How Lenders Determine the Type of Home You Can Afford

There are a variety of opportunities in the Greater Phoenix real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

One question we get all the time is how mortgage lenders determine how much of a home you can afford. When it comes down to it, there are really 4 criteria that lenders look at to determine this - they are what we like to call "The Big 4":

1. Credit Score: 
• Credit scores have a broad range of about 500-600 points. The higher the number the better. Anything over a 700 is going to get you the lowest interest rate and the lowest down payment. Even if your credit score is not perfect, there are still options for you to explore in terms of getting a good loan.
2. Debt-to-income ratio:
• Your debt-to-income ratio is a figure determined by how much money you owe vs. how much money you make. For example, if your debts are $3,000 a month and your income is $6,000, your debt-to-income ratio is 50%.
3. Down Payment:
• Depending on the criteria, your down payment may affect your interest rate, as well as your monthly payments.
4. Income:
• The single biggest factor mortgage lenders look at is income. Simply put, the more income you have, the more home you will be able to afford.

Thanks for checking in with us, we will talk to you next month! Meanwhile, if you have any questions about mortgage lending or what's going on in the Phoenix real estate market, please give us a call. We would be more than happy to help you!

Keep Your Home Safe While Away on Vacation this Summer

There are a variety of opportunities in the Greater Phoenix real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

July is here, and many of us in Phoenix are taking time away from home to get out of the heat. We thought we would share some tips with you so you can feel comfortable leaving your home unoccupied for an extended period of time. Here are a few things you can do to ensure your home is protected:

1. Let your neighbor know you're leaving town. Make those who live around you aware you'll be gone on vacation. They won't police your house, but they'll certainly give it more attention than they would otherwise.
2. Don't tip people off online. People don't usually think of social media in this way, but it can easily tip-off potential burglars. Be sure to be careful what you post online, especially if it concerns your trip.
3. Leave the lights off. If the lights are on for an extended period of time, its a tip-off that the house is empty. Invest in a timer, or simply leave them off.
4. Stop your mail. Nothing says you're gone like an overflowing mailbox. You can always pick your mail up at the post office when you return.
5. Unplug your electronics. This is a smart and simple way you can avoid electrical fires, while also saving a little bit of money on your electrical bill.
6. Remove your spare key. If you have a hideaway key, either put it in a safe place inside your home, or have a friend or neighbor hold onto it. There's no better way to make the burglar's job easy than by giving him the key.

We hope that these tips will make you feel better while you're away. As always, feel free to give us a call if you are interested in buying or selling real estate in the Phoenix area. Have a safe and happy summer!