Start With Your Gross Income

Your total earnings are the first consideration when determining how much mortgage you can afford. The rule of thumb is that monthly mortgage payments should not exceed 28% of your total gross monthly income. Therefore, if your gross income is $8000 per month, the maximum amount that should be spent on mortgage payments should not exceed $2240.

Calculate Your Monthly Expenditures

After calculating your gross income, you need to calculate your monthly expenditures before deciding how much mortgage you can afford. When calculating expenses, include all other existing debts that you may have. These could be car payments, student loans, credit card debts, and any other personal loans. A mortgage lender may also want to know your financial commitments such as child support, alimony, or spousal support before finalizing your loan request.

Determine Your Affordable Mortgage Range

With your gross monthly income and expenses in hand, you can now determine how much mortgage you can afford. This calculation is not as hard as it seems, and you can easily accomplish it using various online calculators. Financial institutions and real estate platforms have calculators that can help you determine the price range of homes that you can realistically afford based on your total income and monthly expenditures.

Consider a 20% Down Payment

A 20% down payment should also be considered when purchasing your first home in Southern Maryland. Although having a lower down payment may seem like a good option, it results in higher mortgage rates and can increase your monthly expenses. Financial advisors recommend a 20% down payment because it helps keep your mortgage repayment costs down, which will help lower your total debt over time.
Buying a home is a significant decision, and choosing the right one based on what you can afford is crucial to your financial stability. In Southern Maryland, several factors influence the cost of a home, making it important to determine what you can afford before even beginning to go house hunting. Remember to keep your mortgage payment within 28% of your monthly gross income, and consider a 20% down payment when buying your first home. With these tips, you can make your homebuying journey more manageable and ensure financial stability in the long run!

If you’d like to get pre-approved for a mortgage, you can do that here; and if you’d like some recommendations for experienced, local Realtors, please reach out to me here:

Jeffrey Halbert – First Home Mortgage

2810 Laurian Lane
Suite 100
Dunkirk, MD 20754
(301) 327-5803
JHalbert@firsthome.com

The post Southern Maryland Borrowers: How Much Mortgage Can You Afford? appeared first on Jeffrey Halbert - First Home Mortgage.

Get Pre-Approved for a Mortgage

Before you start shopping for a new home, it’s essential to get pre-approved for a mortgage. This process will give you a clear idea of the price range of homes you can afford to explore, and it will make you a more attractive buyer to sellers. To get pre-approved, you’ll need to provide your lender with financial information such as your income, debt, and credit score. Once you’re pre-approved, you can start shopping with confidence, knowing exactly how much you can afford to offer when you find a house you fall in love with.

Connect With a Local Real Estate Agent

Once you know what you can afford, it’s time to start searching for your dream home. One of the better ways to go about doing this is to work with a local real estate agent. They’ll have access to listings that may not be available online yet, which will give you a head start on house shoppers who are searching on their own. A local Realtor will also be able to walk you through the whole home buying process from beginning to end, sharing their professional insights and advice.

Attend Open Houses

As soon as you’re working with a local agent, it’s time to attend some open houses. This is your chance to see your potential new home in person, ask questions, and get a feel for the neighborhood. Take your time during these visits and don’t hesitate to ask your agent for their opinion.

Make an Offer

After attending some open houses, you’ve likely found a home that checks all the boxes. And – you guessed it! – making an offer is the next step. Your real estate agent can help you put together a strong offer that will stand out to the seller. Be prepared for negotiations, as the seller will very likely counter with a different price or terms. But with your pre-approval documentation, you’ll be in a great position to close the deal on your dream home.

The spring homebuying season in Southern Maryland is a fun and exciting time, but don’t forget that proper preparation is key. By getting pre-approved and working with a reputable local Realtor, you’ll be able to find your dream home with ease. So, take advantage of the beautiful spring weather and prepare yourself for the homebuying journey ahead!

If you’d like to get pre-approved for a mortgage, you can do that here; and if you’d like some recommendations for experienced, local Realtors, please reach out to me here:

Jeffrey Halbert – First Home Mortgage

2810 Laurian Lane
Suite 100
Dunkirk, MD 20754
(301) 327-5803
JHalbert@firsthome.com

The post Spring into Homebuying Season in Southern Maryland appeared first on Jeffrey Halbert - First Home Mortgage.

What Does It Mean to Get Pre-Approved?

When you obtain pre-approval for a mortgage loan, you are essentially entering into an agreement between yourself and the lender that they will offer you a loan up to a certain amount depending on your current financial situation. This step helps lenders determine how much money they can lend you, based on factors such as your income, assets, debt, and credit history.

Does Getting Pre-Approved Impact Your Credit Score?

The short answer is yes – getting pre-approved can affect your credit score; however, it only does so temporarily. This is because when you apply for pre-approval, lenders will usually perform what’s known as a hard inquiry into your credit report. A hard inquiry is when someone accesses your credit report with the intention of making a lending decision about you (in this case, whether or not to extend you a pre-approval). While this does impact your credit score negatively in the short term (usually no more than five points), it should not have too much of an impact over the long term if you maintain good credit habits going forward. Additionally, multiple inquiries in relation to obtaining mortgage pre-approval within a certain period of time (usually 45 days) count as just one inquiry on your credit report.

How Can You Protect Your Credit Score?

The best way to protect your credit score while obtaining pre-approval is to shop around carefully. You don’t want to apply for pre-approval from multiple lenders since this will result in multiple inquiries being made on your credit report all at once, and this could have serious negative consequences for your score over time. Instead, research different lenders thoroughly before choosing one, and make sure that their terms are favorable for both parties involved before applying for pre-approval with them.

For anyone considering buying a home in Southern Maryland, getting pre-approved is an important step in the process; but it shouldn’t come at the expense of damaging your credit score unnecessarily. The key is having realistic expectations about how much money you can borrow and shopping around carefully before choosing just one lender who offers favorable terms that work both ways. That way, any potential dips in your credit score due to hard inquiries will be kept to a minimum, while still helping you move forward to purchasing the home of your dreams.
If you’d like to get pre-approved for a mortgage, or if there’s something else I can be of assistance with, please reach out to me. I’m always happy to help.

The post Southern Maryland Homebuyers: Will a Pre-Approval Hurt Your Credit? appeared first on Jeffrey Halbert - First Home Mortgage.

Pets

Walking up to a home for a showing you want to take in curb appeal and feel welcomed.  A territorial dog barking over the fence or at the front door may scare some and irritate others.  It is best to take the dog with you or contain them in a crate during showings. Some sellers may leave their fur baby in a garage or one bedroom during a showing, this too is a turnoff.  If a potential buyer cannot inspect every area of the home, they may walk away feeling as if the seller is hiding something.

Aesthetics

To each his own when it comes to home decor but if you are looking at attracting a buyer, it is best to decorate or stage to the taste of the masses. Repaint any walls that may have bold and bright colors to a more neutral tone. Remove any busy wallpaper or stencils.  Remove bulky furniture that may make the room look smaller. Declutter shelves and countertops, organize your cabinets and storage areas, create a space that the potential buyer is able to picture themselves in.

Odor

No one likes an unpleasant odor. If your home smells of pets, cigarette smoke, mildew or mold, chances are you will sabotage your sale. Ask a favor of a friend or your real estate agent to bring a fresh nose in for a sniff as you may not be able to detect the smell yourself. If an odor is detected, take action to eradicate it. Paint the walls or remove or shampoo your carpets. Don’t try to mask the smell, get rid of it.

Cleanliness

Make sure your home is thoroughly cleaned. This is especially important in your kitchen and bathrooms as any ounce of grime is an instant turnoff. In your bathrooms, scrub the grout, clean the tiles and basins, make sure the toilets sparkle. Go the extra mile and change out the shower curtains and towel holders.  In the kitchen, line your cabinets so they look fresh and clean.  Clean the oven, remove any signs of grease, clean out the refrigerator and organize any food that goes back in.  Remove your small appliances from your countertops, the more counter space the better. This extra effort makes a huge difference in the viewing of your home.

Light

Dark and crowded rooms are a huge turnoff for buyers. Remove bulky furniture and heavy dark curtains. Accentuate all of the natural light you can, adding additional lighting if need be. If you notice the natural light is being blocked by a tree limb, cut it back. Clean your windows so they sparkle. You want your home to be bright, pleasant, and welcoming.

Outdoor Clutter

Curb appeal and outside space is a big plus for buyers, so it important to spruce it up and remove any clutter you may have lying around. While a tire swing is cute and appealing, a stack of used tires is not. Create attractive and usable spaces outside. Maybe some garden beds in the front of the home and patio space with seating in the back.  Roll up the hose, clean the gutters and rake the leaves. Cut the grass, pull the weeds and plant some flowers. With a little elbow grease, your outside space could be the key to selling your home.

If you’d like a recommendation for an experienced, local Realtor, or if you’d like to get preapproved for a mortgage prior to shopping for your next home, please get in touch. I’m always happy to help.

The post Southern Maryland Sellers: Watch Out for These Common Buyer Turnoffs appeared first on Jeffrey Halbert - First Home Mortgage.

First Impressions

First impressions are important, but they aren’t everything. Many buyers will overlook properties with overgrown landscaping and unattractive entries because these things set the tone for them. When you have a more open mind, you know that these are often very doable fixes. If you’re open to putting in some time outside or have the budget to hire some landscapers, don’t let a lack of curb appeal cause you to overlook a great home.

Character Features

Some older homes may not be as well taken care of and certain features may be hidden behind furniture or overfilled with belongings. Built-in bookshelves and other unique detailing can really add an element of charm to a home, but when they’re not being well used, it’s not always easy to appreciate their beauty. While you might have to use your imagination to envision how you would use them, these types of features can be a real find.

Property

How much space will you get with your home? Would you have the yard space for a patio or a shed? Would you be able to put on an addition if you decided you needed more space? For some buyers, these are important questions. Finding a property that has the space for you to expand and get creative can give you more opportunities to make it their own.

Storage

What does the house offer in terms of storage? Is there a large basement or attic space? Not only do these allow for storage, but many hold the potential for finishing into additional living space. Whether it’s a playroom for the kids or a man-cave for dad, these larger storage rooms can often be transformed to meet your needs. Other types of storage are worth paying attention to as well. Larger closets and built-in shelving can be features that some buyers overlook.

Open Layout

We all have different tastes. Maybe the sellers didn’t make many changes to their home before showing it, and their style is much different than yours. Don’t let the surface level fool you. Especially if the home has a more open layout, you’ll have the flexibility to create your own setup that works for you and your family. If the layout offers some flexibility, try to imagine the different ways in which you could arrange your furniture and make things feel more comfortable.

Sometimes all a home needs is a fresh eye. From dated decor and cluttered layouts to overgrown front yards, there are many things that can cause a buyer to miss a home’s potential. While it’s important to look into the structural integrity of the home and ensure you’re not signing up for more work than you can take on, often, some simple cosmetic fixes can be transformative.

If you’d like a recommendation for an experienced, local Realtor, or you need to get preapproved for a mortgage, please get in touch. I’m always happy to help.

The post How Southern Maryland Buyers Can Spot a Home With Potential appeared first on Jeffrey Halbert - First Home Mortgage.

Prep Your Home

You want to get your home ready as if you were having an in-person showing. This means going through the list of cleaning, organizing, and removing some things like large family photos that may make it difficult for buyers to imagine themselves in the space. While you don’t have to create a completely blank canvas, you want it to be easy for viewers to see themselves in your home. You might also think about rearranging furniture, grabbing a few plants, and making your home feel as spacious as possible.

Make a Script

While you certainly don’t need to read a script word for word, it’s important to have a list of the points you’ll want to hit as you walk through your home. What are the things you want to make sure viewers know about? What details are important to mention? Getting clear on these things in advance is key.

Do a Test Run

Whether you record yourself giving a practice tour or you video call a friend and ask for their suggestions, doing a test run is important. Will it just be you holding the camera? Or will someone else hold the camera and you’ll lead the tour on screen? What is the most logical order to progress through the home? How long do you want the tour to take? These are all things you’ll want to hammer out ahead of time.

Promote

Like any open house, virtual ones require promotion. Social media is a great place to start for this. If you’re working with an agent, they’ll help with promotion as well. Either way, it’s important to get the word out so that potential buyers are aware of the date and time.

Schedule

Speaking of date and time, what kind of schedule will you offer? While an in-person open house may be in a single window, a virtual tour may need a bit of a different structure. Perhaps you host several tours throughout the afternoon each starting on the hour, for example. Making a clear schedule so that buyers know when they can tune in is important.

Save

Finally, it’s a great idea for sellers to record one of their virtual open house tours. This way, they can use that video in additional online promotion. Maybe a buyer wasn’t able to make it to one of the time slots you offered. When you have a recording you can share afterward, you can reach more people.

Have you hosted or attended a virtual open house? What do you think the biggest challenges are? What about the benefits? I’d love to hear your thoughts!

The post Getting Ready for a Virtual Open House appeared first on Jeffrey Halbert - First Home Mortgage.

When rates fall, there seems to be no scruples. Some lenders solicit you with promises of quick savings, but may actually be sticking you with more debt in the long-run.

Here are a few things to consider before refinancing your mortgage:

1. Know your Goals!

Knowing your goals is the first step to knowing whether refinancing your mortgage is “worth it”. Are you looking for a better rate/payment? Are you trying to remove mortgage insurance? Shorten the term of your loan? Do you need cash-out for home improvements, debt consolidation, or investing in other properties? Are you trying to remove someone else from the loan and/or title (i.e. divorce situation)?

Having a clear idea of what you’re trying to accomplish makes it easier to find the right solution. There needs to be tangible benefits to justify restructuring your biggest debt, resetting the mortgage, and incurring the costs. With my clients, we always look for short and long-term benefits, and skipping the next payment isn’t one of them. Sometimes, there may be less expensive alternatives than refinancing to accomplish the same goals.

2. Do the Costs Justify the Savings?

The majority of homeowners are simply looking to lower their payment when refinancing. If that’s the case, you can use a simple calculation to see if it makes sense — take the sum of the closing costs and divide it by the monthly savings. I use this math to find the ‘break-even’ point, or how long you’d need to make the new payment to recover the costs of the initial investment. Usually, we want that ‘break-even’ period to be no more than 24-36 months. Studies show that most homeowners are out of their loan and/or house in just over 4 years anyway. If it takes longer to make up what you incurred in costs, or if you’re looking to sell the home soon, you may want to rethink the refinance.

3. Does your Loan Officer have your best-interests in mind?

When a lender is selling the “best rate” in town, there’s usually not much else to offer. How long has this loan officer been in the business? How many times will your loan get handed off once you sign papers? Is your loan officer asking about your future plans to understand your complete financial picture, or are they insistent on highlighting monthly savings without taking any ramifications into account?

There are many documented stories where homeowners start out looking online, or maybe they receive a call one afternoon and decide to give it a shot. Everything sounds so good at first, and then the horror show starts. Appraisers are coming from out of town, you’re asked to resend documents over and over, and then right around the time of your scheduled settlement date, you find out you’re not able to close. The original Loan Officer who started the loan can’t be reached, and all this comes after a credit inquiry, appraisal fee, and so much time and energy wasted. The golden rate that was offered at the beginning goes unrealized. I usually get the call after. I’ve seen the movie many times.

So as rates fall and refinancing is on the mind, figure out your goals first. Do the math, and make sure your loan officer is asking the right questions concerning your long-term financial health. And remember, if it’s too good to be true, watch out.

Recent Reviews Posted on Zillow:

I wanted to take advantage of low rates. I didn’t want to have to jump through a bunch of hoops, or have the Refi be a hassle. It was the easiest Refi experience ever. Jeff Halbert made this happen. Thanks Jeff. —Ronnie K.

Jeff has helped me refinance my mortgage for more than once since 2001. Whenever I consulted him with my financial plan, he has provided me with an honest and unbiased opinion. As he has been very trustful, I will undoubtedly contact him again whenever I need his professional opinion. –-Hiroshi S.

I trust Jeff with my life! I’m so happy we got to work together!! Fast, thorough, and friendly service! Smart and has an awesome team working with him to get the job done!!! —Janine G.

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