The DTI ratio is one of the most important ratios there is when it comes for qualifying for a co-op or getting a loan from the bank. This simple equation is often done wrong or over looked until after an offer is made. In the video above Alexander Fazelani explains what is a DTI and how to calculate it.
How To Save To Buy A Home in Your 20s
In recent years, the average age of first-time home buyers has become lower and lower. With interest rates at record length lows, and more awareness being built around financial literacy and wealth building, we decided to share a few tips for those of you in your 20s looking to own real estate.
Regardless of your annual income, it is very possible to strategize and save enough money to become a home owner – which opens the doors to becoming a real estate investor!
In this video Queens, NY Real Estate Broker Alexander Fazelani breaks down 5 strategic ways to begin building wealth through real estate in your 20's - a time when many of us are not necessarily at the income bracket we hope to be in to consider purchasing a home.
Looking to purchase a home in the next 3 months to 24 months? View homes for sale today and familiarize yourself with the market! As always, we are here to be a resource for you and your network. Feel free to call us at 347-707-3098 or 917-915-4417 (or email info@iarealtygroup.com) with your real estate questions. We’re happy to help!
When is the Right Time to Buy?
FOLLOW THESE 5 STEPS TO GET YOU CLOSER TO THE CLOSING TABLE FOR YOUR STARTER HOME.
Queens’s prices are through the roof! ...but so is the rent. In this fast paced market how do you know when is the right time to buy? Here are 5 necessary steps you will need to take to go from your rental to your starter home:
1. GET YOUR CREDIT READY!
Credit scores are one of the most important factors when getting a mortgage. With good credit comes a good interest rate! Lenders look for long-term on time payments before lending you the hundreds of thousands you will need to purchase your Queens home.
The more lines of credit you have the better. So if you have one credit card it might be time to up the credit game a little. For more info on credit building CLICK HERE. Remember when getting new credit cards it will effect your credit score by 5-15 points. Over time it will grow into a beautiful money tree helping you get the funding you need for your future home.
FIGURE OUT, WHICH MORTGAGE IS THE RIGHT MORTGAGE FOR YOU.
Even if you don’t have 20% down you can still get a mortgage for a little as 3% down. If your mortgage is lower then 20% you will have to get what is called mortgage insurance, which is roughly .85% of the mortgage and is not tax deductable in any standard.
You can also lower your mortgage insurance and your rate by taking a short-term loan. Like a 5 year ARM where the interest fluctuates every 5 years. This might not be the best option if you are planning to live in the home long-term.
Does it sound like I’m speaking another language?
LET A PROFESSIONAL MAKE IT SIMPLE TO UNDERSTAND
KNOW WHAT YOUR TAX DEDUCTIONS ARE!
When you buy a home your property tax and mortgage interest are tax deductable. So, when you file your taxes at the end of the year you'll owe less money to the IRS. Speak to a financial professional for more details.
COMPARE RENTING VS. BUYING.
Most people make the mistake of looking at the monthly and comparing it that way. To truly compare you have to compare it after your tax deductions and the whole nine yards. That will give you the true numbers you need for a proper and accurate comparison.
KNOW THE DIFFERENCE BETWEEN A CO-OP, CONDO, AND RESIDENTAL PROPERTY.
It is wise to speak to a local real estate professional to come up with a game plan. A good realtor will look at your budget and connect you to other professionals to help you come up with a budget and over all game plan.
THE BASICS:
Co-ops: Usually require 20% down payment and have many requirements regarding DTI. They have policies regarding subletting and pets. You usually must pass a board interview and an application process (NOT REAL PROPERTY).
Condos: You can get an array of loans for this property but buildings don’t usually accept FHA loans. Some condos do require a board process (rare). A Condo does have common charges and taxes similar to a co-op but does not have as many rules and policies. (REAL PROPERTY)
So renter, there you have it! Those are the five steps you need to start moving toward ownership. It would be a wise choice to reach out to a real estate professional to help you brainstorm and come up with a game plan. Also, most buyer representation is FREE! So, you have nothing to lose and everything to gain!
GET LINKED TO A PROFESSIONAL REALTOR
"Alex is a great realtor! He not only helped me find a great 2 bedroom in Forest Hills, but he also helped me sell my studio quickly. He's very professional, extremely responsive, and always available to answer questions. I would recommend him to anyone looking to buy OR sell." - ZILLOW USER
5 Ways to Avoid Driving Your Realtor® Insane
Not all agents are made equally. Not all agents will be great at what they do. So it’s important to find one with a great reputation and someone who holds their business to a high standard.
SO, YOU FOUND ONE? That’s awesome; I hope your agent is treating your family with the highest level of loyalty and respect.
Like any professional relationship it’s important to be on the same page. So this is how you avoid driving your agent insane.
Being Untrust Worthy. Price Swapping.
Most buyers don’t really pay for a realtor’s time. Some buyers unintentionally or intentionally put themselves and their agents into compromising situations. If you agree to work with an agent, it is wise to stay in communication with your agent. It is important to be upfront about your intentions. Are you not looking to work with one agent? Are you looking to find a place yourself?
One huge issue that can cause major issues is price swapping. Attempting to negotiate a deal behind your agents back is a big no-no! It not only will cause potential issues legally, but it might cause you to lose the property and sometimes lead to legal issues. So, don’t do it.
Making Unjustified Lowball Offers.
So, you walk into a fully renovated house marketed at $600k. You put in an offer for $400k just to see what the owners say. The real estate business is a business based on building relationships. There is nothing more insulting to a potential seller or agent than constantly low-balling.
It is in your best interest to be strategic, but you must be realistic and realize that you get no where by insulting someone's biggest asset.
Unrealistic Expectations During Showings.
Demanding loads of unrealistic attention early on is a sure fire way burn a bridge with a realtor who is only trying to help you.
It’s important to educate yourself on the market. Viewing houses is not going to necessarily mean you are ready to purchase. You may be 1-2 years away from actually being ready. You shouldn’t demand so much time from a realtor if you are just looking around. Realtors are not tour guides. They are “home purchasing” consultants.
Indecisiveness
One moment you want a condo, then you want a co-op. Then you read an article and decide to buy a house. Then you realize you can't really afford the upkeep of a house and decide to go back to a co-op. Any good realtor will help you come up with a game plan – before showing your properties . Lay out all your options and help you figure out your budget.
LOOKING TO BUY A HOME IN QUEENS?
So, the next time your not sure how to proceed just ask your trusted realtor. Transparancy is the best form of business. You wouldn’t tell a doctor how to do your surgery? A good professional deserves your respect and loyalty as well.
Happy house hunting!
6 Tips That Will Improve Your Home's Value.
TINY UPGRADES...BIG MONEY
NO MATTER THE SIZE OF YOUR BANK ACCOUNT, THERE ARE STILL SMALL THINGS YOU CAN DO TO IMPROVE YOUR RESALE VALUE!
It does not matter if you are getting your home ready to sell or just want a couple of tips for improving the over all look of your pad. It is important to start where your money counts most. Many home owners and DIY-ers are making huge bucks from prospective buyers by focusing on these 6 areas of their homes. So let us help you get the best return on your investment possible!
YOUR LAWN IS THE FACE OF YOUR INVESTMENT
This might be the easiest fix one can do at an affordable price. If it is fall or summer your curb appeal matters! When someone sees the FOR SALE sign outside your house, before they even see the bricks and Morter, they see the grass and bushes. If you have an abandoned refrigerator or an old tire from your first car in your front yard it might be time to get rid of that. Nothing screams welcome and attracts more buyers then a nicely maintained lawn. Make your realtors job easier and help him or her get more people into the house.
YOUR BATHROOM, MIGHT COST YOU YOUR BUTT
(NO PUN INTENDED)
According to any good google search the average person spends nearly a year and a half of their life in the bathroom. Yes! So updating your bathroom and keeping it freshly painted or tiled will definitely raise the desirability and value of your home. Bathroom jobs can be pricey so it might be wise to consult with a real estate professional first.
LIGHTS, CAMERA, ACTION
Alexa, turn on the kitchen lights... The age of using fingers to turn on the light in a room are over. Switches are so yesterday but if you decide to update the lighting of your place make sure its done right. Remember the old realtor adage "The brighter the room the larger it looks." Go to home depot and get some LED lights and watch your potential buyers shine!
THE KITCHEN IS THE HEART OF THE HOME
"Home is Where the Heart is."
FALSE! The kitchen is where the heart is. When it comes to a family home, the kitchen is where people congregate the most! Since it's a human need to eat, most traffic and discussions within the home happen around or near the kitchen. So if you want to raise your home's value this is where you might need to start.
A remodeled kitchen can make a huge difference in the sale of your home. Lacking the funds to redo your whole kitchen? Try replacing old appliances. The fresh chrome look always makes potential buyers happy!
HOLES IN THE WALL WILL CAUSE HOLES IN YOUR POCKET
This might seem obvious, but that hole you made 5 months ago should be patched and re-painted. For some first time home buyers a $15 job might look like a $1000 job. So, to avoid low offers patch the holes up.
FRESH PAINT MIGHT MAKE YOU A SMALL FORTUNE
One of the best things a home owner can do to raise the value of their home is a fresh paint job. It's important to use natural and warm colors and avoid bright colors. Sorry, that includes baby blue and hot pinks. A fresh paint job is the equivalent to a new car smell. All potential buyers love a newly painted home.
TIP: MAKE SURE YOU CONSULT AND HIRE PROFESSIONALS! NOTHING IS WORSE THAN A BAD PAINT JOB OR THE WRONG COLOR.