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7 Ways to Find More Time in Each Day

7 Ways to Find More Time in Each Day

There’s no doubt about it, real estate is a demanding career that requires a big-time investment to be successful. Keeping up with client requests, listings, showings, closings, generating leads and the myriad of other tasks you need to accomplish can leave you begging for more hours in each day. How can you manage your work days to be more efficient and productive? Here are some tips:

1. Track your day using a log or time sheet. Even if it’s just for a week or two, write down or electronically record your day’s activities in 15-minute increments from the time you get up until the time you go to bed. Then, look back and see where the biggest chunks of your time are spent and where there may be some minutes each day that you can shift activities to gain some spare time. Notice any patterns that emerge, such as activities that you tend to consistently do during certain times of the day.

2. Think about when you are typically the most productive. For some people, it’s early in the morning. Others may need a few hours to reach their peak energy, and for some the end of the day may be their most efficient time. Whatever yours is, try to schedule the most important or the most taxing activities during those hours.

3. Try to consolidate where you can. Group tasks and activities for maximum productivity. For example, try to return calls, texts, and emails together as much as possible so that you’re not constantly being interrupted throughout the day. Try to handle all appointments and errands in the same part of town to avoid wasted driving time.

4. Tap into your multi-tasking skills. Check listing activity while you wait for appointments. Listen to real estate related podcasts while you drive to stay abreast of industry trends. Return phone calls while you walk or exercise.

5. Take advantage of the technology around you. Set notifications for only the things you need to be alerted about immediately, such as texts and phone calls. Organize the apps on your phone and tablet so that you can access them quickly, and delete those that you don’t use.

6. Take a social media break, and avoid the social media rabbit hole. While social media platforms can help you with leads and building client relationships, they can also be a time drain. Designate a set period each day to post on your social media accounts and to comment on other posts. To keep you on track, consider setting an alarm on your phone to signal when it’s time to move on to other tasks.

7. Team up with professionals who can make your life easier. For example, an American Home Shield® Home Warranty can help transactions go more smoothly as well as help build lasting client relationships. When buyers have AHS® Home Warranty protection and a covered item breaks down, they’ll call AHS and not you about the problem, which can save you time and help you be productive. Your local AHS Account Executive can also help you with marketing tools and other ideas to help you be as efficient as possible.

For more helpful tips, visit the American Home Shield® Home Matters blog.

Zillow Group: Friend or Foe?

Zillow Group: Friend or Foe?

When it comes to Zillow Group, there seems to be a lot of fear and anger in our industry and it has been this way since the company launched in 2004. I experienced this first hand while working on the portal side of the business, starting with Realtor.com in 2003 and leaving Trulia in 2014. What I learned during these years has provided me insight into what the consumer needs and demands, as well as the fears of real estate professionals across the country.

Fear in business can be dangerous and detrimental. Some of us pull old quotes from Zillow executives and use them today to justify our concerns. Have we never changed course in our business or personal lives? Is it wrong for Zillow to shift direction? If the plan is not working, then perhaps the plan should change but not the goal.

One thing is certain: Zillow has never been shy about their goal of giving power to the people when it comes to making the best decision on the single greatest investment of their life. It’s not as complicated as we have made it over the last several decades. Instead of seeing them as a threat, why not look at Zillow Group as a way to learn and adopt what is working?

Yes, you could ignore them or pull your data as a way to fight against them. The reality is Zillow Group has captured over two-thirds of the total market share of online real estate shoppers and has more than double the audience of Realtor.com, the official site of the National Association of REALTORS®. We used to pay at least five times more for this kind of reach in print advertising without any guarantees readers would even flip to the real estate section. And don’t even get me started on TV or Super Bowl commercials.

NextHome’s leadership team understands that change is inevitable, but transformation is optional. And we choose transformation.

We are focused on transforming the franchise model into something fun and desirable; our franchise owners and their offices into a profitable and enticing place to work; and our agents into the most valuable part of the transaction, so there are no objections at closing time when the commission is paid.

We are also focused on transforming our relationship with industry partners, such as Zillow Group, so our agents and franchise owners are one of the first to be called upon when our partners want to try something new.

Especially if it means we can hold Zillow accountable for providing a service that will need to be successful if they want to get paid. And why shouldn’t they? After all, they are consuming all the financial risk to position themselves as the most visited real estate site in the world. How is it any different than hiring Cartus or paying another broker for a referral, except in this case the referring company is Zillow?

Is this a risky move? Of course! But it becomes a shared risk and without risk, there would be no progress. And without progress, we will not transform into the best version of ourselves.

NextHome Sampson Realty opens in Michigan

NextHome Sampson Realty opens in Michigan

Miles Sampson
Miles Sampson

Pleasanton, CA — February 13, 2018— NextHome is proud to announce our newest addition to the franchise, NextHome Sampson Realty. The brokerage represents the sixth location opened in the state of Michigan for the NextHome franchise.

Based in Livonia, the company will be owned and operated by real estate broker Miles Sampson. NextHome Sampson Realty will provide real estate services such as single family residential sales, first-time home buyers, multi-family properties, investment sales and commercial to the areas of Livonia, Plymouth, Northville, Novi, Ypsilanti, Monroe, and the remainder of Wayne County.

With a population of nearly 100,000, the city of Livonia is located 15 miles Northwest of Downtown Detroit.

Sampson has been in the real estate industry since 2007. Starting as an assistant to a high-producing REALTOR®, he handled all details of the transaction from contract to close. With a specialization in streamlining the escrow process, Sampson was a valuable member of the real estate team.

In 2009, Sampson took a role as an Assistant Market Center Coordinator for a local Keller Williams Realty. With responsibilities such as accounting and management of the entire brokerage’s transactions, Sampson quickly learned how to handle dozens of transactions at any given time. While fulfilling, Sampson wanted to take his talents to the sales side.

In 2011, Sampson made the move to full-time REALTOR® and over the next six years, he steadily built a very successful real estate business.

In late 2017, Sampson felt that after nearly a decade in the real estate industry, it was time for him to open his own brokerage. Understanding the value of leverage, he looked to partner with a franchise that aligned with his values and brokerage needs.

“I found NextHome through a simple Google search,” said Sampson. “I loved the consistent branding. Considering I see so many companies not have branding standards, it was really appealing to find a franchise that held the line with this.”

When not selling real estate, Sampson volunteers for Bethany Christian Services, where he works with foster/adopting parents. As an instructor for the foster care skills class, Sampson helps families adapt to provide a home for these children.

Sampson loves spending time with his wife of seven years (and college sweetheart), Sarah. They have a two-year-old son, Elliott. The couple enjoy playing a unique card game with their friends called “Euchre” (pronounced Uke-Er).

Please join us in congratulating Miles and the rest of the team at NextHome Sampson Realty on the opening of their brand new NextHome office in Livonia, MI!

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

Each office is an independently owned and operated business.

 

CMLS 2017: Three Sides to Every Story

CMLS 2017: Three Sides to Every Story

Last month, our CEO, James Dwiggins, traveled to Austin, Texas to attend the Council of MLS Annual Conference. The event was a great place to meet MLS executives and learn about the issues that define the real estate industry. On day one of the event, James took to the stage with Rebecca Jensen, CEO of Midwest Real Estate Data, and Gregg Larson, CEO of Clareity. They had a candid discussion about the industry and how to strengthen the relationships between brokers, agents, and the MLS, so we can better serve an increasingly complex marketplace.

Check out the video below and see what these leaders in the real estate industry are discussing when it comes to the future of the MLS. Tune in to hear the concerns of our CEO regarding consolidation of MLSs, the challenges around a lack of data standardization, and much more.

The NextHome Franchise announces 200th Franchised Location

The NextHome Franchise announces 200th Franchised Location

Pleasanton, CA— August 9, 2017—Real estate franchisor NextHome proudly announces the opening of their 200th office location – Palm Harbor, Florida.

The company’s growth has been unlike anything seen in the real estate industry. NextHome began franchising in January of 2015 and since launching, the company has expanded nationally into 41 states.

“To be able to grow our company from zero to 200 offices in less than 30 months has been an incredible ride,” said NextHome’s Chief Executive Officer, James Dwiggins. “It has been a humbling journey and still having the family feel while building a national network of NextHome agents and brokers has been inspiring.”

“We are looking forward to what the next 30 months has in store for our company,” added Dwiggins.

Key to the expansion has been the work of the sales team, led by NextHome’s Vice President of Sales, Charis Moreno.

“I’m excited about our company’s expansion and how quickly we have grown,” said Moreno. “But what truly impresses me is the quality of the NextHome agents and brokers that have become a part of our company. The best companies are driven by the quality of the people in it.”

Based in Pleasanton, California, NextHome’s headquarters features nearly 20 staff members dedicated to serving more than 1,600 NextHome members nationally. The team, led by NextHome’s Chief Operating Officer, Tei Baishiki, handles more than 8,500 member services inquiries per month.

With NextHome’s highly automated Intranet system, the Member Services team can focus on highly personalized, first-class interactivity with members who are in need of real estate assistance.

New additions to NextHome’s technology platform has substantially increased broker interest in franchising with the company. NextHome’s Chief Strategy Officer, Keith Robinson, focuses on identifying and implementing new products to the NextHome suite of tools. These tools include the integration and connectivity of real estate technology products such as: SmartZip, Ylopo, BombBomb, RealScout, Homespotter, and Spacio.

Once these programs have been added to the franchise’s platform, members are shown the benefits of NextHome services through various live in-person trainings, as well as online webinars. These courses, taught by NextHome’s Franchise Development Director, Mackenzie Baishiki, allow a flexible, yet interactive experience that caters to today’s REALTOR®.

With NextHome’s goal of having offices in all 50 states by mid-2018, the company looks to grow not only in total offices, but also in agent count.

“Our company has seen a pretty significant increase in agent count over the past year,” said NextHome’s Vice President of Business Development, Imran Poladi. “As our brokers get more comfortable and confident in what their NextHome brokerage has to offer, their ability to add talented agents has been exceptional.”

“I remember being in a room just three years ago with a dedicated corporate team who wanted to change the industry. And here we are, just 30 months into our journey and I’m so proud to see our company growing with productive, career-oriented REALTORS®,” added Poladi.

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.

NextHome adds another Florida location with NextHome Heroes Choice Realty

NextHome adds another Florida location with NextHome Heroes Choice Realty

Tina Maples
Tina Maples

Pleasanton, CA— April 28, 2017 NextHome is proud to announce our newest addition to the franchise, NextHome Heroes Choice Realty. The new brokerage is the 26th NextHome franchise location in the state of Florida.

Based out of Crestview, NextHome Heroes Choice Realty will service the local communities of Crestview, Niceville, Fort Walton Beach and Destin.

Owned and operated by real estate broker, Tina Maples, the brokerage will provide sales services for residential, military relocation, first time home buyers, luxury, investment properties & commercial.

Licensed since 2004, Maples started her real estate career after serving in the Air Force at Eglin AFB and over a decade in advertising sales & marketing.

Spending much of her career with the big box brokers, Maples steadily built a phenomenal sales career from past customers and referrals. Her dedication included lots of hard work going above and beyond for her customers. This wasn’t an issue for Maples, as she finds client service to be the most rewarding part of her job.

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Bidding Wars: Top 5 Ways to Deliver a Winning Offer on Your Dream Home

Bidding Wars: Top 5 Ways to Deliver a Winning Offer on Your Dream Home

You finally found the home of your dreams. Trouble is, you’re probably not the only one vying for that property. Low inventory + appealing mortgage rates = a sizzling hot market. If you want your offer to rise to the top, you’re going to have to bring your A-game. Here’s how:

1. Get Pre-Approved

Now. (Seriously!) A mortgage pre-approval means you know how much home you can afford and allows you to make an immediate offer when you find “the one.”

“It shows the homeowner that you’re serious, which is what they are looking for,” says Amy Jurek, a real estate professional with RE/MAX Advantage Plus in Minneapolis/St. Paul.

2. Don’t Lowball

Don’t be “that guy” who wants to make a deal. “In a bidding situation, you will likely only have one chance to get it right, so make your first offer the very best offer that can work within your budget,” Jurek advises.

3. Flaunt Your Stuff

Adding a cover letter—or “love letter”—to your bid can allow the buyers to picture you (and only you!) in their cherished home. Tell the seller what you love about their home, whether it’s the kitchen where you’ll be entertaining or the amazing garden you will carefully tend. “The seller wants the home to go to someone who will love it as much as they do, so help them picture you making your own happy memories there,” says David Feldberg, broker/owner of Coastal Real Estate Group in Newport Beach, Calif.

Feldberg suggest you even take it a (selfie) step further. “Include a photo of yourself and your family—pets, too.”

4. Have Your People Call Their People

Sound old-fashioned? Here’s why it works. Talking with the listing agent will allow your agent to get the real scoop on the property, most notably if there are other offers and if they’re above asking price, says Realtor Victor Quiroz, sales manager for Berkshire Hathaway HomeServices California Properties in Covina, California.

The more your agent knows, the better insight he or she can give you into writing a winning bid. “It’s easy to forget our smartphones have the ability to make calls too, but a call provides immediacy that texting or emailing lack,” he says. That’s key so you can get that offer in, stat.

It also helps to work with a local agent who has strong connections to the area where you are buying. An out-of-area agent won’t have the relationships you need in a multiple officer situation.

5. Make It Easy to Choose You

If the seller has multiple offers, they’ll likely dismiss one that’s not complete, says Feldberg. They want a quick, easy sale; so double-check that your offer includes loan approval, proof of funds, that love letter, and any other documentation that will show the seller you are willing and able to buy the home. Finally, offer to work within the seller’s time frame, whether that means being willing to work around a quick closing, or offering flexibility to accommodate a seller’s desired move-out day, suggests Jurek.

4 Lessons March Madness Can Teach About Homebuying

4 Lessons March Madness Can Teach About Homebuying

For college basketball fans, March is an all-encompassing, schedule-rearranging, emotional roller coaster. “March Madness” doesn’t just take over your free time, but your news feed, work conversations, and of course, that anguished bracket.

If you’re considering buying a home, be prepared for the same kind of excitement. Settle in and get ready for the ride of a lifetime. Here are four lessons potential homebuyers can learn from March Madness.

1. You’re going to be surprised.

Nearly every year, Americans fall in love with some small college basketball team that unexpectedly upsets a traditional winner. Maybe it’s Austin Peay State University, Middle Tennessee State, or some other little-known team who comes from behind and wins the hearts of fans. Similarly, you may assume you know exactly what you’re looking for in a home, but by being open-minded, you may fall in love with something else entirely. A new construction home with all the bells and whistles may be tempting, but the updated bungalow with a large backyard and mature trees may offer the charm and personality you didn’t even know you wanted.

2. The final number is all that matters.

A basketball team doesn’t get extra points for being ranked higher than its opponent, or for being up by 20 points at halftime. All that really matters for advancing in the tournament is what the scoreboard says at the final buzzer. In the same way, your mortgage provider may have advertised a super-low interest rate last year when you started looking for houses, or even last week. But if you haven’t locked it in, that low rate will not be your rate. The only one that really matters is the lowest one you can get when you’re actually ready to buy the home.

3. There’s no substitute for effective coaching.

Any team can have a standout player for a couple of years who leads them to a strong, if not amazing, showing in the tournament. But the teams who build legacies for always performing well, year after year, aren’t riding on one or two great players. They are led by a great coach who knows what his players need and how to communicate it to them, year after year. Like in basketball, you’ll have a better chance of mortgage success if you have an informed, experienced advisor.Mortgage advisors are knowledgeable about a wide variety of mortgage types and can guide you in finding the mortgage that will work best for your particular situation.

4. Always expect the unexpected.

Your March Madness bracket is completely theoretical. Every game results in another winner and another loser, changing the eventual outcome of the tournament. Similarly, the mortgage process can have stops and starts, changing closing dates and requests for additional information. You can handle the process best by being flexible, preparing to respond to requests promptly, and taking changes in stride. Every provider has different timeframes so make sure they can work with what you need.

When the tournament ends, the team that stands tall gets a trophy—and when you stay committed through the mortgage process, you get the house you wanted for the loan that works best for you.

Back To Basics: Mortgage 101

Back To Basics: Mortgage 101

When you start the home financing process, it is easy to get overwhelmed. Making one of the biggest financial decisions of your life deserves more than a trial and error education. In school, you learned your numbers, then algebra, and eventually probability and statistics, but personal finance was probably not on the list. It simply isn’t taught.

If you’re just starting the process of shopping for your mortgage (yes, shopping for it) here are a few basics to get you started:

Get up to speed on your lingo and your letters…

There is a unique language in the mortgage industry and you need to translate it fast. LTV, ARM, HELOC, APR … if you feel like you’re swimming in acronym soup —we understand.

Here are a few of the most important (and often used) terms you can learn right now:

  • ARM: Adjustable Rate Mortgages are those in which the interest rate paid on the balance changes according to certain benchmarks.
  • LTV: This is the loan-to-value ratio. It is a risk-assessment ratio used by lenders that compares the amount you’re borrowing to the value of the property.
  • APR: The Annual Percentage Rate gives you the cost of the money you’re borrowing. It reflects the amount you’re borrowing plus things like points, fees and other charges.

Get up to speed by brushing up on mortgage lingo with these helpful articles: Don’t Swim in Acronym Soup: 12 Mortgage Terms Translated and Decoding Mortgage Acronyms.

How important is your credit…

Remember that time you maxed out your credit card on that last minute getaway with your friends or partner? Bet you weren’t thinking about applying for your first mortgage then. Your credit score is the lender’s compass for how financially responsible you are —and whether or not you can handle more debt.

Here are a few credit score facts to keep in mind:

  • 580 is the minimum for an FHA low down payment loan
  • 620 is the minimum for most conventional programs
  • 740 is the magic number most experts will suggest to get a good rate
  • 780+ puts you in the absolute best position to get the lowest rates available

The Fair Credit Reporting Act (FCRA) requires each of the 3 nationwide credit reporting companies – Equifax, Experian, and TransUnion – to provide a free copy of your credit report once a year. You just have to ask. To order, visit annualcreditreport.com or call 1-877-322-8228.

If your credit score could use some help, check out our tips to fix mistakes on your credit report.

How to know what loan is best for you

There are so many different loan types and programs available to today’s homebuyers. From VA and FHA loans to Adjustable Rate Mortgage (ARM) and fixed rate, what’s right for you? Selecting the mortgage that’s best for you is a crucial part of the homebuying process.

A few key things to think about:

Do you see yourself living in the home long term or short term? Are you planning on expanding your family size and will need more space? Will you be relocating or downsizing?

If the answer is long term, a 30 year fixed will likely be a good fit. For many first time homebuyers who plan to start small and upsize later, a shorter term ARM will give them more buying power to get in the market.

If you are a veteran, VA loans allow you to do 100% financing with no down payment. If you’re not a vet but still need lower down payment solutions, there are a number of options including conventional loans with as little as 3% down and FHA loans with a low 3.5% down payment. If you have less than 20% for a down payment, mortgage insurance may be required. With conventional loans it can be canceled when the loan balance reaches 80% loan-to-value (LTV), with FHA loans, the upfront mortgage insurance and monthly mortgage insurance that cannot be canceled). When you’re ready to select a loan program, Sindeo will walk you through all of the different options and what total costs will be over the life of the loan.

What kind of property will you buy? Typically condos with a 20% down payment with higher interest rates than single-family residence; investment properties typically require more down payment and higher interest rates than primary residence

When to lock in your rate …

You might not pay a lot of attention to interest rates, but when it comes to your mortgage they’re crucial. Even the smallest fluctuation can mean you pay thousands more over the course of your mortgage’s life.

Typically, when you lock your rate, you are protected from rising rates, but you are also locked out of improved rates. Typical locked periods are 15 days, 20 days, 30 days, etc. The shorter the period, the better the rate/pricing, but if you don’t close on time, rate extension costs are very expensive. Make sure the lender is comfortable closing within the locked period prior to locking.

How to know when to lock in your rate?

If you’re buying a home, the earliest you can lock your rate is when you have a ratified purchase contract.

  • If you’re buying a new construction home, the earliest you should lock is at least 30-45 days prior to project completion.
  • In volatile market conditions or in a rising rate environment like today, it’s safer to lock as soon as you can.
  • In a low rate environment, you can float your rate and watch the mortgage market, and lock in a shorter period when you get closer to closing.
  • Check with your lender on how long it will take to close prior to locking. A longer rate lock is more expensive.

What’s involved with closing costs

It might sound small with the amount you are already spending, but all the costs add up and you deserve to know what’s included. How do you know if they’re calculated right? Have you saved enough? Can the seller contribute?

Closing costs vary from lender to lender, but range from about 2-5% of the purchase price of the home. Always ask for the Loan Estimate and use the Annual Percentage Rate (APR) to compare rates and true closing costs between lenders. The APR takes into account both the interest rate and the loan costs like origination fee, discount points, credit report, appraisal, etc. The Loan Estimate gives you a breakdown of the loan costs and other costs.

Can you really shop around for a mortgage?

Did you search Amazon before you bought your coffee maker? Browse Yelp for the best Pad Thai in town? Now, you can shop for your mortgage and save thousands over the course of your loan.

With SindeoOne, you run your credit only once, and you can shop over 1,000 loan programs with 45 lenders with a single application that often takes less than 5 minutes to complete. Remember, multiple hard credit inquiries after 30 days can hurt your credit score.

New Year, New Me: How to Become a Qualified Homebuyer

New Year, New Me: How to Become a Qualified Homebuyer

Buying a home in the new year? Whether this is your first go-around or you’ve purchased before, there are steps you can take to make sure you’re a qualified homebuyer —and being a qualified homebuyer is the key to getting the best deal you can on your mortgage.

Remember the 4 C’s as you get started: Cash, Credit, Capacity, Collateral. Here’s more:

CONSIDER YOUR CASH

Often referred to as “Capital,” the amount of cash you have can make or break a mortgage deal. But, your ability to become a qualified homebuyer doesn’t only depend on how much is in the bank —it’s also about where the money came from and where it’s going.

Here are a few tips when considering your cash:

#1. Save for a Down Payment
The bigger the down payment you make, the more likely mortgage providers are to approve you at a great interest rate. For most conforming loans, a down payment equal or greater to 20% of the purchase price is required, but there are some programs (like FHA and VA loans) that will allow for a smaller down payment. Learn how some new are homebuyers working with a lower budget for a downpayment here.

#2. Don’t Forget Closing Costs
Most mortgage professionals agree that closing costs are typically equal to 2-5% of the home’s purchase price. As with your down payment, your mortgage lender will want to verify you have the funds to cover these expenses. It’s important to understand how to save and calculate closing costs before you dive in.

#3. Manage Gifts
If you’re accepting a cash gift from a family member as part of your down payment, make sure this is well explained and documented. Your bank statements will be reviewed for any large deposits (anything over a few hundred dollars), and any unusual deposits could derail your ability to be a qualified homebuyer.

CATAPULT YOUR CREDIT

Also referred to as “Character,” your credit is your history of debt repayment and credit score. In most situations, 580 is the minimum for a low down payment FHA loan, while 620 is the minimum for most conventional loan programs.

Here are a few tips when trying to catapult your credit:

#1. Review Your FICO
Most lenders will request your FICO score from the three credit reporting agencies, but will then toss out the high and low score to use the middle for assessment. Before shopping your mortgage, make sure you have a clear picture of your FICO score and that your report is free from errors.

#2. Improve Your Score
Not everyone has perfect credit. In fact, the U.S. average is 687. If you’re trying to up your creditworthiness to become a qualified homebuyer there are some simple things you can do —from paying down debts to making on-time payments— to see some positive increases.

CREATE THE CAPACITY

Your “Capacity” is your ability to make monthly payments on your mortgage and to repay your loan over time. Lenders will look at your income to determine if you have the capacity. Here are two of the big ratios they will look at:

#1: Calculate Your Housing-to-Income Ratio
This number is what percentage of your gross monthly income (verified via pay stubs, W2s, tax returns and other documentation) will be spent on your monthly housing expense. Your total housing expense includes principal and interest, property taxes, homeowner’s insurance, and any mortgage insurance and homeowner’s association dues. To get the best terms, you want this number to fall below 30%.

#2: Keep Your DTI Low
Your debt-to-income ratio is called the “back-end ratio” and is the percentage of your gross income spent on housing (like above) plus your other monthly expenses. These additional expenses could be credit card payments, student or car loans, or any other debts. Child support and alimony are part of this equation. In most cases, you cannot qualify for a mortgage with a DTI of more than 43%. How can you figure out where to start on debt-to-income? Read up on how much house you can afford.

CHECK THE COLLATERAL

Regarding the home being purchased, the collateral confirms to your mortgage provider that they have a way to recover their losses should you default. To ensure the collateral is worthy of the loan you’re taking out, there are a few ways the lender will “check the collateral.”

#1. Get an Appraisal
Your lender will almost always require an appraisal to ensure the amount loaned does not exceed the value of the home. An independent appraiser will consider factors like recent sales, a home’s location, its condition and other factors. If the appraisal comes in below the purchase price, the borrower will only be approved for the lower amount.

#2. Get an Inspection
The inspection will help your lender determine the condition of the home and that it is safe and structurally sound. While this inspection is not always required, it is strongly recommended.

Putting it into Practice
When it’s time to shop your mortgage, reach out to a Sindeo Mortgage Advisor. With the recent release of SindeoOne, homebuyers can shop and compare over 1000 loan programs by filling out a single application in just 5-minutes. You’ll find the best deal for your specific situation in no time! Connect today.