Blog - real estate tips

How Do Mortgage Lenders Decide How Much You Can Borrow?

When you apply for a loan, your mortgage lender informs you of the maximum amount you can borrow, and this will help you get an idea of how much house you can afford. The question most buyers ask is how they reach this amount and what factors influence their decision?

Read on to understand the most common factors that lenders look at to know how much you can borrow.

1.) Gross Income

Most lenders prefer monthly mortgage payments don’t exceed 28% of your gross monthly income. At this percentage, they estimate a borrower will not stretch their budget too far and pay the loan without missing any payments.

Your gross monthly income is the amount you earn before deductions and other obligations, including social security, taxes, child support,…

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How Does a Home Improvement Loan Work?

Home renovations can be expensive, and saving up for extensive improvements could take years. Fortunately, you can fast-track your goals with a home improvement loan. 

Home improvement loans allow you to use the equity in your home to fund your home renovation. 

Benefits of a Home Renovation Project

1.) Increased Home Value

Prospective home buyers are willing to spend more if they see a kitchen or bathroom that has been updated or upgraded for convenience and functionality. 

2.) More Space

If your home feels cramped due to your growing family, extra bedrooms or living space can make living in your home comfortable once more. 

3.) Maintenance

Putting off home repairs can result in more considerable expenses down the road.…

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Refinancing Your Investment Property

If you own an investment property, you already know that getting a mortgage for this type of property is different than a refi of a primary home. If you recall, the qualifying requirements for getting an investment loan are more stringent than a primary home loan. 

Let's take a look at everything you need to know about refinancing an investment property.

Why Refinance Your Investment Property?

Owning a second property comes with costs, and some may feel that these additional costs tie up too much of their free cash flow. Others choose to refi to free up some money for repairs or improvements to the property. 

If this sounds like you, it could make sense to refinance into a better rate --possibly lowering your mortgage payment --and…

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What Your Buyers Agent Can Do for You

If you’re a first-time home buyer here in Middle Tennessee, you probably know this is one of the biggest purchases you’ve made. Additionally, each stage of the process is quite complex and can leave buyers feeling stressed and overwhelmed. 

In order to make your financing, shopping, bidding, escrow, and closing easier, Parks Realty recommends joining forces with one of our Accredited Buyer’s Representatives, or ABRs. What follows is a brief, partial overview of what your buyer’s agent will do for you.

Financing

Your ABR will assist you with analyzing your finances and determining how much you can safely spend on your home. Next, your ABR will help you choose from among trusted sources for your mortgage loans. 

Once you have an idea of…

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The Importance of Home Equity in Building Wealth

Purchasing real estate is one of the most reliable paths toward building personal wealth, especially in Middle Tennessee, where home values are consistently increasing. However, the amount of your home’s value that should be included in your assessment of your net worth is called equity, and it is our topic today. Whether you’re shopping for your first property, wondering whether equity can help you improve your current home, or are curious whether paying off more of your home loan now is the fastest way to beef up your wealth, we’re here to help. 

Q: What is equity, and how is calculated?

A: Simply put, equity is the dollar amount assigned to the percentage of your home that you independently own.

For simplicity’s sake, let’s use…

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What Does a Title Company Do?

A title company's role is to verify that the current owner can legally transfer ownership to the home buyer – essentially, making sure the seller has the right to sell the property.

In this blog, we'll go over how a title company determines legal ownership and the process of transferring the title.

The Title vs. The Deed: Understanding the Difference

Although they may sound like the same document, a deed and title are very different. A deed is a legal document used to transfer the property from the current owner to the new owner. It's signed on the day of closing.

On the other hand, the title is a document stating who owns the property and whether there are any roadblocks to transferring the deed. When you're buying a new property, it's…

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How to Spot a Walkable Neighborhood

In many regions of Tennessee, residents definitely need a vehicle to get around. Sprawling cities, patchy sidewalks, limited public transportation, and a lack of proper pedestrian infrastructures can make walking a challenge and a potential safety hazard. However, given the personal and environmental benefits of walking daily, it’s well worth it to dedicate some extra time when house hunting to find a home in a walkable neighborhood.

Why walk when you can drive?

Walking often reduces body weight, elevates the mood, improves balance, strengthens muscles, improves bone density, and develops coordination over time. Walking can fend off heart disease, reduce high blood pressure, and improve our body’s response to insulin, which, along with lowered…

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Home Inspection 101: A Homebuyer’s Guide

A home inspection alerts you to any immediate repair concerns plus gives you an idea of what it may cost to maintain the home in good condition. 

Let's take a closer look at the home inspection process so you know what to expect, and what the inspection does and does not include. 

What to Expect During A Home Inspection

Before finalizing your offer to purchase a property, your real estate agent can arrange for a home inspection. The home inspector’s job is to look for any potential problems with the home and document their findings in a report. 

A home inspection isn't the same as an appraisal. 

An appraisal estimates your property's value, whereas a home inspection looks for problems in the home. Another difference is that lenders…

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Secrets to Winning A Bidding War

While the housing market remains vibrant for buying and selling, the supply continues to be an issue in these past years.

Low supply happens when there's an abundance of buyers but not enough houses for all of them. Many call it a "seller's market," which often results in a bidding war as multiple buyers compete for the same property. Here is how you can still get your dream home despite high competition. 

The Anatomy of a Bidding War

A bidding war in real estate happens when two or more parties compete for the seller's acceptance of their offer. This stressful situation can be intensified if the owner or listing agent knows there's a lot of interest and propose that everyone submit another higher and better offer.

Thus, you have now…

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First-Time Buyers Must Avoid These Mistakes

There are many common mistakes first-time homebuyers make. Some are minor, while others can end up being costly. Fortunately, several of these mistakes are avoidable! Please read and share this article with other first-time homebuyers to help them spot these common errors before making them.

Mistake #1: Looking For A Home Before Getting Pre-Approved

When you shop for a home before approval, you run the risk of falling in love with a home that's out of your price range --ruining the whole home buying experience before you start.

Instead, focus on the finances first. Make sure you have enough saved for a down payment and the closing costs and get your pre-approval before you start home shopping.

Mistake #2: Buying More Than You Can…

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