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Published by Silva Finance Group, 2016-04-26 10:16:57

homefit.1.

homefit.1.

1

Letter from the Editors

John Silva- Sr. Mortgage Loan Officer In this issue, we will touch on a lot of consumer-oriented subjects
NMLS#1101193 regarding the sale and purchase of real estate.
Cell: 713 443-2412
Office: 214 301-7081 As the housing market continues to rebound, real estate agents and
Fax: 214 279-3341 their clients still face issues of financing, pricing and strategies for
[email protected] showing their homes.
www.ifinanceyourdreamhome.com
In this issue, we will cover details about how a buyer or seller should
choose a real estate agent to represent them and what questions
should they ask their potential agent to ensure they are both on the
same page.

We will touch on how a first-time homebuyer can proactively prepare
for acquiring a mortgage to finance their starter home, the type of
credit reports needed, what factors affect their credit scores, what
steps can they take to repair their credit and if it needs to be repaired.
Also, the documents expected to gathered and presented to a loan
officer.

For sellers, we’ll examine home improvements and decide which
come closest to paying for themselves, or if any of them do. We’ll also
offer sellers a list of repairs they should make before even considering
putting their house up for sale.

Finally, we’ll share some professional staging secrets with sellers that
will ensure that they’ll be able to show their properties in the best
possible light.

We hope you find this issue as informative and fun to read as we did
writing it.

Feel free to contact us if you have questions or would like your friends and
family added to our distribution list.

2

CONTENTS

4. What to Fix In and Outside
Your House before Selling

6. How to Choose the Perfect
Neighborhood

8. 3 Proactive Steps First-Time
Homebuyers Should Consider

10. First Time Home Buyers
Fulfill Dreams with the Right
Mortgage

12. 6 Powerful Home-Staging
Secrets the Pros Use

14 Found the Perfect Home –
But Furniture Won’t Fit!

15. A Bit About Mold

This magazine is published monthly. Entire contents are copyright protected under law where applicable. All Rights Reserved.
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3

What to Fix In and Outside Your
House before Selling

If you’ve decided to sell your house If your house doesn’t have siding something that is in fair shape but
then the next step you take is to and it hasn’t been painted in a few just needs to be scrubbed.
make some improvements to its years, consider putting on a new
exterior and interior. coat or two. This should include For example, sometimes bathtub
painting your front and garage faucets can be spotted, dull and
Professional home stagers say this doors. grimy. That’s the time to clean and
is the only way to ensure that your polish them, resurrecting their
real estate agent will be able to Inside Improvements Will original shine and beauty.
sell your property in a reasonable Boost Its Value
amount of time for the price that As with the exterior of your home,
it’s worth. Again, inside cosmetic a coat or two of paint can cover
improvements can help you get up blemishes and accentuate the
You’ll want to plan and complete top dollar for your home. You architectural lines of your dwelling.
these improvements before your should focus on improving the It’s not unusual for those putting
home is listed and you’ll want to first impression a potential buyer their homes up for sale to have
do it without spending overboard. gets when they enter it. If the tile second thoughts after sprucing the
in your foyer is dated or cracked, old place up!
First Things First replace it. However, don’t improve

In real estate, as with so many
things in life, first impressions
are everything. That’s why the
first thing you should focus on
improving is how the outside of
your house looks, commonly
known as curb appeal. That’s
because the exterior of your
property is the first thing a
potential buyer sees.

Cosmetic touches such as making
sure your lawn is mowed and your
shrubbery is trimmed are a must.
If your house has siding that is
weathered you should invest in
getting it pressured washed. Some
companies advertise that they will
pressure wash any house for just
$199. Or if you want to save some
money and you have the time, you
could rent a pressure washer. It
goes without saying that if there is
any siding missing, it should also
be replaced.

4

Super Clean Bathrooms and 3 Tips to Get You
Kitchens Started with the Outside
of Your Home
Cleanliness is something a
potential buyer will see, smell and 1. Go stand on the street to see 3. Don’t forget the backyard.
notice throughout your home, but what clients see when driving up While that might not be part of the
especially in the bathrooms and to the house. Be aware that any potential buyers’ first impression,
kitchen. As a result, home staging negative impressions they get you still should make sure it’s in
experts recommend thoroughly outside the house (landscaping the best condition possible. Pull
cleaning your entire house, not maintained or non-existent, up weeds, water plants, do some
but cleaning the kitchen and peeling paint, etc.) is just going sweeping (if that’s applicable) and
bathrooms with bleach. They also to make them think that the maybe purchase new furniture
suggest fixing any dripping faucets house itself has not been well or accessories (plant pots, bird
because they are a major turn off taken care of. So even if you have houses, etc.).
to potential buyers. So do repair spent the time and money to fix
them if you have this problem. up the interior, it would all be And the biggest tip of all? Imagine
Sadly, it’s often such little things wasted if the clients get a bad first yourself as a potential buyer
that can kill a sale. impression as they drive up to the looking at your property for the
house. first time. What impressions are
Say Goodbye to Clutter you getting? Would YOU buy your
2. Next, step outside your front house? What would you like to see
Finally, improving the appearance door and close the door; then changed before you put an offer
of your home so it will show at stand on the stoop and look on your house?
its best can sometimes be an around for 5 minutes. While the
exercise in subtraction rather than real estate agent is searching for Proper staging helps you sell
addition. Staging professionals say keys and trying to open the door, your house in a shorter time and
clutter is the No. 1 reason potential the clients are standing behind potentially at the price you want.
homebuyers reject some of the and looking around. So what are
most pristine properties they’re they seeing? Dead plants, old
shown. Clutter is insidious because Halloween decorations in the
it happens slowly over the years middle of January, cobwebs?
and finally forces home sellers
to remove or pare down some of It’s definitely worth it to take some
their favorite pieces of furniture time and clean it up. Want to go
and decorations. It also forces a step further? Try a new coat of
them to get rid of the junk that’s paint or some new furniture or
been accumulating over the years accessories.
in their garages, basements and
especially their closets. But get
rid of it you must, if you hope to
sell your house for a high-market
price.

If you follow these suggestions,
experts say you can expect your
property to stand out from the
rest, sell at a good price -- and do
so in a reasonable period of time!

5

How to Choose the Perfect
Neighborhood

Whether you’re a first-time If you have children, or are even give the education reporter
homebuyer or getting ready to planning to, the quality of a a call. You’d be surprised how
sell your house and upgrade to a prospective neighborhood’s many of them will be glad to give
larger property, choosing the right schools should be a major factor you their opinions of the state of
neighborhood to move into should in making your choice. You education in the area they cover.
be your first consideration. can contact the local school Finally, you can contact the local
board in the neighborhood’s Parent Teacher Association (PTA)
While different people may seek jurisdiction and obtain the latest and get both the pros and cons of
various amenities and aesthetics as stats on how the average student the education system in the area.
part of their neighborhood search, in the neighborhood scores Members of this organization also
there are certain factors everyone on national proficiency tests. can tell you if the schools have
should consider before making a You can then compare them sufficient room, or if they are
final decision on where to move. to scores of students in other overcrowded.
areas. This stat often mirrors
Important Factors the quality and effectiveness of Traffic and Future
education available in a particular Development
Before you move into a particular neighborhood.
locale, you should check the When choosing a new
crime stats of the neighborhood. Education Budget neighborhood, quality-of-life
This can be done online using issues such as traffic and potential
various websites that breakdown You can also get an idea of crowding have become important
this critical information by zip the quality of education in a factors in making a decision. Let’s
code. In some jurisdictions, local neighborhood by comparing the face it, no matter how pristine a
police stations can give you this budget allotted by local officials to neighborhood is, if you have to sit
data. Suffice it to say, even if a the area compared to other areas. in gridlock for a significant amount
neighborhood looks beautiful on Another source of information of time before you can reach
the outside and there are plenty is the education section of your front door, it might not be
of houses to choose from, if you community newspapers covering the area for you. The easiest way
find that burglaries and car theft the neighborhood. It wouldn’t to discover the traffic volume in
is skyrocketing there, it’s time to hurt to look them up online and a neighborhood is to get in your
move on.

6

car and drive around it at peak considering a neighborhood that is Rising Property Values
morning and evening rush hours. in store for major development in
If it’s easy to drive from place to the next couple of years, you really Finally, before you choose a
place, then you have a winner. need to weigh this factor in your neighborhood to move to, you
If not, then you might decide to decision. should also examine whether the
cross the neighborhood off your property values are trending up or
list. Proximity to Schools, Stores, down. You can easily check recent
Hospitals and More property sales online to find this
If a neighborhood you’re interested out, or call your real estate agent
in is already fairly built out, it Another important consideration and have her run the numbers. This
makes sense to research whether in choosing a neighborhood is the is an important factor in case you
there are any major development proximity of your new home to decide to sell the property in a few
projects in the wings. This can be schools, hospitals, stores, parks years.
done by visiting the local planning and airports. If you have a family
board’s website, or visit in person. member who is disabled or sick, The point is to take your time
Although it’s not a given that all it makes no sense moving into a and carefully research each
proposed developments will be neighborhood that is far from the neighborhood on your list of
approved, a majority of them do best medical facilities. If you are perfect neighborhoods until you
make it from the drawing board an avid runner you probably want find the one that most closely fits
to completion. So, if you are to choose a neighborhood that your needs.
is close to a park with a running
trail. While some neighborhood
associations take pride in the fact
they’ve managed to block zoning
changes that would allow a local
convenience store, if you like to
grab a hot coffee everyday on the
way to work, then you have to
take this into consideration before
buying a home in a neighborhood
that bans stores.

7

3 Proactive Steps First-Time
Homebuyers Should Consider

There are specific steps a first- to mortgage-finance experts. So, take the necessary steps to have
time homebuyer can take before if you want a good idea of what them corrected. You should also
entering the real estate market your chances are of obtaining look for any unpaid or collection
that will greatly improve his or her such financing, you should first accounts. If there are any unpaid
chances of getting financing and order a credit report from each of or collection accounts you should
being able to purchase a starter the three credit bureaus, Equifax, settle them immediately, or set up
home. Experian and Transunion. Just some sort of payment plan. At the
use one of the many online credit very least, this will show that are
Here are three proactive steps monitoring companies that provide willing to pay your debts.
you should consider taking before the reports, as well as your current
you contact a real estate agent or credit score for a small fee. A copy of your credit report will
mortgage broker: also show all of the credit you have
2. Repair Your Credit available in relation to your credit
1. Check Your Credit Score lines. This is something lenders
Once you get the reports you consider carefully before making
If there is a single factor that can should carefully examine them to a loan. It’s known as your credit
help or hurt your foray into the make sure there are no mistakes. utilization rate. For example, if
world of financing a new home If there are any errors, you should you have total credit availability
it is your credit score, according contact the credit bureaus and on your credit cards of $30,000

8

and you owe $20,000, then your The exception to this rule is the
credit utilization rate is 67 percent. documentation lenders require
This rate has a great effect on your of first-time homebuyers who
overall credit score. The lower the are self-employed or are in
percentage, the higher your credit commission sales. If you fall into
score will be, vice versa. one of these categories, you
should be prepared to produce
According to industry experts, a up to three to four years of W2s.
good credit utilization rate for a Lenders are looking for steady
first-time homebuyer is less than income and to make sure your last
33 percent. If your rate is higher two years or earnings were not an
than this, you will have to make a anomaly.
serious effort to pay off as much
debt as possible and satisfy any While taking these steps may seem
unsettled notes. On average, it like a lot of work, getting your
takes about six months to improve credit score, working to improve it
your credit score. and gathering your documentation
will greatly increase your chances
3. Get Documentation in of acquiring a mortgage for your
Order first home when you are ready to
buy.
As we mentioned, today more than
ever, mortgage companies by law
are requiring documentation of a
potential borrower’s income and
taxes. The day of the so-called
no-doc loan, where no such
documentation was required,
is gone. In general, a mortgage
lender will ask a first-time
homebuyer to produce two recent
pay stubs and the last two year’s
W2 forms in order to apply for a
loan. In addition, the lender will
require the applicant to provide
two months of bank statements.

9

First Time Home Buyers Fulfill
Dreams with the Right Mortgage

When it comes to mortgages, it’s agencies provide you with a free that are on your record in error, and
important to find the right loan annual credit report. so forth.
officer.
Reviewing these reports will not Having someone help you navigate
You want to work with someone only provide you with your credit through the maze of credit reporting
who can find the type of mortgage rating, but will alert you to any is extremely useful even if your
that is right for you, whether you’re misinformation or errors contained credit isn’t pristine so you can still
seeking to buy a new home or in your report. apply for a mortgage.
refinance your existing home.
Bad credit mortgages come with Fulfilling Your Dreams
The right loan officer takes pride higher interest rates so it pays to
regarding his or her customer clean up your credit before buying With the right mortgage, first time
service so your experience will be a home. home buyers can truly own a piece
more personalized. of the American dream.
A good loan officer will offer credit
What if Your Credit is Less improvement ideas, or refer you It’s enormously satisfying to pay a
than Ideal? to a service to help you repair your mortgage payment instead of rent
credit prior to obtaining a loan. every month, knowing that you’re
Before you go to a lender, you building equity. That equity lays a
should check your credit rating. This may involve setting up foundation for your financial future
Federal law requires that each of payment plans to existing and that of your children too giving
the three major credit reporting creditors, challenging bad reports you peace of mind.

10

10 Tips to Buy Real
Estate without Breaking
Your Budget

1. Get pre-approved for your home loan
2. Explore creative financing options
3. Sell your existing home first
4. Look for vacant real estate
5. Consider cosmetic fixers
6. Buy a major remodel project
7. Don’t discount bank foreclosures
8. Buy land with a manufactured home
9. Purchase an older, smaller home
10. Buy the cheapest house in the best neighborhood

11

6 Powerful Home-Staging
Secrets the Pros Use

The art of staging a home so it will of your walkway will do much 3. Stylize Your Plain Dining
have the most appeal to potential to make your house sparkle as Room Table
buyers is something anyone can will porch lights kept on when a
do, if they just follow the example potential buyer drives by at dust or A bare dining room table is a little
of professional decorators. at dawn. like a black hole. It is unfriendly
and tends to suck the positive
Here are six staging secrets 2. Make Your House Spotless energy out of anyone who passes
that you can use to make your But Lived-In by it. The pros say decorating such
house stand out and capture the a table with an assortment of small
attention of potential buyers: While it’s critical to keep your colorful arrangements will breathe
house super clean and spotless life into an otherwise dreary dining
1. Dress Up Your Porch when it’s being shown, you chamber.
don’t want it to appear sterile or
Whether you have a large porch unpopulated. After all, a house 4. Closets Wide Open
or just a few steps in front of your is a place where people live.
house, adding a new doormat and Professionals use a few fresh Professionals say you should
a few exotic flowers or plants can flowers in vases or a basket of open closets wide after you have
help make your home stand out. produce to make a house look thoroughly cleaned and removed
A nice porch can come alive with lived in. A few lemons on a cutting any clutter. By doing so, you create
just a couple of pieces of outside board in the kitchen is also not a a feeling of spaciousness and
furniture, while a few strategically bad idea. you’re declaring affirmatively that
placed solar lights on either side there is larger closet space.

12

5. Install a Pedestal Sink to Busting the Myth That
Create the Illusion of More Home Improvements
Space Pay For Themselves

If you have a tiny bathroom that’s For years, homeowners cherished Here are the payback percentages
cramped and makes you want and embraced the myth that on some popular home
to scream, imagine the effect it expensive renovations and improvements:
might have on a potential buyer. improvements to their homes were
One possible and inexpensive fix great investments that would more • Garage doors only paid back
the pros use is to remove the big, than pay for themselves in the long 71.9 percent of their cost when
old sink in your tiny bathroom and run by adding to the overall value the house was sold.
replace it with a small pedestal of their properties when they were
sink and decorate it with a few sold some day in the near future. • Steel Entry doors only paid
red roses. The result is the optical back 73 percent of their initial
illusion of much space and style, Many major home improvement cost.
transforming the bathroom from a contracts have been signed and
liability to an asset. justified by this financial myth. • Built-in, back-up power
generators only returned 47.5
6. Use Art to Draw People In Remodeling and percent of their cost at the sale
Improvements Equals Poor of a property.
Unfortunately, many prospective Return
homebuyers tour a house with • Popular additions such as a
blinders on. It’s almost as though According to Remodeling sun room only returned 45.9
they have tunnel vision. How in the Magazine, over the last decade, percent of their original cost.
world can you get them to explore payback on the average
the entire depth and breadth of remodeling job has fallen from 82 *Remodeling Magazine
your home? Professional stagers percent in 2003 to 57 percent in
use a piece of artwork hanging at 2013.
the top of the stairs, or a colorful
vase near the back of the house
to catch the eye of prospective
buyers. Such a strategy gets them
to view the house in its blissful
totality, rather than segmenting it
into little chucks.

13

Found the Perfect Home –
But Furniture Won’t Fit!

You’ve been looking for a home Give It Away? Evaluate and Decide
and you’ve found one that feels
almost perfect. The location is Maybe the problem is that you Don’t turn down the idea of
convenient and you can picture have a bed that’s too large for any purchasing a home you’d really
your family living here happily. of the bedrooms in the “almost enjoy simply because some of your
However, there’s a problem. One perfect” house. Is it a Sheraton tall furniture won’t fit.
or more pieces of furniture you’ve post field bed with canopy or a
had for years just will not fit. Do massive Victorian piece that’s been Ask yourself questions about the
you buy the home anyway, or keep in the family for generations? possibilities. When you come up
looking? Do you love it, or might another with answers you like, you’ve made
family member with larger rooms your decision.
Move It? and taller ceilings be very excited
to get it? Who knows, another family
Suppose the piece of furniture member or a stranger shopping for
that won’t fit is a tall chest- Sell It? a special piece of furniture could
on-chest that’s always been in be delighted with your decision,
your bedroom. Could you use Maybe the offending piece of too!
it in another room? Might it be furniture has monetary value, but
handsome and useful in the living has no sentimental value. Why not
room or dining room? (Rooms just sell it? There’s no need to buy
downstairs often have taller a house based on where it’ll fit, is
ceilings than rooms upstairs.) there?
Could it store games, videos,
tablecloths and place mats, and
silverware in its new location?

If that thought process takes care
of the chest, but you’re left without
enough storage in the bedroom,
what then? Is there a smaller
chest of drawers that was used in
your old guest room that would
fit in your bedroom? What about
putting an inexpensive chest of
drawers into your walk-in closet?

14

A Bit About Best House Color to Sell
Mold
When you go to social events, do 5. On large flat surfaces, such as
There are a number of little things you make an effort to snazzy up? the side of a garage, keep in mind
to look for when purchasing a new Of course. Attraction is a key factor the color you choose will have a
home. Normally things to consider in forming relationships and the washed out appearance.
include location, wiring, the same applies to your house.
condition of the house, and several Now we get to the fun part. After
other factors. When you put the house on the considering the above issues, make
market, you need to make it look a preliminary list of colors and
One of these factors is mold. There good for the dates with potential buy small cans of each color. In
are different types of mold that can buyers. The color of your house a private area of the house, start
occur in a home and lead not only can make all the difference. applying samples strokes a couple
to structural damage, but some feet long and a foot or so wide.
health concerns too. Mold can First, there is no absolutely correct
be difficult to find in homes as it answer to the best color! Instead, Try to paint examples in shaded
grows exclusively in dark and moist the decision depends on the areas and those exposed to the
areas that are hidden somewhere makeup of your home and the sun.
in structural areas, like attics and surrounding landscape.
basements. By the time mold Do not immediately judge the
shows up in actual living areas, Let’s take a closer look: results of your experiments.
chances are that it is throughout Instead, wait a few hours for
the home. 1. Whatever color you choose, the paint to dry and then start
make sure it doesn’t clash with the comparing.
Another concern is if a home has other homes in the neighborhood.
ever flooded and was not properly An otherwise appropriate color Dry paint takes on a very different
cleaned. Leaky plumbing and could end up making your house appearance than when it is wet.
basement crawlspaces are other an eye-sore.
likely candidates. Mold can be a Once the paint is dry, take a long
difficult thing to get rid of as the 2. The Roof. What color is the roof look at each sample. You will
only thing it needs to continue on your home? If it is a red tile typically find the colors look much
growing is organic material such as roof, off-whites are probably going different. You may find one color is
wood and moisture. Both of these to be the better choice than dark perfect or you may find something
items are abundant in most homes. green. Unless you are going to a little different would be best.
invest money in a new roof, make Either way, you’ll have come up
Usually moisture finds its way into sure the paint color doesn’t clash with the best house color to sell
a home through leaky roofs and with it. your home.
foundations. Both areas should be
checked by an experienced mold 3. Highlights. If there is a particular
inspector on a regular basis if there part of your house that should be
is any worry of mold beginning to emphasized, used light colored
grow, or if there has been mold in paint around it to draw attention.
the past.
4. Hide It! Conversely, if there
Mold can be an expensive problem. are parts of the house that are
Be proactive about searching for it mundane, use darker colors to
so you save money in the long run. draw attention away from them.

15

Opening Doors...

...Making the Dream of Home Ownership a Reality

Call and Let Us Help Make Your Dream Come True!

John Silva-Sr. Loan Officer
NMLS#1101193
Cell: 713 443-2412
Office: 214 301-7081
Fax: 214 279-3341
www.ifinanceyourdreamhome.com
:[email protected]

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