Nick Alvaro Residential & Commercial Properties

Welcome

Wednesday, 21 July 2010 00:00 Nick Alvaro

Buying your first home, moving from your life long home to across the country, or downsizing to manage your life rather than a large home managing you later in life are all dramatic steps in our lives. Let me help you find the home that best fits your life style. My varied life training as a residential/small commercial contractor, communications specialist, and Realtor can help you avoid common mistakes that allow emotions to overrule good decision making when you select your home. Don't let the biggest investment in your life become your biggest nightmare, working together, I can help you find the best deal for your money. I represent you, whether you are the seller or the buyer and negotiate the best deal possible. Laws and construction methods change every day, state and local codes change weekly, if you are not familiar with these changes, it can cost you later. If you want an easy transaction, I can provide guidance for you or handle the financing, inspection, and appraisal process - no charge - it's all part of doing business with me. Once you and the home have qualified for the purchase, you just show up for the closing, sign the required documents, and move in. Life is too short to sweat the big stuff, let me do it for you.

Last Updated on Tuesday, 20 July 2010 22:07

Getting the Loan

Sunday, 18 April 2010 00:00 Nick Alvaro

Different lenders have different requirements when you apply for a mortgage, but they all boil down to one theme: The lender wants to take a close look at your finances to make sure you can and will repay the loan.

The Internet makes this process faster and simpler than ever before, because your lenders can more easily check your financial information. Each lender has different needs when it comes to documentation. Typical requirements include your Social Security number; past tax returns and documentation; employment and credit information; a list of any bank, investment or other financial accounts; credit references, including past lenders and landlords; a list of any credit cards or loans in your name; and your permission to verify the information with lenders, creditors and other third parties. If you're married, the lender also will need the same information for your spouse.

If you haven't already checked your credit report, do it before you apply for pre-approval. If there are problems in your financial or credit history, you need to know about them before you start approaching lenders. And, if there are errors in your report, you can start the process of correcting them and mention them to your lender when you apply.

Last Updated on Sunday, 18 April 2010 04:07 Read more...

How Much House Can You Afford

Wednesday, 21 July 2010 00:00 Nick Alvaro

The first consideration in buying a home is comparing your dreams with reality. Put simply, how much house can you afford? Determining a ballpark figure for what you can afford is an important first step in finding your new home - it saves you time by ruling out homes that are out of reach, or too modest.

Down Payment

It's a simple fact: The bigger your down payment, the less you need to borrow to buy your home. Take a look at your assets - savings, stocks, bonds, the equity in your current home - and see what kind of down payment you can make. Remember, lenders prefer to have buyers put down at least 20 percent of the purchase price; if your down payment is less than that, your lender may require you to purchase mortgage insurance.

Monthly Payments

Once you decide on your down payment, it's time to figure out how much you can afford to borrow. The best way to do that is to look at your monthly income to determine what mortgage payment you can afford.

Lenders look at your total debt when figuring out how much you can afford to borrow. After all, if you are carrying a large credit card debt, it's going to be harder to pay your mortgage at the same time. For example, many lenders think your total debt payments including mortgage shouldn't be more than 36 percent of your income. The formula is a lot like that for mortgage ratios:

Basic Calculations

Monthly Gross Income x .36 = Maximum Debt Payments
Below is the calculation for our $4,000-a-month household with a monthly debt of $400:
$4,000 x .36 = $1,440 - $400 = $1040 Maximum Mortgage Payment

Two important things to keep in mind when working with these ballpark figures:

Your maximum monthly payment includes property taxes and homeowner's insurance, not just your mortgage. You also may need to purchase mortgage insurance if you are making a down payment of less than 20 percent of the home's price.
The ratios may not fit your family. If you are saving for kids' college expenses or a new car, for example, you'll probably want to be more modest about how much you borrow.

If you need help calculating your maximum monthly payment, please contact me anytime.