Life tip #1   

Now, more than ever, we should all be embracing the things that make us happy. Have that second scoop of ice cream, sleep in a bit later, spend time with your loved ones, your pets, your kids or just have a day of self care . Happiness comes from within. Change what you have going on if it does not bring you joy. 

I can't tell you how many times I have talked with a new buyer from another city that wants to *move to the Blue Ridge Mountains* and live the dream in the woods. Then they get out there and realize it's too isolated for them or too far from a grocery store. Or they say they want to live in a city but now it has become too busy. It happens more often than you think. When looking for a home the best thing you can do is really visualize what you want your life to look like in a few years. City's will always become busier and busier with more people moving to an area.(It's the Urban Sprawl as I call it) When you're not from the area you really have to depend on your agent to help you with the navigation of all these things. Best bet is to drive around areas you think you may like then narrow it all down and hyper focus on that area. Don't give up on your dream of being a homeowner in the location you want to live. It will pay off in the end.

What Does Proof Of Funds (POF) Mean?

Proof of Funds is a document that demonstrates how much money a person or entity has available. When purchasing a home, you may need a POF to show the seller that you can cover the purchase costs of a home. Remember that purchase costs can include the down payment, escrow and closing cost.

What Funds Qualify?

There are several types of funds that qualify as POFs. In some transactions, simply having a bank statement from your bank or printed online can qualify. Additionally, a certified financial statement or copy of a money market account balance will qualify. Other times, you will need a letter from your bank or financial institution that states the exact amount of accessible or liquid funds that you have available.

It’s important to note that your funds must be liquid. This means that mutual funds, life insurance, another person’s bank account, shares and bonds or proof of other possessions do not qualify as POFs.

How Is A POF Letter Different From A Preapproval Letter?

A pre approval and a Proof of Funds letter are not the same. A preapproval letter is a document stating that a lender will provide a buyer with a loan, whereas a POF letter states that a buyer has funds available to pay for other costs associated with the purchase of a home. 

Preapproval Letter

A mortgage pre approval  letter is used to let sellers know that you will be able to afford the home. While someone may be preapproved for a loan, it does not mean that they get a loan right away.

The first step to getting approved for a mortgage is to get prequalified for a loan. This means that a lender has given an estimate for how much a buyer could be approved for based on their credit score. This number is a gross estimate.

Then, the buyer gets pre approved. They provide more information, such as a bank statement and pay stubs, and the lender will do a hard credit check to investigate the buyer’s debt and credit scenario. For example, after you apply to Rocket Mortgage®, an underwriter will take a closer look at your assets and financial documentation to determine what you will qualify for.  

POF Letter

Sellers will ask for POF in addition to a preapproval or prequalification when they want to see evidence that a buyer can cover the closing costs and down payment. They may also require a POF even if a bank or lender does not require it to approve you for a mortgage, so keep in mind that it’s a good idea to have a POF no matter what.

What Other Documents Qualify As POF?

Several documents qualify as POF. Proof of Funds usually comes in the form of a bank, security or custody statement, and can be procured from your bank or financial institution that holds your money. Bank statements are the most common document to use as POF and can typically be found online or at a bank branch.

To Stage or NOT to Stage ...that is the question.

When you are getting ready to sell your home you want to make it as appealing as possible to a buyer. There is a fairly short list of things you can do to help maximize your earning capability.

Get rid of ALL the clutter, nick knacks, and personal photos. It's always good to get a storage unit and start putting things away to move. It's also makes the process of moving a little easier since you have a head start. Clear out any extra furniture that may be around. Make it inviting and comfortable for the new owners.  People like to imagine themselves in the home with there own personal touches. Think MINIMAL.

If your home is already empty, staging it is a great idea as well. It does not have to be a house full of furniture but if people can see the space of what may or can fit (especially  if it is a small space ) they are more likely to see their own things in the space. 

You may also want to take some time and do a little landscaping. If the front of the home looks inviting it will make people want to see what has been done on the inside. Take some pride in your home before you decide to put it on the market. It will pay off in the end.

Being a first time home buyer can be overwhelming to say the least. Buyers who are willing to approach the process from a practical rather than an emotional standpoint can avoid common mistakes. The interior of a home may be important BUT so is having a mortgage payment that is not too much of a stretch or commute to work. When considering how much of a home you can afford, ask yourself these questions.

Can you afford this home and monthly payment?

Does it fit your current  lifestyle?

What will your future self want?

Has the property been maintained?

Do you have an exit strategy?

The bottom line is homeownership can be empowering but also a daunting process. Choose a home within you means. Something you love and  can afford.

That makes this improvement a must! The kitchen is the heart of the home, so make it one you love! What does your dream kitchen have in it?