What do you need to know before you become a homeowner this year?

To purchase a home there are many steps and preparations you must go through before the buying process. While mortgage rates are at the low right now it is important to complete all of the steps before you start looking at homes.

1. Get preapproved- Meeting with a loan specialist to see if you can get preapproved is a proactive way to stay ahead of the game. If you aren’t sure if you have been preapproved- check your credit report to see if your application was submitted to an underwriter. If it has been, then you are good to go!

2. Don’t alter your credit habits- Avoid opening/closing credit cards and keep all balances with normal range.

3. Avoid Moving Funds- Put off moving funds until after you’ve closed on the home. Do not cash in on any investments, retirement accounts or CDs. Do not use your savings to pay off any debts or fund a CD.

4. Get Your Down Payment Gift Early- If a family member is willing to help you put a down payment on your home, deposit the money into your account more than two months prior to applying for a loan.

5. Create a PDF of all documents0 Include all bank statements for checking, savings, and investment accounts, pay stubs, W-2s, tax returns and canceled rent checks.

6. Be prepared to write letters- If there are frequent movements in short amount of time or substantial monetary gift- be prepared to explain that in a letter to your loan officer before your loan gets approved.

7. Cut Costs on Mortgage Insurance- With the new Fannie Mae and Freddie Mac mortgage programs only requiring around 3% for a down payment can lead to higher insurance premiums through the FHA. Consider opting for private mortgage insurers who generally have cheaper premiums.

What are three tips all first time home buyers need to hear when submitting their tax return for the first time?

Buying your first home is exciting and something you can check off your bucket list, but it comes with the headaches of owning a home including filing your taxes for the first time. Here are some tips to help you files your taxes:

1. Don’t procrastinate- Waiting until April 4th to file your taxes is not a great idea and can cause typos or overlooked information. Working with an online tax service you are able to start and stop your filing at any time with their save as you go feature.

2. Compare tax products before using them- Just because a tax product is free or cheaper than the other ones is not always the best solution when it comes to filing your taxes. Make sure you compare a few products before starting your taxes to ensure it is the right product for you.

3. Gather all of your forms and documents including Form W-2 from your employer, Form 1099 if you are self employed, Form 1098E from your lender for student loans, Form 1098-T for tuition paid scholarships or grants received, statements for retirement savings accounts and receipts for charitable donations.

Are you ready to invest in real estate?

Here are 6 tips to help you see if you are ready to invest in real estate.

1. Make sure you are financially ready. Ensure you have enough money to put down on the home and enough for emergencies in case something goes wrong on the home.

2. Set long-term goals that you can achieve. Set a clear and precise goal that can be achieved but is flexible depending on events that may occur.

3. Do your research. Make sure you know the neighborhood you are about to invest in to ensure you can foresee the coming trends and possible changes to the community. If you are planning to invest in a home you want a family to rent, make sure it is close to a good school and the commute is not long.

4. The location draws an audience. Selecting the correct location is key- ensure the area you are looking at is either an up and coming neighborhood or has attractions that draw people in.

5. Find an agent you can count on.

6. Research local differences in the property market. Whether you are going to turn your house into a rental property or an office space, make sure you are fully aware of all of the cultural differences you may encounter.

Should I exceed my budget for the right house?

First you need to determine what your budget is for your home based on your yearly income, debt, and other expenses. You will also have to determine what kind of debt you have- is it good debt or bad debt. Good debt is an investment; you’ll get back the interest you pay and then some (i.e. car loan, student loans, or even a mortgage). Bad debt doesn’t raise your earning potential in the long run. You’re financing today’s happiness at the expense of tomorrow’s security.

Next you need to determine how much you should save for the down payment on a house. It is recommended you save about 20% of your income and allocate it to a “rainy day fund,” pay off high interest debts, ax out your 401K/IRA, and investments.

Finally, ask yourself “how much should I spend on a home?” It is recommended you spend about 25% of your income on mortgage payments. Finding the right home on your budget is ideal but exceeding that budget may be dangerous. A home that fits into your budget may be the correct and safe answer but it may not be the right home for you. Considering asking yourself if you want to live comfortably or if you want your all of your hard earned money to go towards your mortgage each month. The right house can be found within your budget or can be remodeled to be the perfect home for your family.

What are the three features that drive curb appeal?

When you are looking to purchase a home or considering selling you want everything inside and out to look great. A potential buyer starts viewing the home even before they enter. If a home has driveways that are cracked or pitted with potholes, damaged front doors, and scuffed mailboxes it can significantly detract from a the overall curb appeal.

If your driveway is scuffed, cracked and has holes in it you may want to consider repairing or resurface it. The driveway is one of the largest visual elements along with siding, roof, and lawn. If a driveway is covered in debris it can also drive a potential homeowner away.

Although your mailbox may be one of the first things a potential homeowner will notice. Having a scuffed and damage mailbox may also drive them away, considering sprucing it up. A mailbox can also help identify your home when you are helping your guests find it. Consider painting your mailbox or even swap it out for something that compliments your exterior.

The front door is last feature that drives your curb appeal. If your front door is full of scuff marks consider giving it a fresh coat of paint, but don’t forget about giving the trim around your door a fresh coat. Adding new lighting and hardware can also change the look of your front porch.

Merry Christmas and a Happy New Year

Thank you for your continued support over the past year. This past has been a great year at PJ Morgan and we have you to thank for that. I will continue to work hard answering all of your real estate questions- if you have a question just let me know!

I am never too busy for your referrals from your family/friends and will help them as if they were my own family and friends. Keep me in mind as you come across your friends and family who are looking to make a move in 2015.

What are the top five appliances every homeowner wants?

Appliances can be a top negotiating item when it comes to closing the sale of your home. According to ratings collected by CNET here are the top five appliances that are in high demand.

1. Whirpool Dishwasher (WDL785SAAM)- Part of the 6th Sense Live smart appliance line, this dishwasher unit can tell you how dirty are! The dishwasher used a sensor wash cycle to determine how dirty the dishes are.

2. Panasonic Microwave (NN-SD997S)- This microwave warms up food quick and efficiently. It also produces high quality results that your whole family can benefit from!

3. Dacor Renaissance 30” Double Wall Oven- This double wall oven does not even compare to any other oven line. You will not find another oven with better and more powerful cooking performance.

4. Samsung Refrigerator (RF323TEDBBC)- The Samsung refrigerator includes spill proof shelves, humidity controlled crispers, power freeze/cool, water filter and external ice/water dispenser. It can even hold up to 32 bags of groceries.

5. GE Café Series 36-inch Cooktop Stove (CGP650SETSS)- The GE stovetop has a deep spill area under the cast iron grates and sealers over the burners allowing food not to be able to get trapped under. The grates are even dishwasher safe!