Featured Article

  • Thu, Jan 28th 2016, 17:59

    The big error you are making if you are a 1099 employer!

    Most of us work hard... very hard. We run our own businesses or work as contractors, and we get paid in cash, thus getting a 1099. When we look at our annual income, we generate enough to meet our family and entertainment needs. Many of us also keep some money for savings or retirement. We are going really well. However, each year we try to pay as little tax as possible through deductions. The more we earn, the more we want to keep. That's why we don't blame you but understand you. If the law gives you that option, you can use it, can't you?

    But if you want to buy a home, there is a big problem when it comes to reporting too many deductions on your income. And which one is that? Reporting so many deductions when paying your taxes strongly reduces your personal income for that year. When buying a home, the lender pays more attention to your personal income rather than the business itself, and he will require your tax returns for the past two years. After examining them, he will realize that your income might not be high enough to pay off a mortgage. We've seen several examples in which our customers annually earn $100,000 or more, but after all the deductions reported (with the help of their accountants), they manage to prove an annual income of only $10,000 or even less. There is a big difference between what you actually earn and what you report.

    If we put ourselves in the lenders' shoes, we would better understand it. They want to help you to buy a home and know that you generate enough to pay, for example, $1,200 per month for rent. They are required to consider taxes reported; then they'll realize that you "generate" (according to certain taxes) only $833 per month ($10,000 per year divided by 12 months). With such a low income, no lender will lend you money because you will also have to consider other personal expenses like food, transportation, water, electricity, among others.

    If this is your case and you would like to buy a home, we want to give you some tips that will help you a lot. If you follow these simple steps, you will finally buy your house and give your family the home they deserve. Once you have the opportunity to pay taxes this year, let your accountant know yours plans for buying a home. They will understand that reporting too many deductions on your actual income is not convenient when qualifying for a loan. In this way, you will show a higher income, so the lender can determine your monthly installments to pay off the mortgage (home loan). You could ask your accountant to help you amend your last year's tax returns to show a higher income on the last taxes. If you decide to do this (amend last tax returns), you might have to pay taxes for the last year; the advantage is that this allows you to buy a home without waiting another year. Then, you can give your family what you've always longed for: a house that you'll finally get to call 'Your Home'.

     

     

    Comment [0]

  • Tue, Feb 2nd 2016, 19:37

    Inspection Vs. Appraisal

    Inspection vs. Appraisal

    Home inspection is performed to protect the buyer from purchasing a house with structural defects and other major problems. Home appraisal aims to protect the lender from paying more than the house is worth.

    What is home appraisal?

    The bank demands that a property has to be appraised for determining its market value. The lender hires the appraiser, who inspects the home visually to identify those aspects that can increase or decrease its value. In addition, the appraiser takes into account the house's location, its area in square meters, and selling prices of houses similar in size and area. The home appraiser usually addresses evident or observable aspects.

    Unlike a home inspector, an appraiser does not test mechanical systems and appliances. The appraisal helps the lender to determine how much to lend according to the value of the house: what type of loan to offer, how much for the down payment will be needed, and in many cases, what the interest rate will be. The buyer must obtain a copy of the appraisal. Remember that while the lender orders the appraisal, the buyer pays for it, usually within the closing costs. The fee can cost several hundred dollars. A home inspector can save you from making a bad purchase.

    What is a home inspection?

    A home inspector, hired by the buyer, focuses on the "guts" of the house. He or she assesses the general condition, paying attention to mechanical systems —such as plumbing, electricity, heating, and cooling— as well as major appliances. An inspector determines if the house needs repairs and if there is any health or safety problem. A home inspection is highly recommended, though not required in most closing processes. The inspection may cost a few hundred dollars and can take three or four hours. If possible, plan to be present at the inspection.

    Make sure to read the inspection report, which should be exhaustive and easy to understand. It must include all the inspector's findings, along with pictures and diagrams. Remember, however, that an inspection is not a warranty, so there is no guarantee that all the problems of the property will be repaired. Most inspection reports find some areas that need attention, but if the issues are major, you may use the report to renegotiate your original offer for the house.

    Before hiring a home inspector or appraiser, make sure they hold a license issued by the State where they work, as they are required to follow certain regulations. Most, but not all States, require home inspectors to be licensed. Make sure the person you hire is properly experienced and, preferably, certified.

     

     

    Comment [0]

  • Wed, Feb 3rd 2016, 16:48

    Why do you need renters and homeowners insurance

    Comment [0]

  • Wed, Apr 20th 2016, 16:09

    The current challenge: low inventory housing market

    Comment [0]

  • Wed, Apr 20th 2016, 17:27

    Learn how to deal with the low housing inventory

    Comment [0]

  • Fri, Apr 22nd 2016, 20:32

    Multigenerational homes: a new trend

    Comment [0]

  • Fri, May 13th 2016, 21:30

    Using your equity to purchase a second home

    Comment [0]

  • Tue, May 17th 2016, 18:36

    What to expect on closing day

    Comment [0]

  • Wed, Jun 8th 2016, 15:59

    What you need to know before buying a house

    Comment [0]

  • Fri, Jun 24th 2016, 20:07

    Here's the salary needed to buy a median home in 8 metro areas

    Comment [0]

  • Wed, Jun 29th 2016, 18:53

    How do real estate agents charge for selling a house?

    Comment [0]

  • Thu, Jul 7th 2016, 15:17

    Experts You'll Need when Buying Your First Home

    Comment [0]

  • Thu, Jul 7th 2016, 22:20

    7 questions to ask when applying for a mortgage

    Comment [0]

  • Thu, Jul 21st 2016, 19:56

    Think you can’t afford to buy a house? Here are 4 reasons why you may be mistaken

    Comment [0]

  • Mon, Jul 25th 2016, 15:34

    Rents have reached the highest rate in almost a decade

    Comment [0]

  • Thu, Aug 11th 2016, 18:45

    The Different Types of Mortgage Loans in 2016

    Comment [0]

  • Mon, Aug 29th 2016, 14:51

    What is a home inspection and how much is it?

    Comment [0]

  • Thu, Sep 15th 2016, 15:41

    6 tips that will help you pack and move quickly into your new home!

    Comment [0]

  • Wed, Oct 5th 2016, 15:22

    What to Expect When You’re Inspecting

    Comment [0]

  • Tue, Oct 25th 2016, 18:45

    Should You Hire a Home Inspector for a New House?

    Comment [0]