. Too many decorations may distract buyers but the right accessories can draw attention to your home’s best features. Hang ghoulish ghosts or dangle a mistletoe in archways or display your menorah in front of bay windows. Don’t block the view with sticky holiday decals or clutter the elegant fireplace with too many personal, seasonal items. We know you love them but not everyone will. Go light on the lights. Step away from the inflatable snowman! Remember, one man’s light is another man’s tacky, so tone down any over-the-top displays while your home is on the market. (No, your neighbors didn’t pay us to say that!) Instead, use simple string lighting to play up your home’s architecture. I hope these tips help you prepare your home for the market this holiday season. If you have any additional questions, please don’t hesitate to reach out to me. I would be happy to help you! Contact Us   Written by Ruby Miranda on September 23, 2018. Posted in First Time Home Sellers, Home Staging, Market Snapshot, Sell Your Home, Seller TipsTags: First Time Seller, Home Staging, Market Snapshot, Sell Your Home, Seller Tips Trackback from your site.   Leave a Reply.

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