What Having Your Financing Strategy Locked and Loaded Includes!

When you are "pre-approved" by a lender we get excited and think it's go time, right? 

Wrong! There are some details that one must know in addition to being preapproved, prior to requesting to go out and tour homes. 

One of the mantras I share with buyers is just because the bank pre-approves you for an amount, doesn't mean you should spend the entire maximum amount.  You have to spend your comfort zone amount. 

How would one determine their comfort zone? you may ask...

Focus your attention on the monthly mortgage payment... which includes the P.I.T.I. M.I. (Pity Me) That's Principal, Interest, Taxes, Insurance, and Mortgage Insurance.

The Break Down:

Principal - the direct loan amount

Interest - the amount the bank is charging you to loan you the money

Taxes - your annual property taxes amount (divided by 12...for each month)

Insurance - your monthly home owner's insurance amount

Mortgage Insurance - Insurance that protects the bank in the event you default (stop making payments) 

This is one of the reasons why I like to see a mortgage estimate broken down in addition to your pre-approval letter.  A mortgage estimate breakdown is critical because it gives you 3 numbers that help you determine whether or not you can afford to buy a home.  

The 3 numbers include your down payment amount, and your Cash-to-close or closing costs amount, which is the amount you're required to bring to the table.  Finally, your monthly mortgage payment that includes your entire PITI MI.  

As buyers, beware as some software and lenders will give you your monthly mortgage payment that only includes the principal and interest.  Be sure to ask for clarity that the monthly payment amount that you are quoted includes the taxes, insurance, and mortgage insurance. 

So, once pre-approved, you want to let your lender know your maximum comfortable monthly payment amount.

Let's Talk POC (Paid Outside of Closing) or Out of Pocket Expenses: Out of pocket expenses are expenses that will require cash, check, money order, wire, or cashier's check (i.e. bank check) for items that will need to be paid before closing. Your out-of-pocket expenses include your earnest money deposit, home inspection(s) costs, appraisal*, and first year of homeowners insurance policy paid in full to start your escrow account with your lender. 

*Please note, that the appraisal cost is the only one of these that are listed in your loan estimate breakdown from your lender. The rest are costs that are in addition to your cash-to-close amount.

Once you know your maximum purchase price amount (in a specific area) now, it's okay to start touring homes.  

Why am I writing this blog? because I've seen too many buyers hear approved and are ready to run out of the door and don't know or understand the details of their numbers...i.e. if they can comfortably afford the homes that they want to see.  

Do your due diligence at the gate, so that we are not wasting time or gas seeing homes that you cannot comfortably afford. 

Overall takeaway: You should know, have, and/or have completed the following before touring homes:

• Your maximum comfort purchase price
• How much is your total monthly payment (including your entire PITI MI)
• How much is expected for your earnest money deposit
• What type of financing you will be using
• What grants and/or incentives for which you are qualified and will be using
• Completed one-on-one in order to qualify for your grants and/or incentives
• A ballpark figure of the cost for a home inspection
• What's the soonest your lender can close
• How much your appraisal will cost
• How much one year of home owner's insurance will cost

Join my FB Group for more good tips.  Sorry Realtors, I love you, but this group is NOT for Realtors.

Any questions? Call/Text me today! 443-845-1137

Tomeka Givens, Realtor®

ExecuHome Realty

443-845-1137

tomekagivensrealestate@gmail.om

What Lenders/Banks Consider When You Apply For A Mortgage

Ok, here's the thing, to banks, we as consumers are ALL risks. When applying for a mortgage, banks consider 4 things when deciding IF they are going to approve you for a loan and for HOW MUCH.

So, the better your credit/FICO, more stable income/employment, lower debt-to-income ratio, and the more savings/reserves you have, the LESS of a risk you are to the bank. As a result, you are rewarded with a lower interest rate. Your interest rate is directly proportional to your monthly mortgage payment...i.e. the lower your interest rate, the lower your monthly mortgage payment.

• Credit / FICO
• Income / Employment
• Debt-to-Income Ratio
• Savings / Reserves

Credit/FICO -Lenders typically want to see a 620+...if you are looking to get grants and incentives (if applicable) then you want to shoot for a 640+. Please note, there are loan products out there that will take a 580+, but please know that your interest rate will be significantly higher than the market interest rates~higher monthly payment.

Income/Employment -Lenders typically want to see CONSISTENCY in your income/employment...at least 2 years. If you just recently switched jobs, as long as the income is consistent, you should be ok. They don't typically like to see gaps in employment, if there is they will ask for an explanation. Also if you graduated college/certification program and have an award letter from an employer, I've been told by some lenders, that will suffice as well.

Debt-to-Income (DTI) Ratio: Debt to Income Ratio is the ratio of money coming in from income (earned income, child support, alimony, assets, etc.) vs money that going out in monthly bills and expenditures (utilities, etc) This is the portion in which Student Loan Debt can kill your dreams...another conversation for another day. Overall, you want to keep your DTI below 35%

Savings/Reserves: Savings can be your own savings, 401K/IRA, or any retirement, also a gift of funds from a relative. Essentially money that you would be using to pay your closing costs at closing. Please note if you are having someone provide a gift of funds please alert them to prepare to show bank statements showing the money is present.

Speaking with a lender and allowing them to pull your credit to look at your overall financial picture should be the first thing you do in the process of buying. They can give sound advice on the specifics of what you need to do to get to where you need to be in order to get approved or approved for a better interest rate.

Notice how I didn't say credit repair...stay away from them.

NObody should be giving you credit advice unless they are qualified to loan you the money to buy real estate.

Join my FB Group for more good tips.  Sorry Realtors, I love you, but this group is NOT for Realtors.

Any questions? Call/Text me today! 443-845-1137

Tomeka Givens, Realtor®

ExecuHome Realty

443-845-1137 mobile

tomekagivensrealestate@gmail.com

tomekagivensrealestate.com

Redeeming Your Ground Rent Just Got Easier

March 10, 2022

Breaking News!

Marylanders! The Maryland State Department of Assessments and Taxation announced yesterday a more simplified Ground Rent Redemption System for Maryland homeowners who are subject to ground rent.

The new process is designed to reduce the obstacles a homeowner must overcome, as well as the number of documents a homeowner must procure, for them to redeem their ground rent through SDAT.

“Thanks to Governor Hogan’s leadership, SDAT has been able to streamline the process to eliminate residential ground rents here in Maryland,” said SDAT Director Michael Higgs. “This new process will greatly benefit Maryland homeowners who wish to once and for all resolve uncertainty about the status of the ground rent attached to their home's deed.”

While Baltimore City homeowners will be the most affected by the new ground rent redemption process, Anne Arundel, Baltimore, Carroll, Harford, Howard, Montgomery, Prince George's, and Worcester Counties also have registered ground rents in their jurisdictions.

Every homeowner that has ground rent is able to redeem ground rent through SDAT regardless of whether the homeowner knows to who they should be paying their ground rent. More information can be found on SDAT's Ground Rent Website

The Department of Housing and Community Development (DHCD) operates the Maryland Homeowner Assistance Fund which can help with past-due mortgage payments and other housing costs, including delinquent ground rent, for homeowners who have experienced financial hardship after January 21, 2020. For more information, visit https://dhcd.maryland.gov/Residents/Pages/HomeownerAssistanceFund.aspx

The simplified system can be found on the link below:

https://dat.maryland.gov/realproperty/pages/ground-rent.aspx

Join my FB Group for more good tips.  Sorry Realtors, I love you, but this group is NOT for Realtors.

Any questions? Call/Text me today! 443-845-1137

Please contact me with further questions.
Tomeka Givens, Realtor®
ExecuHome Realty
443-845-1137 mobile
tomekagivensrealestate@gmail.com

tomekagivensrealestate.com

RIGHTFULLY listing your home for TOP DOLLAR!

Getting Top Dollar for your home...

Pre-Listing Inspection. Let's talk about it because I'm seeing an influx of homes listed on the market and the seller has not properly maintained the home (i.e. it needs quite a bit of work).

It happens.

The issue is, that these are the same properties that are listed for top dollar but are in marginal, if not a defective condition.

The key to avoiding this is to get a pre-listing inspection.  If your budget allows, address (repair and replace) the items that prove to be defective maybe even the marginal items if you're feeling cheerful about fixing items. This should guarantee a cleaner outcome on your buyer's home inspection. 

Receipts for repairs and paperwork of transferrable warranties are always impressive to buyers. It shows them that you did your due diligence in preparing the home for transfer (to them).

A cleaner home inspection report shows the buyer that you've properly taken care of your home (whether over the years or just to list) and typically prevents the buyer from getting cold feet and wanting to terminate the contract to buy your home after the inspection.  

Depending on the severity of repairs needed they can prove to be expensive. 

Making certain repairs can pay off as the condition of your property can determine which buyers are eligible to purchase your home. 

That's right if your property is a major fixer-upper it can affect your ability to sell your home for the highest and best price. Why? Because it can disqualify buyers who have certain financing, which decreases your buyer pool, who would otherwise make offers on a home. 

It also makes your home more attractive to investors who have ZERO interest in offering the highest and best price. 

It pays to be proactive and stay on top of the scheduled maintenance of your home.  Not doing so can prove to be detrimental to your ability to get top dollar.  

Remember, the only surprises we want are on birthdays.😉

If you are still not convinced that you should make repairs on your home, or not in the financial picture to do so, then disclose the issues that exist (rather than disclaim) and price the home accordingly.

Yeah yeah, I know it's a super seller's market, however, if you are selling, then chances are you are buying. Rhetorical question: would you want to pay top dollar for a home in the same condition as yours? My guess is NO! Treat people the way you want to be treated. 

Make your home safe and fully functioning or disclose the issues with your home and price your home according to the condition. There is nothing slick about disclaiming when you know the issues going on with your home. It only delays the inevitable...the buyer not being comfortable moving forward, or presenting a novel for repairs (because they offered top dollar), or wanting a major price decrease. If you disagree with their request, they can opt to terminate the contract, and your home/listing go back on the market.

Be the seller from whom you'd want to buy a home!

Contact me today to book your listing appointment. I provide professional photos at no cost to you.

Join my FB Group for more good tips.  Sorry Realtors, I love you, but this group is NOT for Realtors.

Any questions? Call/Text me today! 443-845-1137

Tomeka Givens, Realtor®

ExecuHome Realty

443-845-1137

tomekagivensrealestate@gmail.com

Sign up here for a free home valuation report!

tomekagivensrealestate.com

The Experience of an Experienced Realtor

Realtor: "If you sign these documents, you get the keys to your home."

My mom: (((deep nervous sigh))) Okay.

Realtor: "Sign here...here...sign here...initial there...congratulations here are the keys to your home.

My mom: Oh, oh my God! (((look of shock))) That's it.

Realtor: Yes that's it.

My mom: Oh okay.

And BOOM! Just like that, my mom was a home owner.  She was more shocked than excited or happy.  I was only 17 had absolutely no clue as to what had just taken place as it was my first encounter with real estate.

One mantra that my mom taught me is that you don't sign anything not knowing what you're signing and here she was at the instruction of this real estate agent doing the very same thing she taught me to never do.

When I think back now being a Realtor, I now know why she was more nervous than excited.  I now understand why this process was so scary...to the point where she loss nearly 25 lbs during her home buying process from stress and nerves.  And why her reaction when handed the keys was more of shock than excitement. Simply put, she had a horrible agent. In fact, I believe the agent may have been the list agent.  See my mom had just purchased a bank-owned property using a fixer upper loan. Her rights and obligations were not explained, she was not given a synopsis of the process nor had she taken a home buyer workshop.  The realty is my mom didn't know what she didn't know.

This is unfortunately the case of many home owners. In fact, this was the case for just about every home owner I'd known growing up as a little girl. 

Remembering my mom's home buying process and hearing horror stories from home owners sent me into a tailspin while taking my pre-licensing class.  Hearing even more horror stories and experiences from my class instructor sealed the deal for me.  I was going to learn the process and put an end to the horror stories in the real estate game.

Of course my mom, my aunt and a host of other family members and friends who shared similar experiences had an impact on me and my view on the home buying process and home ownership.

Full disclosure, although I was college educated, I had no idea of the home buying process and was in no rush to purchase a home.  I didn't know it was possible for me.  I thought I had to wait a certain age to do so. Crazy, right?

The birth of my son was my motivation to think about obtaining assets such as home ownership and other investments alike.  Like my mom and others from my community, I didn't know what I didn't know.  I literally thought I had to have a 1,000+ credit (FICO) score and 1 million dollars in the bank in order to qualify to buy a home.

The first time I applied for a mortgage, unbeknownst to me, I was highly qualified...and had been for years.  Due to lack of education and good listening skills from my mom, who told me to never spend over half of my credit card(s) limit, I acquired bad credit during college and thought I would have bad credit for ever. Therefore, I buried my head in the sand and just assumed I had bad credit and simply learned to live with it.  That was, until I started reading books about investing, saving and spending money wisely.  Even having a career as a Chemist, making "good" money, paying bills on time, depositing a minimum of $100/week into my savings and paying my new credit card balance off every month for roughly 8 years, I still thought I had the same bad credit from college.

Fast forward from then to now, knowing what I know as a licensed Maryland Realtor, I can't help but to imagine there are many others who may have a similar thought process about buying a home. Whether its the importance of credit, knowing that home ownership is an option, to knowing the difference between a Realtor and a Real Estate Agent, to understanding why they should hire a Realtor, to understanding that the seller will typically pay their Realtor (not them).

I've since volunteered my time partnering with various housing agencies teaching home buyer workshops. I'm also currently serving as Vice Chair of Greater Baltimore Board of Realtors (GBBR) Equal Opportunity Committee where our goal is to educate the consumer about their rights and obligations throughout the home buying process.

If you've been curious about home ownership or would like to have a conversation about buying a home, you may call me at 443-845-1137 or e-mail me at tomekagivensrealestate@gmail.com

Tomeka Givens, Realtor®

(443) 845-1137 direct

Past client reviews

Like me on Facebook

Follow me on Instagram

Read my real estate blog series Tomeka's Two Cents 

Real estate blurbs

*Wire Fraud is Real*.  Before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions. Additionally, please note that the sender does not have authority to bind a party to a real estate contract via written or verbal communication.

I wanna buy a home Part 5: Settlement...what's needed?

The lender has issued a clear-to-close notice to me and the title company will confirm the bank is ready to complete your purchase. 

Your final walk through is now complete.

The final CD (or closing disclosure) will confirm the correct amount of money you need to bring to settlement.

If you are planning on wiring funds, please send the money to the title company at least 24 hours prior to settlement. Wire instructions will be issued from the title company (typically by request via email). For security purposes, I recommend that you call the title company to confirm their account details prior to sending funds.

If you are paying via check, then please have your bank issue a certified check made payable to the title company.  A personal check will not be acceptable.

Be sure to bring photo ID to settlement.  The title/closing officer or settlement attorney will review all your title, tax and loan documents. There is a lot to review and sign so please allow roughly 2 hours to complete settlement.

Tomeka Givens, Realtor®.

Join my FB Group for more good tips.  Sorry Realtors, I love you, but this group is NOT for Realtors.

Any questions? Call/Text me today! 443-845-1137

If you have any further questions, then please contact me:

Tomeka Givens, Realtor®

(443) 845-1137 direct

Past client reviews

Like me on Facebook

Follow me on Instagram

Read my real estate blog series Tomeka's Two Cents 

Real estate blurbs

*Wire Fraud is Real*.  Before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions. Additionally, please note that the sender does not have authority to bind a party to a real estate contract via written or verbal communication.

I wanna buy a home Part 4: I'm now under contract, what's next?

The seller has agreed to your offer, signed it and you're now under contract.  What's your next step? 

STOP looking at other homes! You are legally bound to the terms of the contract you've just signed and cannot legally make offers on other homes. 

Home Inspection:

Your next step will be to schedule your home inspection ASAP! Be sure to synchronize your availability with mine when scheduling as I make it a point to be present at my clients' home inspections.  

Note: While I have preferred home inspectors, by law, you have the right to hire any home inspector you want.

The home inspection is important as you will get to know every nook and cranny of your home. I advise you to allot about 3 hours and to dress comfortably as I'm not the agent who will have a seat while the inspection is taking place. 

I'm all up in the mix, breathing down the back of the inspector's neck, and you will be right by my side. 

This is the time to ask any and all questions about the property, so don't be shy.  

The home inspector is there to give you their professional unbiased opinion about the home.  He's going to pick on some of the areas that need repairs or replacement (if applicable), but he's also going to point out the positives about the home. 

At the end of the inspection you will pay the inspector directly per your agreement (check, cash, etc.) and you should have your report if not immediately then within 24 - 48 hours.

Between completion of the inspection and review of your report you will then decide what you would like the seller to address (i.e. repair or replace) 

Sidebar:  Understand during this process that no home is perfect...not even new construction.

Having said that, you will then decide what issues are deal breakers for you and relay this information to me.  I will then list these items/issues on a Property Inspections Notice (PIN) and submit to the list agent for the seller's review. 

The seller will have up to 5 days to respond with 1 of 4 options to your PIN: 1. agree to fix everything, 2. agree to fix some things, 3. agree to offer a credit in lieu (instead of) fixing issues or 4. not agree fix anything. 

Understand! A seller is not obligated to fix anything you request, but you are also not obligated to move forward with purchasing their home. If you and the seller can't come to an agreement on repairs, then you can have the right to sign a release of the contract and funds walk away with your EMD and your search for your home continues. 

Disclaimer: the downside to this is you do not get back the funds spent on the inspection. 

In the event you and the seller reach an agreement with repairs, you then opt to move forward with purchasing the home.

Following this, you will give your lender the green light that you are moving forward with the purchase, then they will proceed with ordering the appraisal.

Sidebar: Most lenders may require you pay for the appraisal out of pocket.  This price can range from $400 and up depending on the type of property and the area. You are welcome to ask the lender the costs ahead of time to insure you have the funds to pay when needed.

In the meantime, you will become "best friends" with your lender's Loan Processor, Underwriter and your title company's Title Processor. I highly recommend that you fulfill their requests ASAP. Remember, the sooner you give them their requested documentation, the sooner you can close. 

Your lender will require that you purchase a homeowner’s insurance policy.  You should not leave this to the last minute as you may find it beneficial to obtain a quote from various companies for the best rates.  My two cents: start with your car insurance company and see if they will offer a bundle deal. 

Contact your cable & internet providers in advance about switching the address of service and be sure to give them your date of occupation.

Contact utility, alarm company a few days before closing to plan to switch service.

Your water bill will be transferred by the title company.  It sometimes takes some time for the city to figure out that the home has a new owner.  Understand, from your settlement date and forward, you are responsible for the usage, even if the bill is still in the previous owner's name. 

You are welcome to plan with a locksmith if you opt to change your locks (highly recommended)

Around 72 hours before your settlement date, you should receive your closing disclosure (CD) from your lender via e-mail. This document breaks down every red cent within the transaction...most importantly, the amount you are required to bring to settlement. Please understand that it is not uncommon for this amount to be off.  If this is the case, call me and your lender for clarity and corrections...but sign them anyways. *  You are required to acknowledge receipt of this document by signing it.  Time is of the essence and critical at this point.  If you don't sign the CD by 11:59pm this will delay your settlement. 

Example: if you're settlement is scheduled for a Friday and you receive your CD on Tuesday evening, you MUST sign acknowledging receipt by 11:59 that Tuesday night.  Anytime later will result in your settlement being delayed to the next business day, which in this case would be Monday. 

Walkthrough:

Just before settlement, we will schedule your final walk-through.  This typically takes place either the evening before or the day of settlement.  If repairs were done, a copy of the receipts should be delivered to me before the walk-through.

Join my FB Group for more good tips.  Sorry Realtors, I love you, but this group is NOT for Realtors.

Any questions? Call/Text me today! 443-845-1137

If you have any further questions, then please contact me:

Tomeka Givens, Realtor®

(443) 845-1137 direct

Past client reviews

Like me on Facebook

Follow me on Instagram

Read my real estate blog series Tomeka's Two Cents 

Real estate blurbs

*Wire Fraud is Real*.  Before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions. Additionally, please note that the sender does not have authority to bind a party to a real estate contract via written or verbal communication.