What To Do After the Move

We can read a lot of articles on what to do before the move, but, there are limited articles talking about what you have to do once you move into your new home. So, here are some tips that will help you settle down to your new surroundings.

1.  Make sure that all utilities are already set up and ready for use.

2.  Make sure that ALL appliances and electronics are not damaged from the transfer. If something was broken during transit then you can claim damages from your insurance company (if you've taken one)

3. If you have child(ren), consider working on the children's rooms first. Moving to a new place may disrupt your child's routine. The sooner they can settle into their new home; the sooner they'll feel comfortable in the new place they're going to live in.

4. Register your children to their new school. The earlier you register them for school; the faster for them to settle in.

5. Obtain a new driver's license and plates for your vehicles.

6. Register to vote.

7. Make sure that all mails from your old home will be forwarded to your new address.

8. Find new health care professionals (i.e. doctor, dentist and veterinarian) in your new local area.

9. Set up new accounts with banks close to your home. It's always easier to have your branch of account near you. For the reason that, in case something goes wrong, you can immediately communicate it with the bank and if they need you to appear in person, you can quickly pass by the bank to settle the problem.

10. Moving into a new neighborhood means new neighbors. Take time to introduce you and your family to your new neighbors. They might be able to share some tips and tricks about your new community that might come in handy in the future.

11. Also help your kids join sports leagues or sign up for their favorite hobbies. Gaining new friends will be easier if they are part of a group.

It will take time for you and your family to become accustomed to the new surroundings and new people in your neighborhood. But give it time, you’ll eventually get used to your new environment.  Just follow the tips above and you'll be fine. If you need help in moving into your new home, please don't hesitate to contact me.

Is Home Ownership Still Possible for the Millennial Generation?

Bound by student loan debt and looking at unemployment situation n the US, many millennial (those in their 20s and early 30s) - the traditional 1st time home buyers, wonder if they can still afford to purchase their own home.

In May, Alaska has reported unemployment rate of 7%. (Source: Bureau of Labor Statistics)

With the mortgage rates and home prices at record lows,the millennial generation are excited to buy their very first home! Only to find out that their dream of buying a home is out of the question if they are still paying off their student loan debts.

If you belong to the Millennial generation with student loan debts and buying a home is your goal, then you can start with these three steps:

1. Cut debts. Reduce or eliminate all debts including student loans. When a lender reviews your loan application, they will look at the following factors if you can qualify for a mortgage loan. 

  a. Income
  b. Debt
  c. Credit
  d. Employment
  e. Property or collateral
  f. Financial resources used for closing costs

Most lenders want to make sure that you will be able to meet your monthly mortgage payment (including taxes, insurance and all other fees) With all factors combined, this should not exceed 28% of your gross monthly income (before-tax). After that, they will factor in your existing debts, the total of your mortgage payments and existing debt should be under 36% of your before-tax monthly income.

2. Increase your credit score. Lenders want to know what risk they will be exposing themselves if they loan the money to you.  They want to see how much you owe, how often you borrow, if you pay your bills on time and if you are living within your means.  Late payments can hurt your credit score, low credit score can make it harder and more expensive for you to obtain a loan. So, make sure that you settle all your obligations on time.

3. Save on down payment. Once you've cleared all your debts, start saving for a down payment. The amount of down payment you need to save depends on what type of loan you want to take. If you are applying for an FHA loan, the minimum down payment will be 3.5% of the purchase price. While conventional loans may require to pay for 10% - 20% down payment.

If you decide to buy your home while you still have your student loans to pay for, Barbara Corcoran, co-founder The Corcoran Group advised, "See how much debt you are comfortable living with, I would suggest you go on a trial run.  Add up your student loan PLUS what you WOULD have to pay if you were to take on a mortgage and try living on the expenses for 6 months and see if you could live with it. If you are comfortable living with it, then go ahead, if not, then wait for a while before buying your first home".

If you need help on figuring out if you qualify to purchase your dream home, please don't hesitate to call me.  Check out www.anchoragehomedeals.com for a list of homes suited for first time home buyers.

Common Mistakes To Avoid When Renting Out Your Property

Mortgage rates are at its historically low these days. Some home owners take advantage of the low mortgage rates to invest in real estate and use it as a rental property to generate additional income.  When they rent out their property, someone else is paying for their mortgage while they earn extra money from the difference in mortgage and rent.  Renting out properties is a great way to earn additional income but it can also be a nightmare if you don't know how to manage it. If you want to have a smooth rental business, make sure to avoid these common landlord mistakes when you rent out your home:

1. Being Lax About Screening
Finding the right tenant is always the key to having a successful landlord tenant relationship.  Always set your guidelines of who you do and don't want to rent to. Make sure they fill out the application form with the correct information. This way you'll get an idea of what type of person your prospective tenant is.  Use a national credit check company to run their application. You must check for credit, employment and rental history. Ideally, they must pass all 3, but 2 out of 3 will suffice. It is an automatic denial if they have any criminal or eviction record.

2. Not Having Correct Documentation
Having a signed lease agreement is always a smart thing to do. The agreement will serve as a guideline for the tenants to follow in renting the property. The document will cover topics such as late payments, pet policies, vandalism and so on...

Realtors or an attorney can help you create a rental agreement in accordance to the state rules and your preferences.

3. Discriminating Against Prospective Tenants
Familiarize yourself with fair housing rules. The Human Rights Commission is very strict on discrimination when it comes to housing.  The Fair Housing Act prohibits the discrimination in the sale, rental and financing of dwellings and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). (Source: www.hud.gov)

If you want to turn down a renter's application, use a credit or background check to support your decision.

4. Forgetting to Prepare Your Home
Home staging is always important, whether you want to sell your home or have it rented out.  If you want to get top dollar on your investment, then better make sure that your property is move-in ready and in tip top shape.  Fix everything that needs to be fixed.  Paint the walls and ceilings. Also make sure that your flooring
is nice and clean. Preparing your home makes the home more marketable to prospective tenants and easier to rent out.  The state of the home will always say something about the personality of the owner. If the house looks shabby, then it will reflect on the landlord.  The house that's going to be rented out must always be move-in ready.  Renters will NOT make any improvements on the property that they are going to rent.

5. Forgetting To Buy Correct Insurance
Even if you have homeowners insurance, it will not offer full coverage if your home is being rented out full time.  By getting a landlord insurance, you can protect yourself from damages, accidents and financial losses on your rental property.  The landlord insurance will not cover the loss in renter's possession in case of damages, so it is better to require your renters to purchase a renters insurance.

NOW is the best time to invest in Real Estate! Rental demand has increased in the past few years. Rent is one of the best way to build your wealth. While someone is paying off your mortgage, your property is appreciating. It may not be evident now, but wait for a few more years while the market stabilizes then you'll see the increase in value of your property.  Properties have always gone up over the long term. 

According to NAR (National Association of Realtors), Investors have reported in many cases a positive cash flow converting properties to rental units.  The continued trend of rising rents increases the value of home ownership.

If you are on the look out for properties that you would like to rent out, always consider the location and the state of the property.  For a list of properties, visit www.anchoragehomedeals.com.  If you have a question, please don't hesitate to contact me.