Two New Reasons To Sell Now Vs. Later
The government is driving up housing costs...again. 1 - The Government's New Rule The FHFA, which is the government agency that oversees Fannie Mae and Freddie Mac, decided that lenders must charge higher fees and interest rates to homebuyers who have a debt-to-income ratio greater than 40%. The debt-to-income ratio is the buyer's total monthly debt payments DIVIDED BY their total monthly income. For example, if the buyer's total monthly debt payments (credit cards, car, mortgage, etc.) are $2,800 and their total monthly income is $7,000, their debt-to-income ratio would be 40% ($2,800 / $7,000 = 40%). The new rules go into effect on May 1, which may impact potential buyers at that time. Buyers won't have to pay the extra fees if you close on the sale of your home before then. 2 - The Domino Effect Unfortunately, this new rule may cause closing delays or deals to fall through at the last minute after May 1. That's because the buyer's income and expenses can change several times throughout the home-selling process. This is especially true if the buyer's income is from self-employment, part-time employment, or “gig economy” employment. Even small changes in income and expenses can cause the buyer's debt-to-income ratio to cross the new 40% threshold. This may drive up interest rates at the last minute, invalidate loan approvals, or result in closing delays. NUMBER OF THE WEEK: 40% The new rules will impact buyers if their debt-to-income ratio is greater than 40%. [credit: Brian Reno, BDR Mortgage Capital | source: Momentifi]
All About Moving
Before Moving Day: Arrange for movers or moving van. Need additional storage? Arrange for a storage unit as well. Purge items before packing. Consider donating unwanted items. Checkout Goodwilll, Salvation Army, 1-800-Got-Junk, or estate sale services. Measure large furniture pieces; this will help when trying to navigate tighter spaces. Collect, purchase durable boxe or bins, packing tape, and markers. Go to USPS.com to notify the change of address. (It is best to do this 30 days prior to your move.) Update your online accounts, especially shopping outlets like Amazon.com. Notify your bank. Notify credit card companies. Notify magazine subscriptions. Call utility companies for the home you are vacating and for your new home. Cancel any home deliveries. Empty the refrigerator and freezer prior to your moving date. Have appliances serviced for moving. Do you need to arrange boarding for your pets? Take care of that now. Plan for the transport of pets and plants. Moving Day! Carry currency, jewelry and important documents or use registered mail. Pack an overnight bag, including towels and sheets. Inform family & friends of route and schedule for that day. Notify them if any changes occur. Moving to a New Area? Bank: does your current bank have locations in your new city? Health care providers: request recommendations and the best way to transfer records. Schools: contact the current and new school district to enroll and transfer records. Vehicles: check with local bureaus on appropriate procedures, regarding drivers licesnes, etc. Pets: consult your current veterinarian for records and recommendations.
3 Things to Do While Searching for a House Online
Here are three things to do while searching for a house online. First, determine your priorities. What are the must-have features in your new home, such as the number of bedrooms, bathrooms, square footage, and location? Having a clear idea of what you want can help you narrow down your search and save you time. Second, use reputable real estate websites. There are many real estate websites available, but not all of them are reliable or up-to-date. If you're using third-party sites, use reputable websites such as Zillow or Realtor.com to ensure that you're seeing accurate and relevant listings. These websites often offer features like virtual tours, floor plans, and property history that can help you get a better idea of the house before you see it in person. Still, the internet is infmation-saturated, and the most accurate and relevant infomation will be proveided by real estate professionals. Third, check the property and neighborhood details, especially with the help of a real estate agent. It's important to thoroughly research the property and neighborhood before you make an offer. Look for information about the crime rate, school district, nearby amenities, and transportation options. Make sure to check the property's history, including its sale history, property tax information, and any disclosures or reports that might be available. This information can help you make an informed decision and avoid any surprises down the road. JL
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