A strategy used by some who are working with a 1031 exchange project.  Pull out cash before the exchange making it tax-deferred at present.  This discusses why someone would want to sell their home immediately after the cash-out refinance.

Please listen to our other podcasts and visit our website at LoganAndersonLLC.com and read some of our podcasts on similar subjects.  

Logan&Anderson, Gulf Coastal Realtors markets properties on the Mississippi Gulf Coast.  Please contact us if you are interested in buying or selling an investment or residential property.      

Applying for a home loan? That debt-to-income ratio is confusing for someone with a good credit rating. You think with a 720 credit score you are automatically qualified for a loan. If your debt to income ratio is out of balance, you will not qualify. This blog will show you how to improve your debt-to-income ratio now. 

The type of loan you obtain, conventional loans, or government loans, all use the ratios as an important factor in making their determination.

What is the debt to income ratio? Take all of your debt from car payments to your expected mortgage payments. Everything that shows on the credit reports. At the same time add up all provable income e.g. pay stub, interest income, investment income, and all sources. 

With those two totals, you can calculate your debt-to-income ratio. If your gross monthly income is, for example, $5,000 before anything is taken out of your income (taxes, etc.), and your monthly debt obligations are $2,000. Divide your debt into your income. Your debt to income ratio in this example is 40%. 

What is a good debt-to-income ratio?

The recommended threshold is between 40% and 50%. In the example above, the person with a good credit score would qualify for a loan. The $2,000 above included forecasted interest, principal, taxes, insurance, HOA, and PMI/MIP. Let's break down the $2,000.

Your total debt for credit cards and other payments that appear on your credit report amount to $400 per month. The remainder of $1,600 covers the items listed above, your housing expense. $1,600 is what you have to spend on your new home each month to cover those obligations.

Now you know how much house you can afford

Assuming that the amount of house you can afford is lower than your expectations, there are some things you can do to fix the ratio issue. Let's tackle each of them and then you can reenter the data and see how things have changed. The idea here is to allow you to buy a house with a higher selling price.

Monthly payments include anything that shows on the credit reports including monthly debts, personal loans, child support, and any other financial obligations. Try to lower these amounts. Can you pay off any of your current debt? 

It's all about reducing your monthly expenses and the total amount of debt you have. Try to get your monthly bills reduced. Pay off anything you can which will put you in a better position to lower your debt. Lower your credit utilization rate which is done by paying down cards to lower than 10% of available credit.

Actions you take now can affect your ability to buy what you want

Don't wait until the day you decided to apply for a mortgage before taking the steps outlined here. This is a long process. We recommend you start at least one year from the date you want to apply for a mortgage loan. Keep at it. Your focus on all of the elements above is required to ensure the best outcome.

Please contact us if you need more information about any aspect of buying a home (or selling). We can make referrals to lenders that use these formulas. Contact us at [email protected] or call at 228-215-3234 or LoganAndersonllc.com

You are thinking of making a change that is why you clicked on this blog article. Let's get down to it. Do you want to save big on your dream house, near or close to the beach? You have come to the right place both geographically and electronically.

Logan-Anderson, Gulf Coastal Realtors is located in Gulfport, MS dead center on the Mississippi Gulf Coast. We love to help anyone buying or selling a home. Our specialty is working with people who are escaping high-cost states. Life can be a beach on the Mississippi Gulf Coast.

To make this as brief as possible, please listen to our podcast below and stick around on our website. Click here to hit the home page and start searching for your dream home. We suggest that you enter your email address and name to sign in. This will allow you to save your searches.

Health benefits of living on the coast

Lots of people move to Florida, Texas, and other places. They are all looking for beach life. The best thing about the Mississippi Gulf Coast is that it is not crowded. We have largely avoided the crush of people leaving high-cost states. Our ocean waves may not be as high as in other places but the water is warm. 

Our well water is naturally soft.  This means your skin will not wither as it does in some other states in the West.  Medical care is offered at a reasonable price compared to high-cost states.

Frankly, your state of mind will improve.  I simply can't recall any riots at the Mardi Gras parades.  If you call throwing beads out, well then perhaps.  

If you want to live by the beach

Yes, there are homes on the beach for sale. What we mean by on the beach is generally that houses are built on the Northside of U.S. 90, Beach Blvd. The great thing about our beaches is that building is largely prohibited on the sand. 

This means an unobstructed ocean view if you own a home on the highway. There are lots to build on if you want a custom home. An example, you can build as of this writing a custom home for under $425,000 within 250' of the beach. You may not have a view but you can walk there in a few minutes. Stand on the beautiful beach and admire the sunset. This is real life.

Want to live on a Bayou?

We can find a home on a bay, river, or bayou for you. These peaceful locations often have docks. If you don't have a boat, get one and join a community of boaters. These homes vary in price but are still a tremendous discount over similar properties in California, Illinois, New York, etc. The entire coastal area is beautiful.

Retired, former military?

Do we have a deal for you? Two military bases are located here. Commissary and exchange privileges are extended to retired and active military. We love veterans. There is a VA hospital and loads of benefits for vets, retired vets, and active duty.

If you are retired and over age 65, you get a big discount on property taxes. And the benefits for retired people do not end there. Try paying less at many restaurants. 

Our restaurants are worth a visit

if you want to have a good time visit one of our restaurants located on the beach or bayou. Order crawfish or fresh shrimp. If this is your first time here, try a crawfish boil. Our crabs and shrimp in lots of dishes are a beautiful thing.

Please contact us

You can call us at 228-215-3234 or email us at [email protected]. You can also leave us a message on our website by clicking here LoganAndersonllc.com

Do not hesitate. We can help you with financing, insurance, and home inspections using our resources. Consider moving here full-time or buying a vacation home. If you want to rent your vacation home when you are not here check out ChristiesGulfBeachRentals.com.

Before you apply for a mortgage loan, you need to read this article. We have included the 12 best tips to qualify for a mortgage loan now. Mortgage requirements are almost universal. Understand that the firm that provides the initial loan will probably sell it. 

Before the initial lender can sell your loan, it must meet specific requirements. At a minimum, you will learn 12 valuable tips to help you obtain a loan. These tips will help you facilitate getting the loan in the shortest possible time.

Your loan broker or banker will gather your information and submit it to an underwriter. This person will investigate what you have provided. Provide accurate information, don't guess.

Tip 1: Preparation

At least six months before applying for a loan pre-approval which is the first step in the process, obtain your credit report. You can obtain the report from various sources at no charge including once per year from the government website: Annual Credit Report

You need all three reports: Expedia, Transunion, and Equifax. Each bureau has its system for reporting. Review each item on the report. Check off any items that are not yours. 

If there is a bad debt or late item and they are accurate, those are there to stay. Focus on inaccurate things. My name is the same as my father's so we often had each other's items. 

If it's not yours, you will contact the bureau and tell them the story. List addresses on the report. Indicate what they mean. The purpose here is t determine that you do not own any of those properties.

Cleaning up your report

Now that you have created a list of addresses and names, get these issues fixed with the bureaus. Don't waste any time doing this. In most cases, the bureau will not remove your misspelled name or even the addresses.

Explain in your letter to the bureaus why the items are not yours or are correct. Do not contest things that are accurate even if you would like to see them gone. Contesting things will stay in the report for a while and you will have to explain them.

It would be good to obtain a copy of your FICO scores as well. You can obtain a copy of your FICO score for a fee by clicking here: 

You will not know which score your lender will use until you apply but knowing your score before you meet the broker will help. Your loan broker may be able to help you improve your score.

Tip 2: Pursue credit report corrections

You may need to send several letters, the process is not easy. Don't expect them to remove accurate items. The reason why this is listed as a tip separate from tip 1 is because of the time to send, receive, respond, resend, etc. Since COVID everything is slow. 

Retain your final answers, you may need to provide them or explain them in a letter. Create a letter to the lender and address wrong addresses and name misspellings. Address an address where you have never lived like this: "123 Main Street - My office address, never owned or lived there".

Women who were married and used other names will be required to submit proof of divorce. List this in your letter: "Married to Sam Jones, divorced on 1/1/20 at City of Smithville Court." If you retained your maiden name after the divorce it will be included in the documents and should be prepared to provide that.

Go to our website to see Tips 3-13

We are ready at Logan-Anderson, Gulf Coastal Realtors to help you find that perfect home. Use our website to search. Sign in so you can save your searches. Send us a note, call, or text when you are ready to talk about properties.

Logan-Anderson, Gulf Coastal Realtors sponsors Gulf Life Now.  This podcast informs the listeners who we are, what we do, and how we can serve you.  As Real Estate Agents on the Mississippi Gulf Coast, we strive to serve our clients with the latest technology such as this podcast.

This podcast explains our experience and what we offer to our clients.  Please listen and visit our website at LoganAndersonllc.com 

Everyone should have a professional support team on standby. Your team includes CPA, attorney, insurance broker, real estate agent, and others from whom you can obtain professional advice. Life happens and when it does, you should be prepared.

Perhaps you have a relationship with a family law attorney but have no relationship with an Insurance broker. Don't wait until you need someone for an important service before you seek out the best person for the job.

Everyone needs a family law attorney at some point in their lives. Family lawyers prepare wills and trusts which most people should have. If you get into trouble such as being involved in a traffic accident and are sued, this person can help you find an attorney who specializes in that type of law. Your family attorney can be a great source of information about many things and refer you to other attorneys.

Research your professional now

Why wait to assemble your professional team. Start asking friends and others for recommendations. Research your prospective choice. Interview that individual in person. If you believe that you click meaning you can get along and value their advice, sign up with them. An attorney may ask for a small retainer to legally list you as a client.

If you have been using a tax preparer and your tax situation has become more complicated with a trust, in; inheritance or even starting a business, time to move to a CPA. The CPA can help you with not only your tax return but a wide variety of financial advice as well. This person can help you plan for tax issues before they occur.

Your insurance broker is an important person as well. Every year you have insurance for your vehicles, house, RV, and perhaps health and life insurance. Get to know a broker with skills who can navigate the details and produce policies that meet your needs and are the most affordable.

Why include a real estate agent?

We as real estate agents can and do provide a great deal of assistance to our friends and clients. Being in this business is not just about selling houses and property. It's about providing a service to our community. The very best agents are focused on their clients and neighbors. Even when there is no money to be made, we are there to help.

Many people wait until they want to sell their home or buy a home before they contact an agent. Your agent should be in contact with you at least through a newsletter or outreach after the sale. This reoccurring contact opens the door for you to ask about the value of your house.

People need to know where they stand on their real estate investment (home) for a variety of reasons including estate planning. So many people decide to sell their homes without much notice. This happens due to many reasons, financial difficulty, death in the family, the job being relocated, etc. Why wait until you are desperate to sell before you call an agent. You already have an agent remember? Call your agent.

The concept here is simple. Assemble your team before you need them. What happens if your home is involved in a hurricane? Do you know who to call? You are arrested in a bar because the police thought you were part of a fight, you can call your attorney. Be prepared for those things that life throws at us. Even if you are young and do not think you have much to protect, you are wrong. Everyone needs a professional team.

If you have already assembled your team and have recently relocated, time to consider rebuilding it locally.

Logan-Anderson, Gulf Coastal Realtors would like to be your real estate agent member of your support team. Please reach out to us on this website or call us. Thank you for visiting our site and reading this and other blog articles. 

PODCAST BELOW

Many people come to the Mississippi Gulf Coast for the beaches and casinos. While these are great reasons to visit or move here, there is more. Today, I was invited to one of the many ranches located about 20 miles north of the beach. The experience was memorable.

While I was there, I watched a cow give birth to a calf. What a sight. I drove around with my friend on their side-by-side going from one pasture to another. It seems that almost every cow has a calf following mama around. This time of year Angus cows gives birth to a single calf.

The setting was beautiful. Tallgrass with stands of trees here and there. The property is a few thousand acres of grassland, forest, and lakes. The lakes are full of fish which provides food for the many birds and geese who frequent the area.
The photo above shows cattle including adults and calves. I was told that a cow will have their first calf at just two years old. Every year each cow can have one calf. This ranch sells the calves every year a few months after they are born. The calves go to a feedlot where they are raised to adults.

During my visit, I watched as two cows (steers are males) chase each other around. One cow had a large branch twisted up in its tail. That swinging tail with branch was enough to annoy another cow so they were in a pushing match.

The ranch raises longhorn cattle as well. The photo below shows how different these cows are from each other. Longhorns have to guess what? Longhorns. The owners don't raise the longhorns to sell, they are pets. Each has a name including the newborn calves. 

This ranch is one of many located in one of the three counties that form the Mississippi Gulf Coast. You can go from the beautiful beach and in a few minutes hanging out with cattle. The property that this ranch is located on was once a thick mostly pine forest. The trees were harvested for lumber and the stumps removed.

Ranches here tend to be small by Western standards. Most of the feed comes from the ranch. They allow the cows to feed on the lush grass during most of the year. They will close off some pastures and grow hay for the winter when the grass is dormant.

While this ranch does not have a "certified" organic certificate for the cattle they sell, the cows are raised as mentioned almost entirely from the grass here. Cattle are given minerals and other supplements to help keep them healthy. 

When you plan to visit the Mississippi Gulf Coast or even if you live here and did not know this beauty exists, just head north on any of the state's highways or rural roads. You will drive by some of the most beautiful scenery in the country. It's great to visit the beaches and enjoy the sun but when you are sunburned and need a break, take a drive.

Visit our blog site again. Listen to our podcasts that accompany some of our blog articles. You can listen to us as Gulf Life Now on any popular podcast platform or click below to listen to this companion podcast. 

Thanks for visiting Logan-Anderson, Gulf Coastal Realtors. Please sign in on our website to view properties and save them. 

Gulf Life Now is a service of Logan-Anderson, Gulf Coastal Realtors.  This podcast explores who we are and how we can be of service to you. 

As Real Estate Brokers located on the Mississippi Gulf Coast, Logan-Anderson, Gulf Coastal Realtors can help you find that retirement home.   When it's time to move up from that two-bedroom home to a three or four-bedroom house with a yard, we can help.

We are a small brokerage with decades of expertise in all aspects of real estate.  We use the latest marketing methods to create most of our blog articles.  Our original articles are timely and contain our personal experiences. 

Visit our website for more blog articles, podcast and to look at available houses on the Mississippi Gulf Coast.   LoganAndersonLLC.com 

You just received a notice from your mortgage company that your payment will increase by $300 per month. Why, what does this mean? Should I pay the shortage now or overtime? What is a shortage anyway? 

New buyers may just be receiving their first escrow analysis and don't understand how the mortgage company calculates their payment. Shortages in the escrow account can be handled in various ways, we provide some suggestions here.

This podcast explains what an escrow analysis is and how it works.  Please visit our website to learn more about this and similar topics.    LoganAndersonllc.com 

Compare a 1954 build 1,344 sq ft tract house in Garden Grove, CA to a 2022 built 1,992 sq ft house in Ocean Springs, MS. The Garden Grove house just sold for $920,000. The Ocean Springs house is available at $235,000 (est). Save 72% on housing, move to the Mississippi Gulf Coast Now while this property is available.

There are more things to compare than just price. How about the fact that the Ocean Springs house is new and larger by 648 square feet. These homes are built-in developments with similar-sized lots. Both homes have access to beaches, the Ocean Springs house is closer. 

Both homes are located near shopping and restaurants. Children attend class in person in Ocean Springs and have done so all but a few weeks at the start of COVID. 
The difference in house prices is so large that you could buy two houses in Ocean Springs with money left over for the price of the Garden Grove house. Many people in Orange County and other high-cost states have so much equity in their homes that they could come to Ocean Springs and pay cash for their new home and live on the remainder. 

I know, I lived in California where people consider all of that equity in their homes. If you sell your home you need to buy another and if it's in the same area, what's the point. Other homes will cost more. This is your chance to make a lifestyle change. Let's assume that you have at least $200,000 equity in your $950,000 valued home. 
Buy the home discussed above by putting down 20% of the cost, a total of $47,000. The total required to close including closing costs is about $53,000 (the seller may offer assistance). Remember you have $200,000 after selling your California home. That leaves $147,000 to invest for future income.

Monthly payment compared

Your principal and interest payment on a current balance of about $693,000 on your California home are about $2,921. Add insurance of about $125 per month and taxes (1.1% of value) $600 per month. The total payment is about $3,646.

The P&I for your new home is $898 per month, add taxes and insurance $490 per month and your total payment would be about $1,388 per month. A savings of $2,258 per month, and $27.096 per year. 

Don't forget the income (remainder after deducting buying costs from your $200,000 profit on your Garden Grove house) on your $147,000 @ 10% interest about $1.025 per month. Now add your house savings of $2,558 and your investment income of $1,225 for a total turnaround from your current situation of $3,783. Just a bit more than you are currently paying for your Garden Grove mortgage.
Inflation is taking a toll on everyone. Prices are rising for everything. House prices are not immune as building costs have increased. A brewing problem in California is that prices have gone up so much so fast that incomes have not been able to keep up. The day of adjustments is coming. 

I was living in Southern California during the last housing downturn. The reasons are different this time, no liar loans or sub-prime loans. Homeowners in high-cost areas are nearing a tipping point on pricing. Mississippi Gulf Coast pricing has gone up as well but not at the same rate as California. The area has a shortage of properties as does California. 

Should you consider a change, you should do so soon, very soon. Of course, the house you live in will be the same when it's worth 20% less but if you decide to move in a few years you will have less leverage.

Please visit the LoganAndersonllc.com website to read more about this topic.  Photos and links are available on our blog page with the same title.