” The Top 3 Things You Need to Know Before Financing A New Home “

There are many details you should be aware of before you finance a new home. The process is complicated and you may feel overwhelmed by everything you will need to learn. Here are three important points you should remember when getting started.

  1. Become familiar with home costs: This refers to the payments you will be making on the home. The four main types of payment you should become familiar with are principal, taxes, interest and insurance. The principal when paid will lower your balance monthly. Paying the interest will go towards the fee assessed for borrowing the money. With the property, there will be taxes that are determined by the county. Finally, there is a payment for insurance, which is required when you purchase the home. In some cases, you will also be responsible for a homeowner’s association fee due monthly if your home is located in a planned unit development.
  2. Research your credit history: If you want to secure the best possible mortgage you should ensure you have an excellent credit report. What are lenders looking for? They are looking for payments that are made on time and a full and strong credit history. The more credit history the better. It is suggested that before attempting to buy a home you should open new accounts months in advance. We suggest a free credit report to see where you currently stand before applying for a mortgage.
  3. Learn requirements of lenders: It is important to remember that lenders will examine all facets of your life. They will need the following: your full name, address, date of birth, social security number (SSN), and age of your children if applicable. They will dig a little deeper by researching your employment history, pay stubs, tax returns, bank statements and any other legal or financial documents you may have filled out in the past. Most lenders will provide you with a list of needed paperwork before you get started. You should be prepared to follow the checklist they provide. In fact, we suggest you follow it exactly as instructed and outlined by the lender. Diverting from the requirements will only prolong the situation. If any documents need further instructions you should be able to defend any past dealings easily. Simple Home Solutions is here for you if you have any questions regarding this process. Contact us today.

” What Condition do you want you’re House In? “

There is no end to the amount of improving you can do to your house before renting it out. The problem becomes learning when to stop. When is good enough, good enough?

A house should be clean, empty (unless you are offering it “furnished” which is uncommon) and free from any major repairs at the time the tenant moves in. Be sure everything is up to code, to the best of your knowledge. Have a professional carpet cleaner clean the carpets before showing the property.

I recently posted this question (how much should you improve your property before putting renters in) in the Edward Casey Blog, and here are some of the answers I got:

“On deciding how nice to make a rental in preparing it for rent, I have two primary areas I consider: What kind of return will I get from the improvements I’m considering and how much time and aggravation will it save me (if I do the improvements)?” -Jeffrey Long

“I try to have competitive advantages that aren’t easily destroyed. Vacancy is the devil, and if little things like garbage disposal will create less problems and give me an advantage, for not that much money, to me it’s a no brainer.” -Joe Delia

“We strive to offer a clean and better looking unit compared to the competition and we rent them competitively as well. Everything is done with a cost/benefit approach and to minimize repair and service calls.” -George Paiva

“It’s also important to understand the demographic that you’re marketing your property to. Just because YOU wouldn’t want to live in a lower quality residence, doesn’t mean there aren’t hundreds of people in that market who would be more than happy to. Your standards may not (and probably doesn’t) reflect the exact standards of the customers in your market.” -Seth Williams

Remember, the home does not need to be as fancy as you would want it to be if you were living there. Look around at other rentals in your area (via driving around or pictures online) and try to see what the typical quality is. Tenants will generally never take as good of care of your house as you do – so don’t spend too much time or money making unnecessary upgrades that will only be ignored or broken.

If you have questions about a certain upgrade, do what I did and post the question on the Edward Casey and ask. You may be surprised by the answers you receive.

” The Application Process “

Always give an application to every single person who is interested, even if you are not interested in them (this is another measure to ensure you will not be charged with discrimination.) Encourage them to fill it out there, but you will probably find that the applicant will usually want to fill it out later and drop it off or mail it to you. I try to discourage this, as it adds a lot of time, but sometimes the tenant will want to think about it, so have a plan in place to deal with this.

” Pre-Screening the Tenants “

When you receive a phone call from a prospective tenant, always pre-screen ahead of time this means to try and qualify the tenant over the phone before spending time going over to the house to show them. The easiest way to do this is by setting rental criteria and explaining that criteria over the phone. My criteria look like this:

  • The gross monthly income must equal approximately three times or more the monthly rent
  • Applicants must have a favorable credit history.
  • Applicants must be employed and be able to furnish acceptable proof of the required income.
  • Applicants must have good references concerning rental payment, housekeeping, and property maintenance from all previous Landlords.
  • We limit the number of occupants to two per bedroom (per State law)

You can read this list over the phone to the prospective tenant and ask them if they meet these qualifications. If they don’t – don’t rent to them. These qualifications are designed to take the emotion out of renting to someone, so stick with them. By allowing tenants to move in who don’t meet your minimum qualifications, you are only setting yourself up for failure later on.

A note on discrimination: Be sure to not discriminate when you are advertising and screening for tenants. Federal law defines seven protected classes of people that you cannot discriminate against, which includes a person’s race, skin color, sex, national origin, religion, disability or familial status. You cannot even ask questions about these terms without appearing discriminatory – so don’t do it.

” How to Rent Your House: The Definitive Step by Step Guide “

Are you looking forward to phone calls at 3am, consistently late rent, drug dealing tenants, and costly evictions?

Of course not anyone wants to be a landlord with those problems. So why do so many landlords find themselves in this kind of trouble? The answer, I believe, is that most of these landlords never learned the correct way to rent out their houses from the beginning many look at the process of filling a vacancy like the “pregame” show – but in reality, getting your house rented IS the game. If you learn how to rent your house intelligently from the beginning, you can avoid years of headache later.

Whatever the reason is you’ve decided to rent your house out, the simple fact is: you want to do it right.

  • Perhaps you’ve tried selling but the market is too soft.
  • Perhaps you’ve been temporarily transferred out of the area for work.
  • Perhaps you owe more than your house is worth and can’t sell.
  • Perhaps you’ve realized the incredible wealth building opportunities that renting a home out can provide for your financial future.

Chances are – you’ve heard horror stories from accidental landlords about costly evictions, destroyed properties, professional tenants from hell, and all the reasons why you should not rent your house out. While these stories receive the most press and attention – the fact is, every day millions of landlords are renting out houses to great families across the world. While all hassles can’t be eliminated, by following the tips, tricks, and techniques outlined in this guide, you will be able to minimize those hassles and turn your house into a profitable venture.

Whatever your reasons are for learning how to rent your house out, this definitive guide is going to walk you through, step by step, how to rent your house with the least amount of stress and the best results.

” How to Rent Your House to the Best Tenants “

The most important decision you make that will determining the success or failure of your rental is the person you put in. A bad tenant can potentially cause years of stress, headache, and financial loss – while a great tenant can provide years of security, peace, and tranquility. Don’t underestimate the important of renting to only the best tenants. You are reading this guide because you want to learn how to rent your house. Finding the best tenants is how to make that rental enjoyable.

” We can help you “

We can help you and your family:

  • Buy and sell your House in Houston TX
  • Stop Foreclosure
  • Relocate to a Home of your choice in Houston TX

If you are planning a property sale or purchase do the right thing –contact us; we’ve been trusted before because we have delivered before.