How Can Realtors Help Find Your First Home?

Most people don’t realize it but curb appeal is so important when selling a home. Think about it, are you more inclined to buy a run-down beat up old house that you have to put tons of time and effort in to getting it running again? Wouldn’t you rather buy a beautiful home you were excited about and could already see yourself living in?

Generally speaking it is a good idea to have a polished house ready for showing. If you have to paint it, do so. People are more attracted to buying newer things that are already in good condition to eliminate the work for them. This relates to many different areas of the house, but the exterior of the house is most important because it is the first impression your potential buyers are going to have of the property.

Also it is a good idea to have your lawn mowed and your landscape finished. This is going to create more appeal because it will bring your property to life and make it look more put together. You will be able to give them imagery of what it will be like. This creates opportunity for conversation to get to know the potential buyers and have them get to know you.

It is important to have a well maintained driveway because that is one of the things that frames your house. Your house can look years younger if your driveway is in good shape. It is also one of the first things they see when they arrive at their showing. Anyone appreciates a new waxed walk way or pressure washed driveway.

Driving up to a house even if it isn’t the best house in the world will profit majorly just from the condition it is in and showing the potential buyers it is worthy of their residency.

All of these things are going to help your house sell for more money than it would without curb appeal. The better it looks, the more eye-catching it is going to be. The more eye-catching it is, the more people are going to be attracted to it. The more attracted to it people are, the more interest there will be for people to buy it. And the more interest there is, the faster it will sell.

Curb appeal is majorly important in selling a home not only to show that the house is worthy of being kept in good condition, but also to be selling something that has quality and can hold value.

Immobilienmakler Heidelberg

Makler Heidelberg

Best Way to Find Foreclosures – 5 Tips for Finding Foreclosures

Are you looking for foreclosures in your area? Conditions in various seller’s markets may be different but there are still ways in which you can easily find foreclosed homes for your ownership.

Tap the services of real estate agents. Real estate agents are given access to a system which is known as MLS or Multiple Listing Service. It is through this system that the agents are able to find foreclosed homes in a specific area. Thus, tapping such professional is one way to find a foreclosure.

Scout for real estate yard signs. Banks are still into the practice of putting yard signs into properties that have come back to their stables of possessions. There are variations of these signs but aside from foreclosure, included among the most common signs are bank-owned, bank repossessed, and bank repo. Typically, the real estate agent’s name is reflected on the sign. Take the opportunity to call whoever is written on the sign. with advanced thinking, you can already ask about forthcoming foreclosures in your area.

Join social media groups geared towards foreclosure buy and sell. Social media has become habitat to a variety of groups with different purposes and goals. Foreclosure groups are no different. They have thrived and lived on social media. If you are savvy enough, you will be lucky to find some groups over Facebook. Join them. You’ll not only find foreclosures in your area. You will also be up for learning from the experiences, tips, and suggestions that will be shared by other members.

Visit real estate websites. Apart from the real estate agents themselves, a lot of real estate firms maintain official websites. There are firms which concentrate on foreclosures. There are also those which offer the buying and selling of mixed properties along with foreclosures. Either kind, you can browse through their listings and filter those properties that are already foreclosed or those that are nearing repossession.

Make your own ads. Digital marketing, aside from being free, is powerful in terms of the number of reach it can have. A single post can reach multiple sellers. Utilize your social media accounts for free posts that you are looking for a foreclosed property to buy. Just patiently wait for responses, and you’ll be more than happy to see that there are indeed a number of persons who are willing to negotiate for their foreclosed homes.

Foreclosed properties are just near your place. By finding them and giving good offers, you are not only taking a step towards buying a dream house or an investment property. You are also making someone benefit from the amount that will be granted when deal is closed.

Immobilienmakler Heidelberg

Makler Heidelberg

Money Secrets Of The Amish by Lorilee Craker – Personal Finance Book Review – Shopping Secondhand

Challenging economic times inspire people universally to make wise financial decisions. One culture that has always lived an austere, yet meaningful existence is the Amish. Increasingly, people are inspired by their lifestyle; and seek ways to simplify their own lives.

Lorilee Craker is the author of the new book, „Money Secrets Of The Amish-Finding True Abundance in Simplicity, Sharing and Saving.“ She examines their practices, extravagant in peace, family and community closeness. For them, thrift is a muscle that is exercised regularly.

Craker interviewed Amish folk in Indiana, Michigan and Pennsylvania, including an Amish banker whose clientele is 95 percent Amish. During the Great Recession in 2008, his bank had its best year ever. Amish experts and Englishers‘ (Amish reference to anyone non-Amish), financial perspectives accentuate the book too. Here, the money-saving habit of shopping secondhand is highlighted.

Shopping secondhand is a key money-saving secret of the Amish. Thrift stores are a great source for many items, including clothing, furniture, bedding and games. Craker quotes an Amish woman who says, „You don’t have to buy something new to buy something good.“ Here are some tips to complement your resale shopping experience:

Tips on Buying Used Clothing

  • Rethink it. Reject the belief that used clothing is gross because other people have worn it. Buy clothing at a high-end store. Odds are good, even there, that others have tried it on at some time.
  • Mix and Match. Pair something new with something gently used from a second-hand store. Leave your findings to serendipity vs. a specific search.
  • Try things on. Many thrift stores have nice, clean dressing rooms, so there’s no reason to observe fit.
  • Don’t buy clothes you won’t wear. It’s no bargain if you won’t get use out of your purchase.
  • Don’t limit yourself to favorite brands. It’s cool to find old favorites, but once you develop your thrift eye, you’ll appreciate pieces from unknown labels.
  • Think accessories. Many accessories are available at thrift stores, including jewelry, belts and handbags.
  • Brief yourself on what’s vogue. Google trends before visiting resale shops.
  • Institute a one in, one out policy. Every time you purchase something new, discard something old. Give it away or make a donation to an organization.
  • Define your upper limit. What is your flinch point? It’s the amount that forces the questions, „Is it worth it?“ „Can I really use it?“ and „Can I live without it?“

Tips on Buying Furniture and Home Decor

  • Debrief yourself with a great flea market magazine. Studying such magazines will give you new perspective on home decorating possibilities via thrift stores.
  • Think junque. Mix serious antiques with „junque.“ Rethink how and where you’re going to decorate and furnish your home. Vintage style adds instant heritage to any home. Vintage objects promote expressing individuality and creativity on a limited budget.
  • Buy only what you love. Home décor and furniture resells at an average one-tenth of original cost. Ask yourself, „Do I love this or just like it?“ „True love stands the test of time,“ says Craker.
  • Buy only what you need. Sure, buy smaller items for future anniversary, birthday and baby/bridal shower gifts. It’s senseless however to buy something you don’t need but simply like when it’s a larger item.
  • Buyer beware. Here are five guidelines when purchasing used furniture:
  • Buy solid hardwoods such as maple or oak, which endure. Some furniture only lasts for one owner.
  • Look for quality construction. Check underneath seats for bolts vs. glue, etc.
  • Assess furniture smells. Fouls scents in upholstery will never end; pass on the purchase. Wooden armoires, chests and drawers placed in the afternoon sun will open their wood’s pores and release odors.
  • Open drawers, sit on chairs, lean on tables. Watch for creaking, moaning or wobbling.
  • Consider original use sometimes. It’s ok to fill an antique china hutch with towels, linens, books, etc., but not electronics. Inadequate ventilation can generate heat and become a fire hazard.

Garage Sales. „Garage sales are a complete hit or miss,“ says Craker. Here are some tips to enhance your shopping experience:

  • Arrive early. The early bird gets the worm and the best selection.
  • Arrive late. Attend later in the day and be prepared to haggle with the seller. Try bundling two or three items and quote the seller a discounted price. They may seize the opportunity for a sale in exchange for unloading the items.
  • Peer deeply. Scan all the offerings and you may find some hidden gems.

You may have been loathe to use resale shops in the past. Here’s hoping the above cash-saving tips have inspired you to at least visit a local store. You might be pleasantly surprised.

Immobilienmakler Heidelberg

Makler Heidelberg

Real Estate Tips For Making Your Home Sell Fast

If you’re looking to sell your home fast, then this article is for you. If you’re home has been on the real estate market for a long time and has had a lot of visitors but no sales, then you will benefit from the home selling tips listed in this article. And if you’re currently investing in real estate but a home that you purchased hasn’t sold yet, than you will benefit from this advice also.

Selling your home fast doesn’t have to be a complicated process. The first thing that you want to consider when showcasing your home is to point out the most attractive feature to your buyer. You want to make sure that your home is design to sell and that all minor repairs have been attended to before you put it up for sale. Your real estate results will be much better if you’ve put in the work and time to renovate your home specifically for selling.

To help with the designing of your home for setting it up for sale, you have 2 options. You can either do it yourself, or hire the help of professionals. Both have their pros and cons, so you should weigh them both evenly.

The benefit of doing it yourself is obvious. You can save money, but your time will be spent focusing on one repair. If you hire the help of professionals, you will have more time to work on other areas of your home, but it’s your money that will be spent. You have to decide which will be better towards making the sale.

If you hire the help of professionals, you should hire an interior design team. This team will decorate your home and stage it properly to make it sell. A properly designed home will definitely help to close a sale faster than a home that is full of clutter.

You should also consider hiring someone to organize your home. This organizer should go through your home and organize all key areas of your house such as the attic, garage, basement, and closets. These are areas that buyers have a keen eye for, so you want to give the best impression when buyers view your home.

After the interior of your home is staged properly and is ready to sell, it’s time to market it. Either you or a photographer can take pictures of your home so that you can market it online and via newspapers. You want clear, clean, and crisp pictures of your home.

You should consider hiring a photographer because more than likely they will have one of the best cameras available that will be able to take the beautiful pictures you need to sell your home. Or if you can afford it yourself, purchase a highly-quality camera that will be able to take the kind of pictures you need to sell your home.

All of these tips will impact you selling your home now so you shouldn’t take them lightly. When it comes to real estate selling, all of these points are crucial so you should skimp on any part. Skimping on key areas is the main reason why homes don’t sell fast, you want to ensure that you take each area seriously. Good luck with the selling of your home.

Immobilienmakler Heidelberg

Makler Heidelberg

Real Estate Cost of Capital – Buying Undeveloped Land

For prospective real estate investors who feel tenants and building maintenance are ongoing headaches, buying undeveloped land may appear attractive. If you buy land in an area that’s expected to experience expanding demand in the years ahead, you should be able to make a tidy return on your investment. This is called buying in the path of progress, but of course the trick is to buy before everybody realizes that new development is moving in your direction.

When you buy undeveloped land your investment may take longer to be paid back and therefore you need to be especially aware of your real estate cost of capital.

You may even hit a home run if you can identify land that others don’t currently see the future value in holding. However, identifying many years in advance which communities will experience rapid population and job growth isn’t easy. Land prices in areas that people believe will be the next hot spot already sell at a premium price. That’s what happened in most major cities with new sports facilities (especially because these decisions often are dis- closed well in advance of the municipality leadership vote or the ballot initiative). You don’t have much opportunity to get ahead of the curve – or if you guess wrong, you may own some costly land for a long time!

Investing in land certainly has other drawbacks and risks:

  • Care and feeding: Land requires ongoing cash to pay the property taxes and liability insurance, and to keep the land clear and free of debris while it most likely produces little or no income. Although land doesn’t require much upkeep compared with tenant-occupied property, it almost always does require financial feeding.
  • Opportunity costs: Investing in land is a cash drain, and of course, purchasing the land in the first place costs money. If you buy the land with cash, you have the opportunity cost of tying up your valuable capital (which could be invested elsewhere), but most likely you will put down 30 to 40 percent in cash and finance the balance of the purchase price instead.
  • Costly mortgages: Mortgage lenders require much higher down payments and charge higher loan fees and interest rates on loans to purchase land because they see it as a more speculative investment. Obtaining a loan for development of land is challenging and more expensive than obtaining a loan for a developed property.
  • Lack of depreciation: You don’t get depreciation tax write-offs because land isn’t depreciable.
  • Cost of Capital: Make short and long term projections for the length of time you will hold your property.

On the income side, some properties may be able to be used for parking, storage income, or maybe even growing Christmas trees in the Northwest or grain in the Midwest! (After you make sure you’ve complied with local zoning restrictions and have the proper insurance in place.)

Although large-scale land investment isn’t for the entry-level real estate investor, savvy real estate investors have made fortunes taking raw land and getting the proper entitlements and then selling (or better yet, subdividing and then selling) the parcels to developers of commercial and residential properties (primarily home builders). If you decide to invest in land, be sure that you:

  • Do your homework. Ideally, you want to buy land in an area that’s attracting rapidly expanding companies and that has a shortage of housing and developed land. Take your time to really know the area. This isn’t a situation in which you should take a hot tip from someone to invest in faraway property in another state. Nor should you buy raw land just because you heard that irresistible opening bid price advertised on the radio for the government excess land auction down at the convention center this Saturday.
  • Know all the costs. Tally up your annual carrying costs (ongoing owner- ship expenses such as property taxes) so that you can see what your annual cash drain may be. What are the financial consequences of this cash outflow – for example, will you be able to fully fund your tax- advantaged retirement accounts? If you can’t, count the lost tax benefits as another cost of owning land.
  • Determine what improvements the land may need. Running utility, water, and sewer lines; building roads; landscaping; and so on all cost money. If you plan to develop and build on the land that you purchase, research these costs. Make sure you don’t make these estimates with your rose-tinted sunglasses on – improvements almost always cost more than you expect them to. (You need to check with the planning or building department for their list of requirements.)

Also make sure that you have access to the land or the right to enter and leave through a public right-of-way or another’s property (known as ingress and egress). Some people foolishly invest in landlocked proper- ties. When they discover the fact later, they think that they can easily get an easement (legal permission to use someone else’s property). Wrong!

Understand the zoning and environmental issues. The value of land is heavily dependent on what you can develop on it. Never purchase land without thoroughly understanding its zoning status and what you can and can’t build on it. This advice also applies to environmental limitations that may be in place or that may come into effect without warning, diminishing the potential of your property (with no compensation).

This potential for surprise is why you must research the disposition of the planning department and nearby communities. Attend the meetings of local planning groups, if any, because some areas that are antigrowth and antidevelopment are less likely to be good places for you to buy land, especially if you need permission to do the type of project that you have in mind. Through the empowerment of local residents who sit on community boards and can influence local government officials, zoning can suddenly change for the worse – sometimes you may find that your property has been downzoned – a zoning alteration that can significantly reduce what you can develop on a property and therefore the property’s value. See the sidebar „The dangers of downzoning“ in this chapter for more details.

 

Determine Your Real Estate Cost of Capital

Immobilienmakler Heidelberg

Makler Heidelberg

Real Estate Photography Tips for Beginners

Even with the recession, real estate is a billion dollar market in all the major developed and developing countries. What do you think is the first thing people see when scouting around to buy property? The answer would be the pictures of the property in question. Human beings respond better to visual stimulation.

Therefore, quality and interesting photography matters a lot and if you are a property photographer you should take it seriously. Why? Because your livelihood depends on it! If you are trying to sell real estate photographs to realtors and they are not worth the dollars the realtor pays, your effort goes to waste.

Real Estate Photography Tip #1: Capturing the Best Images

The intention is to sell the property so your photography should definitely be appealing to the people who view them. Try to highlight the best features of the house; the features that potential buyers will like to see matter the most. The photography also depends on the nature of the property – residential or commercial. Actually the pictures should showcase your talent and skill. While searching for realtors to see the images, sometimes you need to provide samples so capturing the best of images will greatly help to clinch the deal.

Real Estate Photography Tip #2: Selling the Images

To earn a living in this type of photography professionally, give yourself 1-2 years of time for creating a solid base of clients. You can set up a professional website with your portfolio, current projects (if any), specialization, skills, and lots of high-definition clear pictures for prospective buyers to see. Of course, you need to do a lot of marketing for getting the clients. Begin by scouting the area you are living in and any others that you have easy access to. Contact the realtors in the area, show them sample images and if luck is on your side, you will land your first deal soon!

Real Estate Photography Tip #3: Getting High Profile Clients

Getting high profile realtor clients who will buy your pictures is not easy because there are always better photographers around you and also you lack experience in the beginning. So after working for a year or two with local realtors, think of migrating towards getting high profile clients. The pay rate is definitely higher but you need to have real skill and knowledge to get an edge over others. Question yourself – what is there in you that sets you apart from other real estate photographers? Once you answer this, build on that aspect for better projects.

Of course, getting the high profile clientele is not easy. Be prepared for sample photo shoots as part of a personalized sales pitch.

Immobilienmakler Heidelberg

Makler Heidelberg

Defensive Buying – 5 Ways to Buy Smart in a Down Economy

Depending on where you live, your local real estate market may be experiencing a downturn. Historically, these market adjustments have served as a natural protection against runaway price inflation, and in the long-run can be very positive, but as a buyer in one of these markets you must buy smart to protect your financial future.

Here are 5 ways in which you can take advantage of a down market and protect your interests for the future at the same time…

1. Look at the local job market. Know who the major employers are in town and where their employees typically live. Read the papers and pay attention to the stability of these employers. If the company is in financial trouble, or is going to lay off employees, be careful about buying in areas heavily populated by their employees. Yes, you may get a great deal, but home prices may drop dramatically around you and cause you to lose money. Plan for that in your negotiations.

2. Research new commercial developments in your area. If you discover that a new retail / commercial center is going in near an area you desire to live in, take the time to find out what stores are planned for the development, and look at how things like traffic flow and access are going to be addressed. A bad plan can negatively affect area property values, but conversely a well-planned development can draw buyers like a magnet raising property values.

3. Learn about zoning. If you buy a home right next to land zoned for commercial development and you do not realize it, your property value could be negatively affected by the increase in traffic and the type of development. If you are looking in a fully-developed residential area this may not prove to be much of a factor, but be aware of any nearby open spaces and their zoning that could make access to your residential area more challenging. Again, good developments can be to your benefit, but consider how the changes could affect value in your negotiations.

4. Drive the area you desire to live in. Take a camera and a note pad to record what you find. Look for things like for-sale signs, blighted properties, new construction or residential developments, open lots and land, road construction and access, and the availability of retail services. Lots of ‚for sale by owner‘ or real estate signs could spell trouble as numerous homes for sale could cause a price reduction war to sell. Again, it may be to your benefit, but you must consider this in your negotiations.

Blighted properties will reduce the value of homes in the immediate area, and new construction, or anything that increases housing density can ultimately reduce value in a slow market as inventory increases and the number of buyers decreases. Be wary of new developments without any noticeable construction activity as there may be financial issues that could affect the value of all of the homes in the area. Don’t be the sucker that pays top price for a home nobody wants.

Open lots and the availability of land can be a positive depending on the area you are looking in, but keep in mind that zoning can change and there are lots of commercial developers out there looking for any sliver of land possible to develop in many markets.

5. Negotiate strongly with the seller. I am a firm believer in homes being exchanged for fair market values, meaning the transaction should be a win-win, but that doesn’t mean you cannot, or should not attempt to negotiate your best terms. Do your research and come to the table armed with extensive, current market knowledge, and a willingness to set your final terms and stick with them. Be reasonable, but firm. Be aware of the long-term implications of your purchase and ensure you have an exit strategy in place. Most importantly, do not be afraid to stand your ground. If you have done your research, the numbers will speak for themselves.

I hope these ideas will help you make a smart purchase in a down market. You must keep in mind that even if you get a great deal on a home, the market can continue to slow down and negate your gains. Know your market well enough to withstand the fluctuations. Above all, secure competent, knowledgeable assistance from professionals in the real estate industry to answer your questions and educate you so you can buy smart in our current market.

Immobilienmakler Heidelberg

Makler Heidelberg

6 Things You Must Demand From Your Real Estate Agent!

In the United States, there are well – over, one – million, licensed real estate professionals, although, only a relatively, small percentage of them, are responsible for, the vast – majority, of closed – transactions. Therefore, whether, you seek to sell you home, or are a potential, qualified buyer, it is wise, to carefully, choose, your agent, based on, your personal, best – interests, and, after interviewing them, feeling, they have the combination of attitude, aptitude, skills, persistence, professionalism, and expertise, to serve your needs, goals, and priorities! After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I strongly, believe, these 6 things, you must demand, of the individual, you hire. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, what this means, and represents, and, why it matters.

1. Integrity: The real estate professional, you choose, must, consistently, exhibit, absolute integrity! To serve and represent you, you need, and deserve, someone, you feel confident, you can, consistently, trust, in good – times, or less!

2. Allegiance: Nearly every state, as well as Realtor Board’s, include a Code Of Ethics, regarding, the conduct, required by a realtor, to his clients, and customers, etc! One of the key components is, owing a client, complete allegiance, and protecting their privacy, etc. Your chosen professional must put – you – first, consistently, and never provide, any information, which might harm or compromise, your interest (however, that does not mean, violating the law, and/ or, providing any material misstatements!)

3. Tell what they need to know: My service – marked, slogan, is, I will always tell you what you need to know, not, just, what you want to hear. You need, and deserve, someone, who will inform you, in a realistic manner, rather than, wearing, rose – colored, glasses!

4. Prepare a client: Agents owe their clients, a readiness, and willingness, to thoroughly, consistently, prepare them, for potential, possibilities, in order to make this process, as stress – free, as possible! When one prepares his clients, properly, the transaction period, becomes, an easier one!

5. Negotiating expertise: One of the reasons, to hire, a specific agent, is their degree of negotiating expertise, in order to achieve the best price, in the shortest period of time, with a minimum of hassle! This requires the individual, to thoroughly, understand, and know the local, real estate market, etc.

6, Handling details: The transaction period, is, often, full of challenges, and requires, handling the details, effectively, and efficiently, on a consistent basis!

Since, for most, the value, of their house, is their single – biggest, financial asset, doesn’t it make sense, to do, whatever, possible, to ensure, you protect it, and make the best decisions, and take the smartest actions! Consider these 6 things, when you hire your real estate agent!

Immobilienmakler Heidelberg

Makler Heidelberg

Qualifying for a Home Loan in 2019 – What Requirements and Guidelines You Need to Know

1) How much of a Down Payment do I need to come up with?

In the recent past, people used to think 20% down was necessary to qualify for a home loan or to have a reasonable mortgage payment. For the most part, this is no longer the case. There are many types of mortgage programs that allow for low down payment options or no down payment in some cases. You also don’t have to be a first time home buyer to qualify for these programs either.

FHA Loans are one of the most popular types of mortgages applied for in today’s market, this is mainly because of low down payment options and the flexible qualifying requirements. Without down payment assistance, you just need a minimum of 3.5% down. A lot of people think FHA is strictly for first time home buyers, but that is not true. it’s a government-backed home loan, but they don’t require you to be a first time home buyer. FHA stands for Federal Housing Administration.

Conventional Loans have been gaining a lot of traction over the last few years and will soon replace the FHA loan program as the most popular loan product on the market. Conventional loans allow for a minimum down payment as low as 3% down and also allows for several creative ways to buy out the monthly PMI (Private Mortgage Insurance). This strategy helps reduce the monthly payments while increasing your buying power.

Minimum Down Payment requirements for each loan type below:

VA Loans – No Down Payment required

USDA Loans – No Down Payment required

FHA Loans – Minimum 3.5% Down Payment required

Conventional Loans – Minimum 3% Down Payment required

You can use gift funds for any of the programs listed above. Also, If you are a first time home buyer be sure to ask your loan consultant if you qualify for any down payment assistance program.

2) What Credit Score do I need to qualify for a Mortgage?

Aside from income verification, one of the biggest determining factors in qualifying for a mortgage is your credit score. The higher the credit score the better your chances will be in qualifying. When a mortgage company or bank checks your credit for a mortgage application they will pull what is known as a tri-merge. That is when a credit report is combined with data and individual scores from the 3 major credit bureaus. Equifax, Experian, and TransUnion. The middle of the 3 scores will be used to determine your qualifying score. Ideally, you want to have a middle credit score of 680 or above. In most cases, the higher your credit score is, the better your rate and terms will be as well.

There are minimum credit score requirements for every loan program, but to ensure you get qualified for the most competitive terms it is important that you do everything you can to learn how to increase and improve your credit.

Below are the minimum credit score requirements for each loan program:

VA Loans – 620 (some lenders may allow for as low as 580+)

USDA Loans – 620

FHA Loans – 580

Conventional – 620

3) What are the Income Requirements and Guidelines for a Mortgage?

Proving your ability to repay the loan is one of the most important requirements in the qualifying process. That is why showing sufficient and consistent income documentation is crucial when going through the pre-approval or qualification process. If you are a W2 employee and paid a salary then the verification process is fairly simple. However, can be more difficult for people that receive and/or rely on commissions, bonuses, overtime, etc. For borrowers that are self-employed and/or receive a 1099 it can be even more difficult and complex especially since you can have a lot more write-offs and deductions when you’re self-employed.

First and foremost you need a 2-year work history to even qualify using any income source. However, for full-time hourly or salaried employees that doesn’t mean you have to be at the same company or industry for 2 years. That used to be a requirement but not anymore unless the lender/bank has their own overlay. If you receive and want to use commission, bonus, overtime or other types of income then you have to show a minimum of a 2-year history and the bank/lender will use a 24 month average for qualifying purposes. Self-Employed borrowers are now able to qualify with 12-24 months bank statements for certain nontraditional (non-QM) loan programs.

Qualifying Income Sources:

* Full-Time W2 Income/Salary

* Income from Part-Time Jobs (must be at the job for a minimum of 1-2 years in some cases)

* Income from a second full or part-time job

* Overtime, Commissions, Bonuses (must average over 24 months)

* Seasonal (must prove 2-3 years consistency)

* Self-Employed Income

* Bank Statements (12-24 months)

* Permanent Disability

* Retirement/Pension

* Child Support/Alimony (Sufficient documentation required)

* Asset Depletion

What are the Required Documents Needed?

There are specific required documents needed that your loan consultant will request in order to process your loan approval. You should at least have the below list of documentation readily available and be ready to provide more depending on your particular situation.

* Complete Federal Personal and/or Corporate Tax Returns for the past 2 years (ALL SCHEDULES)

* W2’s for the past 2 years

* 1 Month worth of Pay Stubs

* Bank Statements (may need anywhere from 2-24 months)

* Retirement/Pension and/or Social Security Award Letters

* Disability Award Letter

* Divorce Decree

* Business License

* Asset Documentation

Immobilienmakler Heidelberg

Makler Heidelberg

5 Common Mistakes First-Time Home Buyers Make

If you are going to buy your first home, you may be excited as well as nervous. This process can be full of complexities. Therefore, you may want to be properly prepared in order to make sure that you buy the best home to satisfy your needs. Given below are some common mistakes that you may want to make during this adventure.

1. Not doing Proper Research

First of all, you may want to understand the needs and finances of your family. For this purpose, you may want to analyze your assets and liabilities. Once you are approved for finance, you can go ahead and start your search for the right house. You should be familiar with your neighborhood as well. Make sure that your neighborhood has quality schools, transport facilities, and other amenities.

2. Opting for the Wrong Mortgage

Before you look for the best house, you should be in the best position to negotiate. Make sure you choose your finance package after proper research. You may also want to use the services of an independent finance broker in addition to your bank. These institutions have access to a lot of finance products and lenders.

3. Waiting too Long

There is no doubt that the prices of real estate properties continue to fluctuate based on the rule of demand and supply. However, if you just keep waiting for the prices to come down, you are putting the future of your family at risk.

So, what you need to do is set your budget considering your future needs. This will help you buy the right house at the right time.

4. Crossing your Budget Limit

It is not a good idea to go beyond your budget limit. You may want to go for a property that can satisfy your budget. Even if you like a house, you should only go for it if it falls in your price range. After all, you don’t want to get in trouble down the road.

All of us want a little more than we can actually afford. So, no matter what your real estate agent suggests, you should never be tempted. Spending more than what you can afford can put you in financial trouble in the near future.

5. Falling in Love

If you have found a house that you have fallen in love with, make sure the seller’s agent does not get even a hint of it. Typically, agents are very smart, which is why they can read your emotions. If you cannot afford a house that you just love, don’t just pay more than what you can afford. You can find a better alternative at the right price.

Long story short, you may want to avoid these 5 mistakes if you are looking to purchase your first home. By avoiding these common mistakes, it will be easier for you to get the right house at the right price. Hopefully, these steps will help you get the best deal without making costly mistakes.

Immobilienmakler Heidelberg

Makler Heidelberg

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