Washington

Spokane, Washington Home Buyer asks "What is DTI?"

03-12-12

Jack Tenold Home Loan Specialist Purchase, Refinance & Reverse Mortgages

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Office: (509) 623-1623 x1

Mobile: (509) 710-2227
Secondary: (800) 617-3105

Spokane, Washington Home Buyer asks “What is DTI?”

homes for sale In Spokane, Washington and across the nation, first time home buyers sit anxiously across the desk from a mortgage specialist who tells them whether or not they qualify for a home loan. Do I qualify? How much do I qualify for? Knowing the lingo about home loans isn’t intuitive and it isn’t totally about credit scores.

There is another issue – it is DTI which is Debt- to- Income- Ratio. The calculation is based on your numbers – income and obligations.

What is DTI? It is the comparison of your monthly take-home income and your monthly obligations to creditors. Which creditors? Your major creditors like automobile payments, student loans, credit cards, rent, alimony, etc. Day-to-day living expenses are not included.

Here’s an example but use your numbers to get an idea of your debt-to-income ratio:

$1850 mo/expenses divided by $4000 mo/income = 46%

46% is the DTI

Anything above a 44% makes it harder (but not impossible) to qualify for a mortgage. So, before you shop for a new home, you need to know if you can afford a mortgage and how much of a mortgage.

Owning a home is not the same as renting. The landlord pretty much takes care of the repairs and maintenance on a rental but when you assume home ownership, you assume the upkeep including painting, landscaping, and repairs which become additional out of pocket expenses and impact your cash flow. And….those pesky monthly expenses continue. Only you—and your underwriter—know how much you can comfortably afford to pay each month.

Every lender determines its own guidelines regarding allowable DTI ratios for new loans and refinances. The type of loan also determines the allowable DTI. This is why a good mortgage broker will explore several opportunities and assist you in determining whether an FHA (government) loan or conventional loan is right for you. Lenders want to know if you will be able to meet your monthly payments as well as have the ability to repay the loan. The counsel of an experienced loan officer can make all the difference.

So now you know the definition of DTI in Spokane or anywhere. But to learn more call a reputable mortgage broker WHO WILL PRE-QUALIFY you based on several criteria. Visit www.bills.com/debt-to-income-article/ for even more information.

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"Looks Like a Storage Closet to Me..."

03-12-12

Diana Young

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Office: (425) 776-7890

We have been busy staging lots of Seattle area condos lately. Some of these have what is described as a "den" or "home office". Unless these petite rooms are staged, to potential buyers these spaces look like a storage closet!

Don't sell yourself short when marketing your condo...every square inch of usable space will add $$$ to the offers you receive.

This is what I'm talking about:

Den before staging:

Den after staging:

Some other staged "dens" -

Staging by SISTERS Interior Redesign, Edmonds, WA, 425.776.7890, sisters@sistersredesign.com

Photography by Rick Landreth, Edmonds, WA, 206-914-0194

Give your listing the advantage of professional staging and photography. Contact us today for a complimentary quote. We look forward to working with you!

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Will Fewer Babies Born Affect the Housing Market?

03-12-12

Chris Farkas

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Office: (360) 312-5919

Mobile: (360) 393-0793

Long Road to Recovery

Despite encouraging signs of a recovering market, economists and industry experts predict that the the dark cloud hovering over the housing market has yet to move away. “Real recovery remains far from reality,” according to a Washington Post story. So, don’t be misled by improving numbers.

CLICK HERE to read the entire article.

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How to Negotiate: 7 Clever Home Buying Negotiation Tactics

03-12-12

Chris Farkas

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Office: (360) 312-5919

Mobile: (360) 393-0793

Getting the house you want at the price you want can be tricky – even in a buyer’s market. Sometimes a home seller just isn’t willing to budge on price. Don’t despair! There are other ways to sweeten the deal and drive it to close in a buyer’s market. Here are seven tips on how to negotiate with a home seller.

CLICK HERE to read the entire article.

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Should I Sell or Rent My Home? A Quiz to Help You Decide

03-12-12

Chris Farkas

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Office: (360) 312-5919

Mobile: (360) 393-0793

To sell or to rent. It’s a tricky question, especially in a down market. If you are relocating or just ready to move on from your ball and chain of a house, renting might make more sense than selling. Here is a quiz to help you decide whether you should sell or rent your home.

CLICK HERE to read the entire article.

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