How to Choose a Moving Company

Moving to a new location is a life-changing moment. It can be exciting, especially if that move means a better life, like buying a house for your family. But it can also be stressful, especially if it’s a long-distance move.

You have to organize your belongings, ensure your family is comfortable, and plan how you’re going to adjust to the new place. Moving involves planning, packing, and transporting your belongings, and that’s challenging. But you can relieve yourself from the entire burden by hiring movers.

However, choosing a moving company is not easy either. If you hire the wrong mover, you’ll have to deal with damages, delays, and overcharging. You have to choose the right mover if you want some peace of mind. To avoid all the hustle, here is how to hire the right moving company.

Ask for Referrals

The best way to hire a moving company is to ask for referrals from friends and family. There are many places you can ask for a moving company, including your realtor. Your family and friends can also suggest a company they’ve worked with before and even warn you against those you should never hire.

Happy customers are always ready to recommend a company they’ve worked with. The good thing about referrals is that they’re always genuine.  If you can’t get referrals, social media is another good place to check for reviews in moving companies. You’ll quickly find customers talking about their experiences with a particular moving company.

The American Moving and Storage Association is also an excellent place to source for recommended movers. Ask any mover for their references and try to talk to one or two of their customers. If your mover is unwilling to give you their references, take that as a red flag.

Verify the Company Credentials

No mover will admit to you that they’re not licensed or they don’t have business insurance. It’s upon you to verify that the information they’re giving you is credible. If they’re licensed, they’ll probably have the Department of Transportation (DOT) number on their website. This license identifies all commercial vehicles that transport passengers and haul cargo in interstate commerce.

The mover should also have a carrier number offered by the Federal Motor and Carrier Safety and Administration. Check both the numbers to verify that your chosen company is legit.

The American Moving & Storage Association (AMSA) is the national trade association for the American moving industry. It’s even better if you can find AMSA certified long distance movers. AMSA members offer an extra level of credentials that can provide peace of mind during your move.

Get a Thorough Estimate from Your Mover

A good mover will first take an inventory of your belongings before giving you a quote. An inventory helps the company determine the weight and bulk of your belongings to try coming up with an as accurate estimate as possible. They check your drawers, cupboards, bookcases, and garages. They’ll give you an estimate based on the weight and the size of the truck the items will occupy.

The inventory is either done in person or through a virtual survey. They’ll also consider whether you’re moving locally or on a long-distance when giving you the estimate. Consult with your mover if you don’t understand anything in the estimate and ensure everything is as straightforward as possible.

Avoid Companies with Large Deposit Requirements

It’s not wrong for a moving company to ask for a percentage of the total payment before starting the work. What’s wrong is them asking for an outrageous deposit or even the entire amount. Anything above 20 percent of the total cost of moving should be a red flag.

Some moving companies don’t even require a down payment before moving your belongings. Reputable companies will need you to pay upon delivery of your items.

If you’re going to make a down payment, make sure you use your credit card. This way, you can get the chance to contest the charge if anything goes wrong. Credit cards provide you with a wonderful way of protecting yourself from fraudulent activities. If you make the mistake of making a sizeable down payment, you’ll lose control or when you’ll see your belongings.

Beware of Extra Charges

Some movers will charge you extra if you live in a two-story building. If they have to climb up to the 10th floor when moving you out or moving you in your new house, you’ll have to pay extra. Also, if you move to a remote area, your moving company cost will go up.

Also, the best time to buy a house and move might be the off-peak season when prices are lower. You’ll have to negotiate such costs beforehand, so you don’t end up with surprises. Ask your mover for all the additional fees you’ll need to pay, so you prepare yourself.

You can also choose to forego additional fees such as the packing fees. However, this also means taking risks as the mover will not be responsible for any damages. If you prefer that your mover packs for you, you’ll pay additional fees for the packing materials and the labor. It’s always a good idea to choose movers that also provide packing and unpacking services.

Keep Your Eyes Open for Red Flags

Not all moving companies out there are legit since some are just after your money. Some reputable companies won’t ask you for cash deposits, while others tend to ask for a lot. If they seem too hungry for your money, you should continue shopping around.

You can also differentiate professionals from unprofessional movers based on how they do their estimates. Others even guess the amount before seeing or asking about your belongings. Some will come late to your place to do the estimates and end up inconveniencing you. Also, if a mover doesn’t have its moving van, continue shopping for better ones.

Another red flag to watch out for is a long-distance moving company without a license or an insurance cover. If you’re moving to Atlanta or any other state, find out if they require their movers to acquire licensing. Even if they’re not licensed, ensure they at least have insurance so they can assume liability for your belongings.

Finally, watch out for moving companies that offer blank contracts. Make sure you get your estimates and all the extra fees in writing. Read the contract and only move ahead if you’re satisfied.

Compare Several Quotes before Hiring

Even if you get the best referral for a company, don’t settle for their quote before checking what others have to offer. Who knows, you might even get free packing if you hire the next company. Getting multiple quotes from different companies will give you a chance to compare quotes and only choose the best.

However, your choice should depend not only on the price but also on the above factors. You must understand that professional movers differ significantly in prices, reliability, and quality of their services. Factor in what the company is going to offer you apart from just their rates.

Conclusion

Moving is a strenuous process, but not when you get to work with a reliable company. Choosing a professional moving company eases the burden and ensures you have peace of mind. So, whether you’re moving locally or considering moving from state to state, a good company will ensure everything happens smoothly.

If you can’t get a reliable moving company, SimpleShowing can recommend one. We help you find a good house and help you move quickly and settle in your new home without any problems.

Top Real Estate Agents in Lawrenceville, GA

Lawrenceville sits at the county seat of Gwinnett County, one of the fastest growing counties in Georgia. Located roughly 20 miles northeast of Atlanta, Lawrenceville is filled with history as the state’s second oldest city in the metropolitan area. While the city remained mostly rural for many years, it has regenerated into a thriving community with incredible opportunities.

Lawrenceville’s suburban area brings everything residents need together into one convenient place. The continuously expanding Downtown Lawrenceville is host to community events throughout the year, along with local restaurants, breweries, stores, museums, and theatres. The Mall of Georgia is just minutes away along with other popular attractions including Tribble Mill Park, CoolRay Field, Sugarloaf Mills, Stone Mountain, and much more.

However, it’s Lawrenceville’s family-friendly community that makes it a great place to settle down and live. The city ranks as the third most diverse place to live in Georgia and provides quality education within the state’s top public school system, Gwinnett County Schools. Crime rates in Lawrenceville are low which only adds to the comforting, homey feel the city provides.

How is the Housing Market in Lawrenceville, GA?

If you are interested in buying a house in Lawrence, it is important to understand the housing market you are entering. According to Zillow, the current median home value in Lawrenceville sits at $187,200 Properties in Lawrenceville typically sell for 97.9% of the asking price and are on the market for approximately 57 days. A total of 4,037 homes were sold in Lawrenceville last year while the median home price increased by 5%.

While the city’s population has dramatically increased over the years, housing options have expanded to accommodate these demands. This means plenty of newer homes are available with even more new construction homes on the way. Those looking to move to this area will have no problem finding an affordable home that suits their needs.

Top Real Estate Agents Serving Lawrenceville, GA

If you are looking to buy a home in Lawrenceville, we’ve put together a list of some of the top-rated, local real estate agents to help you accomplish your goals. Below, you can see the number of recent sales and reviews to make it easier to choose which agent is right for you.

Kevin “Skip” Hulsey, SimpleShowing Real Estate

  • 9 reviews
  • 24 recent home sales
  • Highlights: Buyer’s Agent, Listing Agent, Relocation, Short-Sale

Here’s what clients have to say about Skip Hulsey:

“Skip was great to work with when purchasing our first house. I really appreciated that not only was he flexible on showing us houses during both the day and evening but also showing us additional listings if the ones we initially scheduled didn’t work. We’d tried two other realtors, and house hunting seemed to be taking forever because we could only see one or two places at a time. He was also knowledgeable about both the market and various areas, and when the right house showed up, we were the first ones to see it and had an offer in that night. “– Shannon F. (Google)

Cheryl Dunnings, Palmer House Properties

  • 37 reviews
  • 24 recent home sales
  • Highlights: Buyer’s Agent, Listing Agent, Relocation, Short-Sale

Here’s what clients have to say about Cheryl Dunnings:

I would consider Cheryl Dunnings to be a subject matter expert with almost 20 years of experience, and one who exudes positive energy. She is very knowledgeable about different builders and the quality of their products. She kept me well informed about everything during my entire home buying process, which is a plus because I’m very detail oriented. I have heard so many horror home buying stories, but Cheryl made my first home buying experience worthwhile. –Samorya E. (Zillow)

Sarah Pickell, Keller Williams Realty

  • 23 reviews
  • 18 recent home sales
  • Highlights: Buyer’s Agent, Listing Agent, Relocation, Staging

Here’s what clients have to say about Sarah Pickell:

“Sarah was wonderful to work with. As a first-time home buyer, I loved how she was willing to answer every question I had and helped walk me through the entire process. I really appreciated how she was willing to show us houses very quickly, and I believe that is why I was able to buy my perfect home. I am happy I was able to work with someone who was genuinely honest and nice but was firm when it came to negotiating deals. I would recommend Sarah to all my friends and family!”- Anonymous (Zillow)

If you’ve decided to search for homes in Lawrenceville, you’ll need a real estate agent that will help you buy smart and save smart. At SimpleShowing, our team of knowledgeable real estate agents provide buyers with negotiation, inspection, and contract support. Along with traditional real estate services, buyers will also receive a buyer refund of up to half of our commission at closing. Use that refund towards closing costs, renovations or even your first few mortgage payments. Other realtors can’t do that!

If you plan on selling with SimpleShowing as well, you will receive a low 1% listing fee, a real estate agent, contract and negotiation support, MLS listings, an open house, and more. It’s the same real estate agent experience, just at a lower cost!

Take advantage of the market and find your new home in Lawrenceville! Contact us today and we’ll put you in touch with one of our top real estate agents in the Lawrenceville area.

Should You Use An Online Mortgage Lender?

Buying a home is likely the most important and substantial purchase you will make in your life. The deal you strike for a home loan will impact your finances for years or decades to come. There are a variety of options to apply for and secure a mortgage to buy a home. The latest trend in mortgage lending in the digital age is using an online lender or mortgage comparison site rather than a traditional bank or mortgage broker.

With online activity at an all-time high and growing every year, COVID-19 fears have made the world more reliant on digital technology for business and personal communication. With social distancing and stay-at-home mandates, online mortgage lenders are more popular and accessible than ever.

Digital Age Sees Increase in Online Mortgage Applications

As millennials who have grown up with smartphones in their hands reach the prime age to buy a home, online mortgage applications are becoming a more accepted method to secure a loan. Social distancing guidelines resulting from the global health pandemic have put online mortgage companies in the unique position of performing a valuable function of the home buying process most safely.

There are now thousands of mortgage lenders on the internet, with more coming online every year. If you decide on using an online mortgage lender, it is in your best interests to shop around to see which ones offer the benefits and features that suit your needs and preferences.

What Are the Benefits of Using an Online Mortgage Lender?

Consumers worldwide are taking advantage of the speed and ease of online processing for all types of industries, and the mortgage industry is no exception. The convenience of applying for a home loan using an online mortgage lender offers homebuyers a range of benefits and features, including:

Lower Interest Rates, Fees

With so many options on the market, online mortgage lenders typically offer the most competitive interest rates to attract homebuyers. The ease and range of choices forces internet-based mortgage companies to offer the best rates and lowest fees possible. Because they have no overhead expenses operating an automated system, online mortgage companies offer rates that can save you thousands of dollars over the life of the loan.

More Options

Homebuyers can often find a wider variety of programs online that the local bank or credit union may not have access to. Government-backed mortgages with more flexible down payment restrictions include FHA loans and VA loans. If you are purchasing your first home, additional loan programs may not be available at a traditional mortgage broker.

In case you already own a commercial property, commercial bridging loans can be a great option to finance the purchase of another commercial property. With bridging loans, you bridge the gap between the sale and the purchase of a commercial property. They are short-term loan options that come with flexible terms and repayment options.

Lower Credit Rating Requirements

Your credit score has a major influence on your ability to secure a home mortgage loan and will affect down payment and interest rate. The higher your credit rating, the more lenders are comfortable taking the risk of lending you money.

If you have a low credit score, it will be harder to get a home loan with manageable terms approved through a traditional lender. While most lending institutions require a credit score of at least 640, online lenders may offer you a 580 rating loan or lower for FHA loans.

Saves Time

It takes time to physically go to a bank or credit union and fill out the necessary paperwork for a loan application. It takes a fraction of the time to get a quote from an online mortgage lender with a digital application process. In one computer session, you can get quotes from multiple sites, making it easier and faster to find the deal that works best for you and your family.

According to a New York Federal Reserve report, processing times for online mortgage lenders average two weeks faster than traditional lenders and shorten the purchase time by nine days.

What Are the Disadvantages of Online Mortgage Lenders?

If you are a first-time homeowner or not computer-savvy, it is important to fully investigate and weigh all options before making a decision as big as purchasing a home. There are some drawbacks to using an online mortgage lender instead of a brick-and-mortar bank or credit union. The following are examples of the disadvantages of using an online mortgage lender.

Reduced Customer Service

Because you are not dealing directly with a real person, communication and customer service are less of a priority with a high-volume online lender. You will lose the personal touch of having any questions or concerns be addressed by an agent or loan officer with a vested interest in your satisfaction.

Hidden Closing Costs

Closing costs are fees to pay for the processing of the loan. Any type of lender can work in additional fees specifically designed to increase their profit without benefit to you, but it is easier to hide them in a long, complicated digital document. Online mortgages often have more fine print and confusing language. Before agreeing to the terms of an online loan, you should study the document for any hidden fees or questionable items, so you are not surprised with additional expenses when you close.

Rates Are Not Guaranteed

Online mortgage lenders will lure you in with the promise of a low rate without even knowing if you qualify. Bait-and-switch techniques can wind up costing you more than a traditional home loan over the life of the loan.

Is an Online Mortgage Lender Right For You?

Online mortgage lenders can offer convenience and savings for some homebuyers, but it may not always be the best option for everyone. The important thing is to shop around and perform your due diligence so you can make the right decisions for yourself, your family, and your financial status.

The realty professionals at SimpleShowing, have years of experience in the market and can help guide you through the complex and stressful home buying process. Contact a knowledgeable representative at SimpleShowing today.

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How Long Does It Take To Get Pre Approval For A Mortgage?

Getting pre-approved for a mortgage loan is a necessary step in homeownership that lets the lender know you will be able to afford the monthly payments. Home loan lenders require a long list of information and documentation to verify your employment and financial status before they are willing to finalize your mortgage.

While there are more documents required than ever for a mortgage pre-approval, technological advances in the digital age have made it easier and quicker to complete the process. If you have all of the information you need and the proper documents gathered, you can get pre-approved for a mortgage faster than you would think.

What is a Mortgage Pre Approval?

A mortgage pre-approval does not guarantee you will get a loan to buy the home you want. Being pre-approved for a mortgage means that your financial records have been examined by a loan agent that has looked into your income, assets, debts, and credit status. Based on the information you provide them, the lender will decide on the size of the loan that would make sense for your circumstances, with recommendations for the interest rates and the amount of your monthly payments.

Once pre-approved, the lender will send you an official letter saying that they are ready to work with you on a home loan. You can present this letter to sellers to demonstrate your sincerity and ability to afford to purchase the house.

What is the Difference Between Pre-approval and Prequalification?

A mortgage pre qualification is a less formal assessment of the information you supply to a lender without verifying the numbers you give them. If your assets and income are not accurately represented, pre qualification will only serve as a rough estimate of your lending capabilities.

Pre-approval for a mortgage means the lending institution has taken the time to make sure the information you provide is accurate. To get pre-approved for a mortgage, the lender will investigate and verify the information you provide. You will have to prove the information with official documentation that accurately portrays your financial standing. Sellers can trust that a pre-approved borrower is qualified to pursue homeownership.

How Do You Know What You Can Afford?

The first step in the process of getting pre-approved for a mortgage is an honest assessment of your finances. Take the time to calculate how much you can reasonably handle monthly mortgage payments, as well as other expenses related to owning a home. Your self-assessment and pre qualification will only be accurate and helpful if you are truthful and complete with the information you include.

Online mortgage calculators allow you to input your financial information to determine your monthly payments based on your income, assets, and debts. Seeing a payment schedule estimate will give you a better understanding of what you can afford and whether you could get pre-approved for a home loan.

What Do You Need to Get Pre-approved For a Mortgage?

Whether using an automated underwriter or a traditional loan officer, you will need to provide a variety of documents and information. Lenders use the information you supply to verify your financial status and determine if you are eligible to be granted a home loan mortgage.

Identification

  • Valid driver’s license or United States passport
  • Social security number
  • Copy of green card for non-citizens of the United States
  • Verification of employment

Proof of Income

  • Paycheck stubs from the last month.
  • W-2 tax forms from the previous two years.
  • Verification of additional income sources
  • All pages and schedules of personal and business federal tax returns from the last two years

Listing of Assets

  • Bank statements that verify the origin of down payment and closing costs
  • Gift letter stating that any gifted funds are not expected to be repaid
  • Quarterly statements for savings accounts like 401(k), IRA, mutual funds, and stock accounts

What Are Automated Underwriters?

The mortgage industry takes full advantage of the rapid rise in technology and communication advances to dramatically speed up the process of applying for pre-approval for a mortgage. An automated underwriter will collect mortgage loan application information and make nearly instant decisions on whether the lender should approve or deny you a home loan. Automated underwriting engines are significant time-savers for lending institutions, and decisions are based solely on logic and algorithms that eliminate human bias.

The documents you need to submit to a home lender like Fannie Mae, Freddie Mac, and other automated underwriters are essentially the same as you need for a standard mortgage pre-approval. The following is a list of the information you will be asked to supply to an automated underwriter.

  • Personal information like your name a birthdate
  • Social security number or card
  • Two-year residence and employment history
  • Two years of W2’s or tax returns
  • Paycheck stubs of all applicants from the last 30 days
  • Asset statements from the previous 60 days
  • Source of funds needed for closing costs

How Long Does it Take to Get Pre-Approved For a Mortgage?

For most people that apply for mortgage pre-approval, the process can take as little as a few moments to several hours. The time-consuming part of getting pre-approved for a mortgage is accumulating all the needed documents and pertinent information. If you have accessed all the information you will need, you can get the results of a mortgage pre-approval request the same day. If your case is complicated by debt, low credit rating, or previous financial problems, it could take far longer to process.

Let SimpleShowing Help You Through the Mortgage Preapproval Process

Getting pre-approved for a mortgage is an important early step in buying a home and can set the tone for the entire experience. The industry professionals at SimpleShowing can assist by making sure you completely and accurately represent your financial status to speed up the pre-approval process. Contact SimpleShowing for complete information on what you need to get pre-approved for a mortgage.

What Is a Split-Level House?

No matter which city you’re house hunting in, you should have no problem finding a split-level house.

Whether you’re looking in rural areas, suburbs, or something closer to the city, these style of homes are very commonplace and popular for a number of reasons. So, even if you’re not quite sure what kind of house you want to call home, you’ll probably come across at least a few split-level houses when considering your options.

But what is a split-level house?

The Simple Definition of a Split-Level House

Simply put, a split-level house is one with staggered levels and an entryway or front door that opens in the center of the two levels.

Typically, this means that, upon entering through the front door, you’ll be greeted by a staircase that goes up to the bedroom level and another that will take you to the basement area.

The basement area is almost always finished, as well, so it can serve multiple purposes. For example, it will usually include at least one bedroom and a laundry room. Many split-level homeowners will also use the basement’s main space as a living room or their primary room for entertaining.

Another easy way to think about split-level homes is that there’s no one floor that covers the house’s entire footprint. Some may have large main floors that include the kitchen and dining room, but it eventually gives way to the staircases which lead to the two other floors. Whereas a craftsman house and other popular designs have floors that overlap each other perfectly, the floors of a split-level home are staggered.

What’s the Difference Between a Split-Level vs. Bi-Level House?

Many buyers confuse split-level houses and bi-level houses, so they show up hoping to view the former type of home only to realize it’s the latter.

And while they are similar, they’re different enough that you most likely wouldn’t be interested in one just because you’re in the market for the other.

A split-level house includes at least three different levels. It has the initial level you enter when you first walk in. This usually includes the kitchen and dining room, as well. Then, there are the two aforementioned levels, though there could be more.

In a bi-level house, there are only two levels. That’s it. An entranceway gives you access to both of them and is usually perched between the two, but that initial “floor” is little more than a small space just big enough to make access comfortable.

Bi-levels also tend to be Ranch-style homes, albeit modified for their unique two-level design. On the other hand, split-level homes come in a number of different styles.

Types of Split-Level Houses

Split-level houses come in all shapes, sizes, and, as we just mentioned, architectural styles. Not all split-level houses are three floors, either (commonly called a “tri-level”). There are also stacked split-level houses that can have as many as five or six floors.

This kind of variety is what makes them so commonplace across all kinds of different neighborhoods.

That said, there are two main types of split-level houses. It’s worth knowing about them if you’re going to be viewing properties any time soon.

Side-split

A side-split house is where you can see all the levels from the curb. The house in The Brady Bunch is a famous example. From the front, you can see one level off to the right and two off to the left.

Brady Bunch TV Show House

Back-split

With a back-split house, you can you can see just one level from the curb. It’s only when viewing it from the side that you’re able to see that there are two more levels that split off the main floor.

Is a Split-Level House for You?

Split-level homes have been a popular option since the 1950s, though they aren’t being built as much anymore.

Nonetheless, they remain popular for three key reasons.

1. Open Floor Plans Are Losing Fans

First, homeowners are becoming disenfranchised with the kinds of open floor plans that have dominated residential architecture for the last decade or so.

While these designs became popular for their spaciousness, it seems as though more and more homeowners prefer definition. It’s easier to furnish and decorate distinct rooms when the house itself helps support that distinction.

2. You’ll Enjoy More Bang for Your Buck

Second, they make the most out of a smaller lot size. Instead of two floors and a basement, a split-level house could give you three floors and maybe even a crawlspace off the basement for extra storage. Again, each room feels distinct, too, which will give you more opportunities to divide up your house as you see fit.

So, with multiple levels, you can often enjoy more square footage without having to pay for the kind of lot usually associated with that size in other homes.

3. You’re Never Far from Any Room

Third, many owners of split-level homes report that they love how easy it is to navigate from one room to the next no matter what floor you’re on.

That’s helpful when you’re bringing in groceries from the garage and want to move quickly into the kitchen or want to watch TV in your basement while still being near your front door in case someone rings the bell.

This is why many parents of young children love these homes. They still provide space and privacy, but you can move around without ever being far from your small kids – whether you’re on the ground floor or the upper floor.

Looking for a Split-Level House?

Do you currently have your eye on a split-level house? Split level homes cost ranges can be in line with or below median market prices, making them affordable for a first-time buyer.

Are you hoping to find the perfect one in the near future? Either way, we’d love to help. If you’re planning to build a home and want to explore different floor plans and options, there are 6 different building styles you should explore – including modern, barn style, traditional and more.

At SimpleShowing, we can make it even more affordable to purchase these already budget-friendly homes. With our buyer refund program, you’ll actually receive a check at closing for up to half your agent’s commission. On average, this amounts to more than $5,000

To learn more about how this program works – and all the other benefits we have to offer our clients – contact us today.

3 Times When You Will Want To Sell Your Rental Property

Rental properties are often fantastic sources of income. When you find the right tenants who pay promptly and keep the place in excellent condition, having a rental property can feel perfect. However, there will invariably come the point in time when the rental will no longer serve its purpose, and you may want to sell your rental property altogether.

Here are three typical times when selling your rental likely makes more sense than keeping it.

Sell Your Rental Property When You Can’t Find Tenants

This time is perhaps the most obvious. If you have a rental for which you cannot find tenants at a market (or even slightly below market) rent, it’s probably a good idea to sell your rental property.

Difficulty finding tenants causes two problems for rentals.

First, if you’re having a tough time finding people who want to rent, it doesn’t bode well financially. You’ll likely have to slash rents to the point where you’re losing money, or you’ll have to accept less-than-ideal tenants who won’t take care of your place very well. Either way, you could find yourself in a lose-lose situation.

Second, the longer it takes to find tenants, the more money you’ll spend on your property without any revenue. This point is especially prescient for rental properties without paid off mortgages. If you have to carry a mortgage and have no money coming in, it might be time to consider selling the property. You can always use the cash to get into a more profitable rental later!

Ultimately, if you’re struggling to find good, qualified tenants for your rental, that’s a pretty good sign that you should consider selling it. Holding on too long may have harmful consequences financially.

If Your Property Has Appreciated Significantly, It May Be Time To Sell

Property values are on the rise. Even in a world currently besieged by COVID-19, property values are still at or near the highest they have ever been. The average home price in June 2020 was $390,500, with the highest median home value in the US being $646,733 in Hawaii. Within the continental US, California has the highest value at $579,332.

If you bought your rental property five or ten years ago (or longer), you might have seen it appreciate by 20% or even more. A home purchased in the Great Recession may have doubled in value by now.

When your property gains a significant amount of equity, it may be time to consider cashing out and putting that equity to better uses.

Suppose you bought a home for $200,000 ten years ago. Now, that same home is worth $400,000. You have $100,000 left on your mortgage, and a large portion of your rental income is going towards that note.

You could wait until you pay the mortgage off to sell. In the meantime, though, you don’t have use of that money (or equity). If you sold the home, you could have $300,000 in cash (minus fees and commissions). If you put $40,000 down (20%) ten years ago, that would mean you’d have turned $40k into $300k in ten years – over 7x return!

What other investment could you make that would give you over 700% of your money in ten years? Furthermore, how much more do you think the property will appreciate?

If the property value has risen substantially, it may be time to cash out. You can always buy another rental property at a later time if you’d like!

Consider a Sale for Diversification

Sometimes, through inheritances and life choices, you can wind up in the proverbial, “too many eggs in one basket” scenario. Whether your rental properties are in the same market as your home or all your money is tied up in rentals, you may discover that you want to rebalance your portfolio.

When this happens, you’ll probably want to sell your rental property and take the money to invest it elsewhere! Rental properties are fantastic income streams, but it’s always a good idea to have a healthy portfolio!

As a corollary, this point also applies when you’re thinking of starting a business and need funding. Instead of getting a loan or tapping into some other debt source, you may wish to consider selling your rental to provide you with the funds necessary to make your venture a success.

All too often, people will get personal loans or HELOCs to fund their ventures. The problem with that is that your credit score and home are at risk. You can’t always sell your rental immediately to pay your HELOC by the due date, which can cause you financial complications.

Instead, consider selling off your rental property, getting the funds to start your business as cash, and then creating your new company!

There Are Many Good Reasons To Sell Your Rental Property

There are many reasons why you might want to make the sale. The ones listed above are the most common. Some other ones include that you inherited it, you no longer wish to invest in real estate, or the property no longer makes money.

Ultimately, you’ll want to sell your rental property when it no longer makes sense for you to have. Life changes constantly. If you have a rental home, you’d be wise to look at its value, the mortgage balance (if you have one), and think about whether it’s worth keeping. If it is, your choice is simple. Keep the property and continue to collect those rents!

However, if the rental property no longer makes sense to have, the market is hot right now. Even with the pandemic, property prices are at all-time highs in many markets around the United States. Now is the time to offload your rental property if it no longer works for you!

If you’re thinking about selling your home and want to save money on commissions, please consider listing with SimpleShowing. You’ll only pay 1% commission when selling, instead of 3% with the big brokerages. Depending on where you live and your home’s value, that could result in thousands of extra dollars in your pocket!

What is a Good Mortgage Interest Rate?

Purchasing a home is the largest investment and financial transaction you likely will ever make. Once the mortgage loan is finalized, and the sale is closed, you will begin making monthly payments to pay back the amount borrowed and the interest that will accrue every month. The interest rate is determined by the lender using various factors and calculations related to the current market and your personal financial history and status.

You will be making interest payments when the loan is disbursed until the loan is paid off. Getting the lowest possible interest rate on your mortgage will have an impact on your finances for many years to come. Understanding the various factors that influence the interest rate your lender is willing to give you puts you in the best position to get the best deal for what you can afford.

How Do Mortgage Rates Work?

The interest rate for your home loan is quoted as an annual rate and calculated for monthly payments. Mortgages are typically spread out over many years to lower monthly obligations. However, the longer it takes for you to pay off the loan, the more interest you will pay. The key is to get a mortgage that works best for your current financial circumstances and your future projections.

How Are Mortgage Rates Calculated?

Mortgages are typically amortized loans that keep your monthly payments the same every month throughout the life of the loan. The interest-to-principal ratio will shift as the amount owed on the principal gets whittled down. If you make all the payments dictated by the amortization schedule, the loan will be fully paid off when the term’s end is reached.

What is a Good Mortgage Interest Rate?

Understanding mortgage rates can be confusing. What defines a good interest rate for you depends on a wide range of factors. Interest rates change every day based on fluctuating global markets. Your financial history and prospects will also influence the interest rate available to you when applying for a home loan. How long you intend on staying in the home will also factor into the equation when determining the best mortgage terms for you.

What Are the Different Types of Mortgages?

The two main types of mortgages are fixed-rate mortgages and adjustable-rate mortgages (ARM). The primary difference between the two kinds of home loans is that a fixed interest rate keeps the rate the same throughout the term of the loan, while an ARM will start with a lower rate but will change over time.

While most home buyers use a traditional fixed-rate mortgage with terms lasting 15 or 30 years, an ARM may be the best option for your circumstances and needs.

Fixed-Rate Mortgage

Monthly payments due for a fixed-rate mortgage will remain the same throughout the life of the loan. The amount applied to the principal and the interest will be adjusted as the loan matures, but the total payment will not change. Fixed-rate mortgages make it easier for you to create and manage your household budget.

A 30-year mortgage features lower monthly payments than mortgages with shorter terms. However, the longer it takes to pay off the loan, the higher the overall cost of the loan. Mortgages with terms of 15 or 20 years have higher monthly payments but will significantly lower overall cost.

Adjustable-Rate Mortgage

The monthly payments for an adjustable-rate mortgage will change at a pre-arranged frequency after a fixed period of time. As your lender adjusts the interest rate of your loan, your monthly payments can increase each year. The initial rates for ARMs are significantly lower than traditional fixed-rate mortgages, making them useful for buyers who do not plan on staying in the home for an extended time.

Interest rates for ARMs can almost double after the initial, depending on the market rates over time. Monthly payments can quickly become overwhelming for many home buyers. Mortgages with adjustable interest rates should be considered carefully and reserved only for those with short-term intentions or able to pay off the loan before higher interest rates are assessed.

How Can You Get a Lower Interest Rate?

Any home buyer’s goal is to get the lowest possible interest rate on a home loan that offers the best deal for your specific situation. The following are ways you can get lenders to offer you a good mortgage interest rate.

1. Shorten Term of Loan

Shortening your home loan term will allow you to get a lower interest rate and provide a quicker way to pay off the loan. If you can afford the higher monthly payments, a shorter term can save you thousands of dollars in interest payments throughout the life of the mortgage.

2. Pay Off Existing Debt

Your debt-to-income (DTI) ratio is a major determining factor for lenders setting the interest rate for your home loan. Paying down or off some of your major debt will improve your DTI and free up funds to devote to mortgage payments.

3. Purchase Mortgage Points

Mortgage points, also referred to as discount points, allow you to prepay interest as part of the closing costs. Purchasing mortgage points is a method of reducing the interest rate on your home loan if you are planning to stay in the home long enough to make it worth the upfront cost.

4. Put Down Higher Down Payment

Putting down a higher down payment will result in you owing less money, lowering the lender’s risk and reducing the total amount of the loan. The more you can lower your loan-to-value ratio, the more attractive you will be to lenders willing to offer a lower interest rate for your home loan.

Get Started at SimpleShowing Today

The interest rate on your mortgage loan will have long-term consequences on your financial future. An impressive team of industry professionals at SimpleShowing can help make sure you get a rate that will fit your budget. Contact SimpleShowing for complete information on how to get the best mortgage interest rate for your home purchase.

A Buyer’s Guide to Colonial Homes

When looking for your next home, it’s easy to become hung up on words like “modern” and “updated.”

Of course, this is often for good reason. No one wants outdated amenities or features that are falling apart. Still, “new” doesn’t always mean “better.”

For many house hunters, nothing could be better than colonial homes, even though their roots go back hundreds of years.

What is a Colonial House?

Colonial homes are one of the few that embrace a distinctly American form of architecture.

As their name alludes to, these are homes that were originally built in New England during the 17th and 18th centuries or more recent versions that were designed in the same fashion.

Since they first became the preeminent style more than 400 years ago, colonial homes have evolved to embrace at least seven different designs.

However, these homes tend to have certain features in common.

Colonial Exteriors

Even people who find colonial homes absolutely gorgeous would tell you that their exteriors tend to be fairly plain. Similar to craftsman homes, though, this simplicity was originally by design. They were easy to build by early settlers who didn’t have a lot of time or money to spend on something more extravagant.

Nonetheless, colonial homes have remained popular because their simple designs are still very striking. They are usually perfectly symmetrical, featuring a basic window grid with a pediment, and a prominent central chimney or even two that bookend the home’s exterior. More contemporary versions may dispatch with the symmetry, though, in favor of additions, sunrooms, garages, etc.

Clapboard siding was originally the façade of choice for these homes, but brick is also a very common choice, especially among modern colonial houses.

Colonial Interiors

Unlike a craftsman home, colonial houses are all about creating separate rooms throughout. Usually, guests who walk through the front door will find themselves in a sizable entryway with a long hall that stretches the length of the house.

They also tend to have low ceilings because, centuries ago, vaulted ceilings would have taken up valuable space that could have been used for another room.

That being said, low ceilings don’t have to be boring ceilings. Many colonial houses have ornate trims or crown moldings in every room. Rustic exposed beams are also common and add a lot of character.

Finally, colonial houses usually feature at least one conspicuous hearth, complete with a mantel for decorating.

Types of Colonial Homes

Despite these commonalities, there are actually seven different varieties of colonial homes. So, there are plenty of options to choose from depending on your personal taste.

1. English Colonial

When the English first began building homes in the Colonies, they used designs that were similar to the popular option from back home. This resulted in simple, wood-framed houses that were easy to build but sturdy and able to hold up against the elements.

Originally, they would have featured open floor plans, so that a fireplace could sit in the middle of the house. Today, English colonial homes maintain their simple layouts but will include separate rooms throughout.

2. German Colonial

German settlers also brought their own style of architecture to the colonies and, eventually, into Ohio. Like English colonials, the German design also featured steep roofs, but theirs included upward curves at the edges.

These colonial homes were also more likely to be built from stone, the preferred material of the German settlers.

Nowadays, German and English colonial homes are very similar. The biggest difference, if there is one, is that the German versions usually have higher ceilings.

3. Georgian Colonial

The Georgian colonial was the most popular style in the Colonies during the 1700s. Named for Kings George I through IV, the biggest departure for this style was adding another fireplace and placing them at each end of the house.

As such, these houses were much less utilitarian. Inspired by the Italian Renaissance, they were perfect for entertaining guests thanks to decorative moldings, arched entrance ways, and elaborate mantelpieces that begged to be admired.

4. Federalist Style

The Federalist style is very similar to Georgian colonials insofar as they continued the drift from the functional aspects of their predecessors and emphasized decorative, ornate features instead.

You can generally tell these two apart because Federalist colonial homes include balustrades – ornamental half fences – along the roofs. They also feature Palladian windows above the doors.

5. French Colonial

French colonial architecture is far more common in the South, especially in Louisiana and Mississippi. They dot rural landscapes and are easy to find throughout urban centers. For example, New Orleans is renowned for its French Colonials.

While these houses are undeniably gorgeous, their design also reflects what were very functional features during the 1700s.

Aside from second-story living spaces that would be necessary during the kind of flooding that was commonplace in these regions, these houses are distinct from the others for their covered porches. Unlike their neighbors to the north, homeowners in the South needed extra protection from the sun.

6. Colonial Revival

By the late 1800s, the country was awash in countless types of architecture, but many began wondering if they didn’t have it right the first time.

Specifically, they drew inspiration from Georgian and Federalist designs during the Revival Era. Covered porches also became quite popular, even in parts of the country where the summer sun hardly made it inside the home. Sunrooms became common, too, marking a major departure from original versions.

7. Neo-Colonial

Finally, the 21st century has also seen a revival of colonial homes. Neo colonials share many aspects with their predecessors, from their square shapes and symmetry to gabled roofs to long hallways and compartmentalized rooms.

Most borrow heavily from the Federalist style, as well, which makes sense as modern conveniences have reduced the need for functional floor plans.

Therefore, the extent to which neo-colonial houses reflect their heritage is up to the owner. They may opt for low ceilings with exposed beams, but they could also choose vaulted ceilings. The same goes for sunrooms, front porches, and even pools.

With a neo colonial, owners can pick-and-choose from the various styles while also incorporating modern materials and amenities.

Should I Buy a Home? 5 Signs That You Need To Stop Renting

Many renters struggle with the same question, “Should I buy a home?”.

Let’s be honest. Renting is easy! There’s a lot of flexibility and financial security with renting. When you rent, you’re not on the hook for big repair bills when something goes wrong in the property. You also can move at almost any time, and there’s no risk of foreclosure.

Renting is simple, straightforward, and for those reasons, some people prefer it to homeownership.

However, despite the straightforward nature of renting, millions of Americans own houses and condos all across the country. If you’re reading this post, you’re probably wondering if you should become a homeowner too. While no article can answer that question definitively for you and every situation is different, here are five common signs that it’s time to stop renting and consider buying a home.

5 Signs That You Should Stop Renting And Buy A Home

1. You Have Enough Saved for a Down Payment

One of the best places to start when deciding if you’re ready to buy a home is to take a look at how much money you have saved in your bank account for a down payment.

You can also always use a rent-vs-own calculator to verify that homeownership is best for your particular circumstances. However, if you have enough saved for a down payment, then there are usually financial benefits to becoming a homeowner.

To illustrate this, let’s consider a typical example with someone living in Atlanta, Georgia. Let’s say that this individual is renting in the Virginia-Highland’s neighborhood, which is one of the ideal neighborhoods in Atlanta to live. It’s not uncommon for a 2-bed, 2-bath apartment to cost upwards of $2,000 a month ($24,000 per year).

By contrast, a 2-bed, 2-bath condo in this area of Atlanta would cost about $450,000 to buy. Let’s assume that this person has 3.5% saved – about $16,000 for this specific property. At an interest rate of 2.75% with no points, the monthly mortgage payment for this condo with a 30-year mortgage would be just under $1,500 per month. Of course, there are property taxes and HOA on top of that, so let’s assume another $500 for both. That makes the monthly mortgage payment about $2,000 per month, right at the base of the rental range.

However, unlike your rent, your mortgage payment gets “cheaper” every year. You’ll pay $2,000 per month for 30 years, and then you’ll have no more mortgage.

With rent, you can expect 2-3% increases every year. That $2,000 rent might be cheaper now, but may not be as your rent continually gets higher and never ends.

Depending on the type of mortgage loan you choose, you could need anywhere from a 3%-20% down payment. If you have a reasonable amount saved, it may be time to start considering buying a condo or a house.

2. You Feel Stable and Ready To “Settle Down”

Renting is attractive for young professionals because they may not be sure if they’ll want to live in that city for the long-term. There are many scenarios of people going to school in one town and finding a job there, but they may not intend to stay there long-term. In these cases, renting makes perfect sense as it provides the flexibility to move around.

However, once you’re ready to settle down in one city (that is, you cannot see yourself leaving there any time soon), then it could be time to buy a home.

As discussed earlier, it frequently makes financial sense to buy instead of rent, so once you know this city will be where you’ll live for the next 2-5 years at least, then buying is likely the better option than renting.

3. You Want More Space

As a young professional, living in 600 square feet of space might be sufficient. You have a sofa, a bed, and a place to kick back and watch the game. However, once you have a family, you will likely feel quite cramped especially if kids or pets are in the picture.

Kids love back yards and they are way more convenient for taking out animals. Plus, there’s plenty of research that shows that playing outdoors is healthy for children. While you can take them to parks and other outdoor activities, nothing is ever quite as convenient as just stepping out the backdoor of your home.

The only way to get that, of course, is to have a house. You may be lucky and find a rental that has a yard, but this is much unlikely. So, if you have little children or pets, you may find that it’s quickly time to trade up from renting and, instead, buy a home.

4. You’ve Found a Home at a Good Price & Secured a Low Interest Rate

When you buy a home, you’re going to want to make sure to buy something that you’ll be happy with paying for long-term. You’ll want to make sure you buy your home at a reasonable price and with a mortgage that has a good interest rate. If you purchase a home with at a high interest rate on your mortgage loan, then you’ll either have to refinance when rates drop or keep the same interest rate while paying a higher amount in interest. Either way, it’s not ideal.

Therefore, when interest rates are relatively low (as they have been during the past couple of years), that’s a strong indicator to buy. You know you’re going to be getting a fantastic deal on your mortgage that will make buying even more of a better decision.

5. You Have a Fantastic Credit Score

The best interest rates are typically given to those that have an excellent credit score. Unfortunately, mortgage rates increase substantially with lower scores. A 625 credit score might secure a mortgage at 0.5% higher than someone with a 750 score.

What difference does 0.5% make? Quite a bit. Here’s a quick example.

Let’s suppose you have a $400,000 mortgage. At a 3.5% interest rate, your mortgage payment would be $1,796. At 4%, though, your payment would be $1,909 per month. That’s a difference of $114 per month!

Over the life of your loan, someone with a 625 score will pay $41,000 more than someone with 750.

So, if you don’t have an excellent credit score, it may be worth improving that before you buy to save you thousands over the long run and reduce your monthly payment.

Should You Buy a Home and Stop Renting?

The answer to the question, “should I buy a home?” is almost always, yes, once you meet the conditions we’ve walked through in this article.

If you plan to stay in one location for several years, have a good credit score and have a significant down payment saved, then you would often be wise to stop renting and buy a home.

When you’re ready to get started, SimpleShowing can connect you with a local agent in your area and make the purchase easier by giving you $5,000 on average towards your closing costs.

Contact us to get started!

How to Get Your House Ready to Sell

Thinking about selling your house, but not sure exactly where to start?

How exactly do you get your house ready to sell?

Preparing your home for potential buyers can be a daunting task. You must be able to commit to transforming your home into a place that home buyers can easily picture as their home.

Read below for our tried and true tips on how to get your house ready to sell.

How to Get Your House Ready to Sell by Depersonalizing

To answer the question of how to get your house ready to sell, you have to be prepared to emotionally detach.Our home represents who we are, but that no longer mattes once it’s time to put your house on the market.

Instead of being your ideal home, it now has to speak to prospective buyers in a positive way. The best way to accomplish this is by depersonalizing your home, so it appeals to the most buyers.

Remove Personal Items

Our homes are highly personal. They showcase our memories, the things we have accumulated over time, and just our overall stuff.

However, buyers tend to label homes very quickly and first impressions are crucial. Eliminating personal items may be hard, but these can be huge distractions for buyers that can make or break whether or not they like your home. While you may love the large tiger photo in the dining room, it may scare off a buyer and should likely be put in storage until you move.

Declutter

Another distraction is clutter. While you may say your knick-knacks are not clutter, they can send a message that your house doesn’t have enough space.

For example, if you have collectibles sitting out everywhere, this may draw attention away from your ultimate goal. While these may be very important to you, they will likely just look like clutter to a potential buyer who is touring your home.

Everyone’s clutter is different. Our daily lives contain a lot of it! We have daily mail, car keys, loose change, toiletries in the bathroom and more.

For instance, let’s look at a kitchen counter. Many kitchen countertops are permanent homes to a coffee pot, a toaster, toaster-oven, a butcher block of knives, a canister of utensils, and a decorative bowl of often overripe fruit.

You may see this as a functional kitchen counter, but your buyer may view this as your kitchen not having enough storage space. Relocating these items can open up the space and make it look way more appealing.

Consider Professional Staging

Staging your home means bringing in a third party specialist with the objectivity needed to accomplish your goal. The best stagers will work with what you have, rearranging and relocating your belongings in order to present the property in its best light.

Sometimes home sellers take this personally. Don’t do this! A good stager will attempt to make your home look neutral and take away any items that may upstage the home itself.

It can be upsetting to see your home rearranged to suit the tastes of others. But if selling your home for the most money and in the shortest time possible is your goal, then it’s worth it!

Six Tasks You Can Do Immediately to Get Your House Ready to Sell

  1. Start the planning process. Consider getting a home inspection to see if any repairs are needed. If repairs are needed, hire a contractor for any major fixes that need to be done. You can also ask any local real estate professionals you may know for advice on whether or not specific repairs are worth the cost. Consider getting an appraisal if there is any question on the market value of your home.
  2. Clean and declutter. Thoroughly clean the entire home. This includes scrubbing tile (including grout) in the kitchen and bathrooms, cleaning hardwood floors, steam cleaning carpets and drapes, and getting rid of all dust bunnies. (Consider replacing any carpet with bad stains). If walls look dingy, paint them with neutral colors. Remove all family photos, magazines, and medications. If the garage is cluttered, remove items and store them offsite. This is also a good time to secure valuable items, such as cash and jewelry.
  3. Improve Your Curb Appeal. Be sure to power wash all siding and windows. If the exterior paint on your home is not up to par, then you may consider painting all shutters, trim and doors. Sweep the entryway and walkway, and clean the gutters. Trim shrubs, mow the lawn and rake leaves. Colorful flowers and new shrubs can also be planted. Add wrought iron window boxes for even more charm to your home’s exterior. Be aware of any unsightly toys or equipment lying in the yard. Clean up pet droppings, and repair any cracks in the driveway or sidewalk.
  4. Pay special attention to the kitchen and bathrooms. Replace old caulking around sinks and bathtubs. Also, remove any stains from sinks, toilets and bathtubs. Replace outdated hardware and organize the pantry and all drawers. Hang fresh towels and keep all toilet seat lids closed!
  5. Plan an open house. Get ready prior to the open house by installing LED light bulbs to brighten rooms. Plan for a place to relocate your pets on the day of the open house. Inform family, friends, and neighbors of the date and time. Advertise on social media. Put “Open House” signs on the front lawn and at nearby intersections with directions to the house. Create property description sheets and prepare important documents, such as homeowner’s association rules and inspection reports. On the day of the open house – sellers used to bake cookies – but now most burn scented candles. Offer light refreshments and turn off TVs. Open windows to let in fresh air and open curtains or blinds to let in natural light and show off views.
  6. Highlight your home’s best features. If your home has particular desirable features, make sure you show them off! For instance, if you have rugs covering up your hardwood floors, remove them. If you have a fireplace, make sure it’s in good working condition. If you have nice views, make sure the curtains aren’t blocking them and if you have a backyard pool area, make sure it looks clean and maintained!

Get Expert Guidance & Save Thousands When You Sell For 1% With SimpleShowing

Advice from people who have been successful in getting a home ready to sell is invaluable. There are definitely stressors involved at every turn, but hopefully, these tips will help you in getting your house ready to sell.

Whatever the situation, it is helpful to consult with a licensed real estate agent who does this all the time.

At SimpleShowing, we can pair you with an experienced agent in your area who can not only share the best tactics to sell your home, but they’ll also give you full support for only a 1% listing fee.

Contact us to learn about our full service listing and save $7,500 on average when you sell your home.

8 Tips for Finding the Best Mortgage Lender

How do you find the best mortgage lender for the largest purchase of your life?

With so many options, it can feel a bit overwhelming when it comes time to finding someone to finance your home purchase. How do you choose the right lender? Who will offer the best deal? Who will be available to answer all your questions?

Shopping for a mortgage can be stressful at the least. This is a long-term commitment which can take as long as 30 years to complete, so making the right decision is essential.

You may be able to find many companies willing to accept and process your loan application. But finding the best mortgage lender for you is about more than just finding a company that offers a low interest rate.

We’ve put together a few tips to help as you search to find the best mortgage lender for your new home purchase.

8 Steps To Find A Mortgage Lender

Before you contact a mortgage lender to get prequalified, it’s a good idea to take these steps to guarantee the best possible chance at getting the best interest rate and approval amount.

1. Review Your Credit Score

Before you start applying for mortgages, it is a good idea to give your credit a checkup. Your credit score is one of the largest factors lenders look at when deciding whether or not to approve your loan. It will also be used to determine how much they will lend you and at what interest rate.

To do this, you should pull your credit score and look at over your credit report. You are entitled to a free credit report once every twelve months.

Look through your credit reports for any errors, late payments, high balances, or delinquent accounts in collections. Making payments on time and using less than 30 percent of your available credit goes a long way in improving your credit score.

Knowing your actual credit score also plays a part in knowing which lenders to contact. If your scores are on the lower end, below 600, you will need to consider lenders who work with lower credit scores. If your credit score is below 580, you may have a hard time finding a lender willing to work with you. If that is the case, take steps to improve your credit before applying for a loan.

2. Lower Your Debt

Lenders also want to see that you can handle your current debt as well as a new mortgage payment.

Many lenders require a debt-to income ratio below 43%, though you may be able to find some programs that will allow a slightly higher percentage.

To find your debt-to-income ratio, simply add up all your monthly debts and divide by your gross monthly income. If your debt-to-income ratio is too high, try paying off any high-interest debts or credit cards.

In the end, the better your credit, the lower your interest rate, which means smaller monthly payments and less money spent in the long run.

3. Determine Your Budget

It’s also a good idea to go into the mortgage search with a budget. Lenders will pre-approve you based on your debt-to-income ratio, and may believe you can afford a larger loan than you anticipated. While it may be tempting to borrow more than you had planned, taking on a larger monthly payment than you can comfortably afford isn’t the wisest decision.

It’s important to know how much you can realistically afford to spend each month on a mortgage payment. Start with your current monthly bills like credit card payments, student loans, and living expenses. Then factor in other long-term financial goals such as savings, retirement, or your kids’ college fund. With all of those in mind, you’ll then want to consider your monthly net income. How much is left after paying all those bills and living expenses? Use that number to help determine how much you can reasonably afford to spend each month on your mortgage.

4. Research Your Mortgage Options

Once your credit is in order and you have determined your budget, our next tip for finding the best mortgage lender is to research your options.

If you are buying your first home, you may not be aware of the many options available to first time home buyers. Settling on the first lender you come across that will offer you a loan isn’t the best idea. There are several types of lenders to choose from and each has its own advantages and disadvantages. Understanding the major players in lending will help you make a more informed decision. Here are the most common types of home lenders:

  • Credit unions: Focused more on the community and relationships, these member-owned financial institutions have long offered favorable mortgage loans, but only to their members. If you have a local credit union in your area, become a member and ask about their loan programs.
  • Local banks: Generally less rigid than bigger mortgage lenders, local banks may be a good option but likely have fewer mortgage programs. However, with local banks, you tend to get more personal service and individualized attention.
  • Local mortgage lenders: These are local mortgage companies that don’t necessarily have the resources to make your loan, but instead rely on larger lenders to whom they will immediately sell your loan.
  • Big banks and mortgage companies: These are direct lenders such as Bank of America or JPMorgan Chase that have processed millions in mortgage loans. You will find competitive rates and terms here working with a loan officer of the institution.
  • Online lenders: Convenient and competitive, these lenders can be a competitive option but may lack the personal, one-on-one guidance. Online lenders are great options for someone willing to dig in and do the research to make sure they get the best deal.

When considering your options, make sure the lenders you are deciding between are registered in the state where you are shopping. You can do that through the Nationwide Multistate Licensing System Registry. Also, search the Better Business Bureau for unbiased reviews and information.

5. Get Recommendations from Trusted Sources

In addition to doing your own research, it can be a good idea to get recommendations from trusted sources like your real estate agent. Not only can your agent provide their preferred mortgage lender, but they may also have suggestions of other options that may be a good fit for your financial situation. If you go with the real estate agent’s in-house lender, let them know you were sent by your agent. Many smart loan officers will take that into consideration as they are working with you and may even reduce closing costs.

You may also consider asking friends and family who are experienced buyers for recommendations. But it’s a good idea to know the source before deciding how heavily to rely on that recommendation.

It’s also good to compare mortgage rates. Many trusted online resources comprehensively and objectively review mortgage lenders, including their fees and rates. By comparing mortgage lenders, you can easily segment them and explore top-performing companies to get the best deal.

6. Get Pre-Qualified

Now that you’ve taken all the necessary steps to put yourself in the best financial situation to get a mortgage loan and found some options for different lenders, it’s a good idea to get prequalified.

Getting prequalified means that the lender has determined you are a good candidate for a mortgage and will most likely be approved once you formally submit your application for a loan.

7. Get Preapproved for a Mortgage

Lastly, you will want to get pre-approved for a mortgage before you find your new house. When you get pre-approved, you will receive a pre-approval letter. This letter is beneficial and gives you an advantage over other buyers since it is evidence that you are a serious buyer who can actually afford to buy the home.

Different lenders will have varying qualifying standards and may offer different interest rates and fees on a given loan. Your pre-approval letter will show you the loan amount you qualify for, the interest rate they can offer, and any additional fees you may have to pay.

When applying for pre-approval with your top choices for lenders, you will be required to provide additional financial information as the lenders will do a more thorough review of your credit and finances than when you were prequalified.

Collecting these documents and information ahead of time will help prepare you for the application process. Here is a list of items that a lender will typically ask for:

  • Driver’s license or other government photo ID.
  • Social Security number(s) for you and any co-borrowers
  • Residential address history, as well as names and contact information for landlords for the past two years.
  • Bank, savings, checking, investment account information
  • Outstanding debt obligations, including credit card, car loan, student loan and other balances
  • Two years of federal tax returns, W-2s and 1099s
  • Salary and employment history
  • Down payment information such as how much you plan to put down and where the money is coming from

Once you have your pre-approval letter in hand, it doesn’t mean you’re in the clear. Don’t rush out and apply for a new credit card or sell your car. Lenders can re-check credit history or review your assets at any time during the loan process. Try to maintain a steady credit score until you have made your final choice of lender and closed the loan.

8. Read the Fine Print

You’re in the home stretch and have narrowed down your choices for a lender for your new home purchase. Our final tip to finding the best mortgage lender is to read the fine print. Skipping this step could be detrimental to your financial situation later on.

This is also a good time to check with your mortgage lender if buying discount points would be beneficial to you. When you buy discount points, you are essentially paying some interest upfront to help lower your overall interest rate.

As you are comparing your final loan estimates from the different lenders, you will see many different third-party fees. Appraisal fees, recording fees, loan origination fees, and title insurance fees, just to name a few. Lenders don’t set those fees, but it is important to take those costs into consideration as they will affect how much you will have to pay at closing.

Get $5,000 Towards Your Closing Costs with SimpleShowing

Before you buy, get connected with a SimpleShowing Agent who can give you an additional $5,000 on average towards your closing costs. SimpleShowing Agents can connect you with a preferred lender and help offset the upfront expenses of buying a home with our closing cost credit – $5,000 on average.

Contact us today to connect with an agent to help you find your new home.

The 8 Best Neighborhoods In Dallas, Texas

Dallas. Big D. Triple D.

Dallas is the eighth-largest city in the United States, where America’s Team was born, and the term “Super Bowl” was coined. It’s the namesake of the popular television drama that bequeathed the city its own theme song.

Don’t let Dallas’ iconic imagery mislead you. Dallas today is better described as a great American city trying to make itself even greater. And each of these eight neighborhoods plays a part in making Dallas what it is today.

>Related: Fastest growing cities in Texas

The 8 Best Neighborhoods in Dallas, Texas

In a city as large as Dallas, the variety of locations for buying a home is endless. While each area boasts unique qualities, we have considered individuality, location, desirability, and schools as factors in choosing these 8 best neighborhoods in Dallas, Texas.

1. Preston Hollow

When it comes to Dallas real estate, you can’t beat the big lots of Preston Hollow.

Preston Hollow is considered one of the most luxurious areas in Dallas. This neighborhood is situated near the North Dallas Tollway and Walnut Hill Lane. The residents here have access to some of the most prestigious private schools in Dallas.

Many of the grand homes in Preston Hollow were built in the 1920’s and 1930’s. Some of the most famous streets in the neighborhood include Strait Lane and Inwood Road, where many of the most stunning mansions in Dallas are located. Due to their early construction, many of these streets lack sidewalks and curbs, but are filled with massive, old oak trees. The average home price is $767,055, but homes can reach upwards of $30,000,000 in this neighborhood.

The home of former president George W. Bush and his wife, Preston Hollow is perfect for anyone looking for an upscale neighborhood in the city of Dallas.

View Homes For Sale In Preston Hollow

2. Lake Highlands

Lake Highlands is located in northeast Dallas. Lake Highlands is a very popular neighborhood for families and young couples. The neighborhood gets its name due to its vicinity to White Rock Lake. This location is perfect for families looking to settle down in the Dallas area, but still have access to the great schools and jobs in the suburbs.

With over 870 acres of parks and biking trails, massive live oak and pecan trees, and large, rolling hills, you can see why anyone would be drawn to this area. Especially with the median home value of only $389,000, it’s still affordable for first time Texas homebuyers.

The majority of the homes in this area are single story ranch homes, but there are other options for families searching for something larger.

Lake Highlands is the perfect neighborhood for residents who want to bring a bit of small-town charm to their Dallas address.

View Homes For Sale In Lake Highlands

3. Lakewood

This iconic neighborhood is situated near downtown Dallas and west of White Rock Lake. This neighborhood’s location makes it prime real estate for homebuyers.

Lakewood is known for its casual luxury and beautiful homes which have an average price of $837,000. Original Craftsman, Bungalow and Tudor-style homes are widely seen here. The newer homes have been mixed in while staying true to the style of the original neighborhood.

Their award-winning elementary school, which is rated 10/10 by Great Schools.com is just one of the many reasons why we chose Lakewood as one of the 8 best neighborhoods in Dallas, Texas.

View Homes For Sale In Lakewood

4. White Rock

Home buyers looking to enjoy the great outdoors and live near Dallas’ only lake flock to the White Rock neighborhood. In White Rock, they can enjoy peace and quiet by the lake and take advantage of the many trails for jogging and biking. Afterwards they can return to their Craftsman and Tudor-style homes with architecture original to Dallas.

Waterfront homes can list for a few million dollars, but with access to Dallas’ only lake, and located in one of Dallas’ better school districts, White Rock is easily one of the 8 best neighborhoods in Dallas.

View Homes For Sale in White Rock

5. University Park

While University Park received its name from its main feature, Southern Methodist University in which it houses, this area is way more than a college town.

Quiet streets, manicured yards, and gorgeous homes are just a couple of the reasons that people are drawn to this town-within-a-city.

Homes in University Park are on the high-end, but many view its proximity to downtown and its many amenities to be worth the cost. Those that are fortunate enough to call University Park home also benefit from an amazing public school system that starts at kindergarten and continues through high school.

View Homes For Sale In University Park

6. Uptown

Uptown is next on our list of the 8 best neighborhoods in Dallas, Texas. It’s where innovation is happening.

Immediately north of Downtown Dallas, this neighborhood is a great place for anyone looking for an urban environment. This area is one of the most pedestrian friendly neighborhoods in Dallas – thanks to the Mckinney Avenue streetcars making the high-end boutiques, outdoor parks, restaurants and bars readily accessible.

With direct access to The Katy Trail, residents can hop on the paved trails for biking, jogging, or walking their dog, or even stop for the best burgers at Katy Trail Ice House.

While residential homes in this neighborhood are scarce, luxury high-rise condos and townhomes abound. The median home value is on the higher end at $450,000, but the short commute might just be worth the extra money.

View Homes For Sale In Uptown

7. Bishop Arts District

This Dallas neighborhood is the largest art district in the United States and is now an entertainment destination.

The Bishop Arts District is 10 minutes south of downtown Dallas and is full of museums, unique venues, art galleries, and quirky independently-owned boutiques.

Colorful alleyways covered in murals showcase the many international restaurants, cafes, and a variety of interesting bars. Nightly entertainment can be found at Bishop Arts Theatre Center or the Kessler Theater. The Bishop Arts District is the perfect neighborhood for anyone looking for a lively social life.

View Homes For Sale In Bishop Arts District

8. Deep Ellum

Dallas’ Deep Ellum neighborhood boasts a thriving nightlife.

Once known for hosting great jazz and blues artists such as Bessie Smith and Blind Lemon Jefferson, it’s now an urban neighborhood with live music, restaurants, arts centers and bars.

Named one of the top neighborhoods in Dallas by Niche, Deep Ellum is a great neighborhood for anyone looking for a rich cultural environment.

View Homes For Sale In Deep Ellum

Connect With A Dallas Real Estate Agent & Save Thousands

Are you thinking about moving to Dallas? The cost of living in Dallas (as in most of Texas) is lower than in many other large metros, which is why this city attracts many to move. Moving with local movers will definitely make your task easier, as they will simplify what might otherwise be a stressful relocation process.

Whether you plan on moving because of work, a relationship, a better school district, or any other reason, any of the 8 neighborhoods we just covered would be a great place to live in Dallas. To start exploring one right away, check out these discounted mortgage rates with our local and national partners and lenders.

Before you start shopping for your dream home, check out our closing cost credit for homebuyers in Texas. And if you’re planning to sell a property in the Lone Star state, learn more about the real estate commissions in Texas.