You know when you buy a home that your credit score matters, but do you see all of the numbers that matter to your financial picture when you’re buying a home? Your debt-to-income ratio is one of the most critical figures that will influence if you can get a mortgage and what type of rate you can get.
This number is exactly what it states: the ratio of debt divided by your gross monthly income. Your credit report doesn't include any of this income information. This number is actually the best way to see if you’re living within your means or not. This way, your lender will know your monthly debt payments along with your monthly income.
If your ratio of debt is high, you may not get a loan or get less desirable interest rates than if you had lower amounts of debt. Even if you have a high credit score, your debt-to-income ratio could affect these things. In reality, a higher debt ratio will make it harder for you to pay back your debt, so it’s important to you.
You can use an online tool to help you calculate your debt-to-income ratio. You can also use a simple formula if you’re up for doing some math yourself:
Divide your monthly debt payments by your monthly gross income then multiply that number by 100. For example:
Student loans: $400
Car loan: $300
Rent: $700
Income: $4,000
1400/4000= 0.35 x 100= 35%
You should also be aware of something called your household ratio. The household is the amount of home-related expenses which includes property taxes, prospective mortgage, home insurance, and more. These costs are divided by your monthly income to get this ratio as well. Obviously, your household debt adds to your financial commitments and is also put into consideration by your lender.
It’s ideal that you keep your ratio less than 36%. Your household ratio should be even lower than this. It’s great to be debt free, but in the real world, that’s not always possible. Your best bet is to be responsible with your finances and work on paying your debt down as much as you can. Then, little by little all of the critical numbers that are required to get a mortgage will fall into place.
When you have a small yard, you may feel like there’s not much you can do with your landscaping scheme. The good news is that there is plenty that you can do to perk up your yard and give it some character. Read on for tips for your small yard.
First, you should create a focal point in your yard. You want a place that your eyes are drawn to each time you enter your yard. This focal point could be a fountain, a pergola, a tree, or even some outdoor artwork.
Even though your backyard might be small, having a spot for intimate conversation and entertaining can be a nice touch to your yard. When there is a space that exists for reading, relaxing, eating, or whatever you like to do outside, it becomes more inviting. This is landscaping with a purpose.
Make bold colors pop in your yard. Attention will be detracted from the size of your yard and the focus will switch to the beautiful blends and colors that are in the space. Placing bright colors strategically will even make your yard appear larger.
By creating a focal point and allowing your yard to form in long, clean lines, the perspective of the outdoor space will change from small to just right. One trick is to use fences to define your yard. If you have a garden, you can use a small fence to define this area. Define the boundaries of your backyard with a fence as well. Repeating rows of flowers or bushes is another way to create those straight, defining lines.
When space is limited, just as you would in the inside of your house, don’t be afraid to go up! You can plant things that grow on a vine and can be tamed with a trellis or pergola. This creates and elegant effect in your home.
If your yard is small enough that you may not even have much grass, don’t fret. Any kind of greenery can help you to enjoy nature. Whether you live in a rural area or a large cityscape, there’s always room for plant life and green natural accents.
If you have an admiration for sitting by the fire, you certainly should install a fire pit. If you want a fountain, you should install it. No matter what the size of your yard, it’s a place that you love and should serve you and your needs. No yard is too small for enjoyment. The key is that your outdoor space allows you to bask in the glory of your own little piece of natural heaven.
When it’s time to buy a new home, you’ll hear a lot about the importance of location. How can you choose a place? Whether you’re moving around the corner or across the country, there are a few essential things that you should know in order to select the best place for you to live. Read on for some questions that you should ask yourself when trying to find a good fit for a location to live.
What Should Be Close?
There’s more to a home than what schools are nearby or how close you are to work. While these things are essential, you’ll need to understand more about our lifestyle to find an excellent location. You’ll have to look at your life and your family’s life on a day-to-day and weekly basis. What types of activities do you enjoy? How close do you want to be to a grocery store, a gym, or a shopping center? How close do you want to live to the city? The mountains? The beach? Does your family enjoy outdoor recreation like hiking or walking through the park? Making sure that the things that are important to you and your family are accessible will be a big part of choosing a location to move.
How Walkable Is The Neighborhood?
If your kids will be walking t school, or you enjoy daily strolls with the family dog, the walkability of a neighborhood is important. Many places allow you to walk everywhere right out your front door to the grocery store or the hair salon without ever setting foot in a car. You may even want to be able to walk to a bus or subway in order to get to work each day. Walkability is an important aspect to consider when looking at home locations.
Who Lives Nearby?
You may want to consider who lives nearby when looking at different neighborhoods to move. If you wish to live near family or know some good friends who live close, this could be a good starting point for finding the right location to live. It’s always easier to make the transition to a new area when you know a few people.
How Quiet Is Too Quiet?
Some people love peace and quiet. Other people need a lively environment that allows them to access the hustle and bustle any time they choose. Knowing your want for peace is a big lifestyle choice and a large part of selecting a location to live in. The closer you move to a big city, the easier your access to the more exciting side of life will be. The further away you live from the city, the more likely you are to have more quiet.
