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12 Home Improvement Tips- Essential for Successful Home Improvement or Remodel

One of the best investment is to invest in your home and add value to it. Home improvement or home remodeling has no end. Homeowner of every home has a wishlist of home improvement tasks. Whether you do it yourself or hire remodeling professionals, success of a remodeling project depends on preparation and plan. home remodel birmingham                                                                                                     Image Source: http://www.Cahabarivertrading.com

The following are the most important tips for successful home remodel.

Set your goals- Home improvement with a purpose of attracting home buyers is different from routine home improvement. If you know your goal for home improvement project and you know how to get their, your home remodel is going to be a success.

Plan accordingly- The first step of your home improvement project would be to make an effective home improvement plan. Your plan will help you meet the goal, at the end of the project.

List the Tasks- Write down all the tasks you think you would need them done. If you have too many tasks in the list, It is better not to do everything at once, instead prioritize.

Set your budget-Decide how much you can realistically spend. To keep the home remodeling budget affordable, Decide what must be done. Eliminate unnecessary tasks and this is how you can make sure your home remodeling project is focused and is within budget.

Get Finance- if you will need. Whether you will use money you have set aside or money from a home improvement loan, you’ll need to consider the complete project and add a contingency of at least 10 percent of your total, which is a cushion for unexpected or unplanned expenses. Financing should be arranged in advance if you need it. successful cash flow management is essential to make the contract successful.

Decide whether to Use mortgage broker or use Bank for home improvement loan- There are many reasons why you should choose mortgage broker for a home loan or home remodeling loans. Mortgage brokers who are also lender are the best for you. They can offer more than 200 different loan programs. They can find you a loan that fits your situation — even if you have a bad credit history. Ask yourself who can give you a better deal and who you would be more comfortable with.

Decide whether Hire Contractors for home remodeling or do it yourself-‘DIY vs home improvement professionals’ is an old debate. If you have the knowledge, skills and you have time in the world, you won’t be able to do the work as good as professional. So it is always better to hire the professionals. They can work more efficiently than if you were to do it yourself.What FHA says about borrower wants to do any work “a borrower doing their own work can only be paid for the cost of the materials. Monies saved can be allocated to cost overruns or additional improvements”

Hire quality and reputed contractors who are local- Quality contractors aren’t necessarily available right away. It is always good to start doing research and contractor selection process in advance. Hire local contractors. For example, if you are planning to replace rotten wood and your home is located in Birmingham, then  replace rotten wood in Birmingham would be best choice for you.

Know home improvement specialists in your area. Local contractors would be the most affordable choice for you as they won’t have to commute from distance.

Have your preferred materials- Order your items, have all the needed items on hand and inspect them for faults. Make sure when you are purchasing your home improvement supplies and tools that they are what you want and not what the professional contractor or sales clerk is pushing you to buy.

Keep track of the progress of the project- Keeping track is as important as setting goals. We keep track of the progress to stay on track.

Set the timeline for the project- Renovations or remodeling takes a long time. As a home owner before you get started on your own renovations, it is always good to set a timeline for your project. Timeline will help you keep track of the progress of your project and also help your contractor accomplish the tasks on time.

Schedule the work- If the project involves different types of work you can schedule things so only one contractor work in your home.

The above 12 tips, if followed can make any home remodel a success. The most important is your goal, plan and implementation.

Manual Tobias  is the original writer of this article.

Related Post: How home remodeling can be affordable and creative

Mortgage Thumb Rules

Mortgage Rules of Thumbs

Mortgage thumb rules are  ready rules  which are learned from  experience and are based on commonsense applied  in the field of mortgage home loan. The fact is most of us do not have time to carry out study in depth about mortgage or home loan. But if we follow the mortgage thumb rules there are little chance that we would do wrong. The following are some of the most popular mortgage thumb rules.

Debt to Income Ratio: You should not put more than 36 percent of your income toward debts (mortgage payments, car payments and credit card payments), 31 percent toward taxes and then have 33 percent for everything else (including savings or investments).

Affordability: You should buy a house that costs no more than two and a half to three times your annual income. For example, if you earn $100,000 per year, you shouldn’t spend more than $250,000-$300,000 on a home.

Emergency fund: Your emergency fund or saving in cushion safety account should equal six months’ worth of household expenses. A larger rainy-day fund can  cover a lengthier period. Saving an emergency fund is first priority; Paying  off high-interest debt is second priority; and  investing should be last.

Retirement Savings: You will need to replace your pre-retirement income by 75-80%. That means, if you make $80,000 the year before you retire, you should expect to have a little over $60,000 in income during retirement.

When to refinance: In the Old Days, the rule of thumb was to consider refinancing your home when interest rates dropped by 2%. But today, Closing costs are low, and in this situation it often makes sense to refinance your home when interest rates have dropped by 1% from your current mortgage.

Tax: When it comes to taxes, don’t try to cheat. Pay what you owe. Claim all the deductions you deserve, but don’t try to stretch things. You can   borrow from private sources to immediately pay your liability in full. If you pay tax liability by installment,  It is recommended that you make the largest monthly payment possible because your tax liability will continue to accrue interest and applicable penalties until paid in full.

Buy home affordability- How much you can afford?

Home affordability means Estimate of the maximum amount of financing you can expect to get when you begin house hunting. In other words it is the ability to repay the mortgage.mortgage home loan

You can determine how much house you can afford by analyzing your income, debt, and the current mortgage rates. Before you look at homes, First thing you do is learn about the basics of home buying or mortgage lending. Know how much you can afford. As a potential home buyer. Your affordability would depend on the following:

Your income: Include all income before taxes,

a.  Salary that comes from primary, second or part-time job, commissions, bonuses, overtime, tips,

b. Rental income,

c. investment income,

d. Other income for example retirement or veteran’s benefits, disability payments, alimony, child support.

The income  which can be verified as stable, reliable, and likely to continue for at least three years are considered as income for the purpose of home loan.

Your Debts : Includes your bills, loans, credit cards, and other debts.

Your debt-to-income-ratio : The debt-to-income ratio (DTI) is expressed as a percentage and is your total “minimum” monthly debt divided by your gross monthly income. DTI helps lenders determine your eligibility for receiving a mortgage based on your debt-to-income ratio.The lender uses your debt-to-income ratio to determine maximum loan amount that you can afford. Any DTI less than 36 percent is considered workable by most mortgage professionals. If the DTI is higher than 36 percent, it can be difficult to qualify for a mortgage. The lower your DTI, the more you can borrow and the more options you’ll have. A DTI of 20 percent or below is considered excellent.

Housing-expense-to-income ratio:
Housing-expense-to-income ratio is the percentage of the monthly income that is spent on monthly housing payments. A good rule of thumb is to keep your housing expense level at or below 28%.

Credit history and Credit score:
You pay your bills, loans, credit cards, and other debts on time means you have a good credit history. Mortgage brokers or Lenders  examine potential home buyer’s  payment habits before deciding to loan him money. Both credit history and credit score are checked before approving your homeloan application. You can always check your credit history and keep it error free.

Assets and available funds:
You will need  funds for a down payment and closing costs. In some cases, you would be able to use gift funds toward closing costs and all or part of the down payment. In many cases you will also have to demonstrate that you have additional funds in your accounts to cover several months of mortgage, tax, and insurance payments.

You can instantly draw a picture on your home affordability. The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary.  You can also try accessing Home Loan Learning Center Information on credit scores and reports, cost comparisons, and
steps to take to qualify for a loan. http://www.homeloanlearningcenter.com . It is good to  know your home affordability as it is part of the basics of mortgage home loan. Mortgage brokers and Lenders consider these factors for determining your home affordability.

The best way to determine how much home you can afford is use calculator and let  Mortgage Calculator do the maths for you.

Introducing Home Loan Mortgage and Buy Home Guide in California

About 60% Americans think buying home is a much better investment at present than 2 to 3 years ago. For most people, the purchase of their home will be their single greatest expenditure.

Buy Home Guide California

Buy Home Guide California

If you have the cash and your financial adviser has advised you to buy home in cash because that makes most financial sense for your situation only then you wouldn’t have to worry about mortgage or home loan. Number of people who can afford to buy home paying cash are very less. We would talk about the typical home buyers. Whether you are a first time home buyer or a repeater or an investor you would need home loan.

Home loans, also known as mortgages, use the borrower’s home for collateral. This home can be a single-family house up to a four-unit property, as well as a condominium or cooperative unit. Lenders fund home loans, but both the lenders themselves and brokers who act on behalf of the lenders originate, or process, them.

The top concern for a potential home buyer who would buy home within the next six months or next year is rising mortgage interest rate.

Mortgage lenders and mortgage brokers have sprung up around the world. This happened because today people are simply unable to buy a home without having a mortgage to do so. Without home loans, most Americans could not afford to buy a home.

Federal law promotes the consumer’s ability to shop for the best loan by requiring lenders to give prospective borrowers Good Faith Estimates and Truth In Lending (TIL) statements that disclose and itemize the terms and costs associated with a loan.The mortgage lender look for three main things: a steady income, a down payment, and a solid credit history.

A skilled and experienced mortgage professional can give you current information on the California real estate market and answer any questions you have.

You can also find California’s Consumer Home Mortgage Information from website http://www.yourhome.ca.gov/

Erik Gonzalez: Loan Originator, Loan City Home Loans

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