Examining A Home Objectively: What Matters And What Doesn’t

Everyone heads out to look at potential homes with a list of the things they want in a house, and a list of the things they definitely do not want.  In addition to that wish list, there are also some other things you will notice about the homes you visit that may strike you as potential problems.

When looking at homes, it is important to know what things are deal breakers and what things are minor issues that you can deal with easily.  Turning down a dream home because of something that is an easy fix seems like a silly thing to do, but it happens surprisingly frequently.

Cosmetic Issues

You walk into a home and it has terrible wallpaper or paint colors you wouldn’t dream of using, and it turns you off immediately.  While the gut reaction is normal, it is important to step back from that instinct and think about it objectively.  Painting is not particularly difficult or expensive, so try to imagine how the home would look with a different color palette, one that is more your style.

The ability to recognize which issues are merely cosmetic and can be easily fixed is an important key to finding a house you will love.  Be prepared to visualize the home as you could make it with a few cosmetic changes.  It will open you up to the possibilities and might allow you to consider homes that aren’t perfect the way they stand now, but could be just right with a little elbow grease and paint.

Major Repairs

In some cases the major repairs that a house needs might be obvious.  In other cases they might only be unearthed during a home inspection.  Either way, you will need to give serious consideration to whether or not you are willing to deal with the problem.

If the home needs expensive repairs, you can either try to get the seller to do the repairs or accept that you will need to do them yourself.  In most cases, the seller will probably not be willing to take on major repair work, but might reduce the price accordingly.  Still, this might be a deal breaker if you are seeking a turnkey home.

Knowing The Difference

A home inspection is the best way to uncover all of the issues, both minor and major, that a house might have.  When you review the inspection, look for things that can be easily fixed as well as those that can’t.  The amount of work you want to do on your home will determine what problems you can personally live with.

 

Halloween Safety Tips

On October 31 of every year, children around the nation enjoy carving jack-o-lanterns, dressing up in their favorite costumes and going out trick-or-treating for candy and treats.  Although the traditions of Halloween have been longstanding, it is important that both parents and children approach the occasion with a combination of diligence, forethought and safety in mind.

Costume Selection

When children choose a Halloween costume, they think more about the style and character than the actual safety aspect.  It’s important that any mask be designed in such a way that does not obstruct the child’s view while being worn.  In addition, a costume should be comfortable and not restrict movement or increase the risk of the child stumbling or falling.  Therefore, the costume’s length must also be considered.  Bright colors also are recommended so they can be easily seen.

Chaperone Requirements

In a perfect world, it would be safe for children to go out and enjoy Halloween by trick-or-treating in the nearby area or neighborhood.  However, this is not a perfect world and it’s important that an adult accompany children who are outdoors and/or trick-or-treating.  Ideally, there should be one adult for every 2-3 children.  This is especially important in large groups, where it may take more than one adult to supervise multiple children at once.

Must-Have Accessories

Because trick-or-treating typically occurs in the evening hours, it’s important to have a working flashlight on hand.  Add fresh batteries to ensure it will last through the night.  Adults should carry their cell phone in case of car trouble or to reach emergency contacts, if needed.

Rules Of The Road

When trick-or-treating, always remain in well-lit areas.  This includes areas with working street lights and homes that have a porch light turned on, which is a sign that the homeowner(s) welcomes trick-or-treaters.  If the house is dark and/or the porch light is off, avoid the home and continue on to the next one.

One of the greatest attractions of Halloween to a child is that of trick-or-treating and the prospect of receiving candy and other treats.  It’s important that both parents and children know which types of candy are safe and which are not.  Candy that is unwrapped or is not factory sealed should not be eaten.  Instead, it should be thrown away.  In addition, candy with expiration dates that have passed or anything that’s homemade should be discarded.  With this in mind, it is recommended that nothing is eaten until parents and children examine all of the “loot” once everyone gets home.

Observing Local Curfews

Trick-or-treating is typically designated at a certain time for every area.  This means that some towns may allow trick-or-treating on the night before or the night of Halloween.  Additionally, there are specific hours and age limits that must be observed by all who choose to trick-or-treat.  It’s important that both children and adults understand the local rules and adhere to them strictly.  If you are concerned about missing the curfew, wear a watch that lights up with the touch of a button.  This will allow you to easily see your watch face in the dark and will ensure that everyone gets home on time.

 

Show Me the Money: How Much Cash You’ll Need to Bring to the Closing Table.

Let’s start low and then build up. First of all, if you qualify for a VA loan, they allow a zero down payment. If you’re a veteran or an active duty service member, you need to know that. Also, if you’re buying a home in a rural area, ask your REALTOR about the Department of Agriculture program. Yep, the USDA has a zero down home loan program for people buying out in the country.

Now if neither of those programs work for you then you’ll have to come up with some cash when you buy a house. But, you do not need a 20% down payment. If you’re a qualified buyer you can find a good safe mortgage which requires as little as 3% down. And again, this is not some sub-prime back alley mortgage, this is a high quality home loan. So that’s a good starting point.

Now, how do you get the money? Well course people who sell one house and buy another, they just take the profit from the first place and buy the second one. But if you’re a first time home buyer you don’t have that ability. So for you there are basically four ways to get your down payment ready to go.

First, save it. Just sock away all the money you can and try to temporarily stop spending on things you don’t really need. Plenty of people have given up vacations or expensive dinners in order to conserve their down payment money. You can too. It helps by the way to have your money put in your savings account automatically – direct deposit. You never see it so you won’t be apt to dip into it.

Second, plenty of first time home buyers get the down payment from their parents. But it has to be a gift, not a loan. Lenders won’t allow you to barrow the down payment. Your parents will have to give you the money. It happens all the time all across America.

Third, if you have an IRA or a 401K you might be able to withdraw money for a down payment. Talk to your accountant about this one. You need try at least to avoid penalties for early withdraw. So talk to a financial pro about whether that’s a smart move for you or not.

The forth way to come up with a down payment, your city or state might have a program that provides down payment assistance. Again, talk to your REALTOR about what programs are in your area. You might qualify, you might not. Many people are surprised that they can be making a pretty good amount of money and still get down payment assistance.

On last thought. I talked a lot about how to get into a house with a low down payment. But if you can, you should know, it’s almost always better to put down more. Put down as much as you can. Your monthly payments will be less, you’ll walk into the place with more equity. And if prices were to drop, you’ll have more protection against going under water. So more is better. And if you just don’t have more, that’s okay. Remember, you do not need 20%. If all you have is 3%, 3.5%, or 5%, don’t give up. Because the home you want could be within your reach.

 

Things You Need When Applying For A Home Loan

Congratulations!  Now that you have found the perfect home, all that’s left is getting the perfect mortgage.  In order to do that, you will have to know what your lender needs from you in order to get your loan application approved.

Property Description

When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a down payment.

Borrower & Co-Borrower Information

All persons named on a home loan must be able to provide their name, date of birth, current address, former address (if within the last two years), marital status, current and former employment information, telephone number and social security number.

Most lenders require tax returns for the two years preceding the loan application, along with current paystubs or, if self-employed, a year-to-date profit/loss statement.

Current Mortgage Expenses

An important part of every home loan is affordability, which is why your lender will need to know how much of your income is available to pay for a new home.  If you have a current mortgage, be ready to provide a detailed list of expenses that you pay each month in relation to the property.  This includes a mortgage payment, real estate taxes, mortgage insurance, homeowner’s association dues, utilities, etc.  If you plan to sell the home, let your lender know so that they will understand you are simply replacing one debt with another.

Yes Or No

Almost every loan application asks both the borrower and co-borrower (if applicable) to answer a few simple yes and no questions on the application.  Questions pertaining to outstanding judgments, bankruptcy filings, foreclosures, lawsuits, alimony, child support and citizenship status are standard and should be expected when applying for a home loan.

Statement Of Assets & Liabilities

When applying for a home loan, both the borrower and co-borrower will be required to disclose all of their current assets and liabilities.  An asset is property, either real or personal, that is owned and is of value.  A liability, on the other hand, is a financial obligation for which one is liable.

A loan application will request information relating to assets and their current market value, including automobiles, real estate, stocks, bonds, life insurance (cash value), business net worth, personal property, etc.  If any amount of money is owed on these properties, the lender will request information relating to the unpaid balance in order to determine the actual equity that the borrower has in any given property.