Top 5 Spring Maintenance Tips

Spring has arrived!

And that means it’s time for sprucing up the old house. According to Trulia, summer is the hottest season for real estate so if you’re thinking of listing soon, spring is your last chance to make last minute home improvements. If you missed out on winter to do your home repairs, here are a few home maintenance items to tackle as spring puts the spring back in your step.

Check those gutters. The weight of snow, falling branches, and simply cold temperatures can wreak havoc with your home’s gutters. Grab a ladder (and a buddy) and give your gutters the once-over. Check for blockages caused by debris and leaves, make sure seams are firmly held together, and clear the drainage ways as you prep for spring rains. Click this article for additional key maintenance points for any homeowner looking to clean out their gutters.

Clear that chimney. Do you have a home with a chimney? If you live in the Midwest and Midwest, it’s highly likely you do. While the singing chimney sweep from Mary Poppins might not be what you’re looking for, every home needs one this time of year. Have a professional come out and inspect your chimney, especially following all of the use you’ve given it this past winter. They’ll check the mortar, flue, and ensure you’re good to go before the rains make you wish you’d called sooner. If you’re not quite done with use this winter, check out these tips for eco-friendly chimney use.

Inspect outside water connections. Sometimes those hoses don’t make it inside during the winter. Now’s a good time to check your hoses for rips, tears, and breaks, as well as check the spigots coming out of the house for any cold-related damage. This article will take you through de-winterizing your home, complete with visuals. Remember – thawing still-frozen pipes is a delicate process and to avoid damage, pipes are best thawed slowly. We’d all like Mother Nature to step it up a bit, but this is one place where slow and steady wins the race (and saves your wallet).

Tune-up your cooling system. Before the heat of late spring and summer set in, have a professional come give both your central and window air conditioning units a look-see. While you’re waiting for them to arrive to make sure the winter didn’t do a number on your system, go ahead and replace your air filters. And if you’re in a home where there’s no central cooling, check out this new window AC unit from GE/Quirky called the Aros. It’s controlled from an app on your phone and, in addition to the sleek and modern design, claims to save you energy compared to other units of the same power. Might be worth a look.

Review your roof. The most expensive (and most unwelcomed) damage a home can endure is the damage we can’t see. That’s why inspecting your roof each spring is a must. Houselogic has an extensive checklist for seasonal roof inspections, designed to keep you ahead of costly repairs and keep small problems from becoming big ones. The roof over your head has been good to you. Why not be good to it in return by giving it a little post-winter TLC?

How does your credit score measure up?

Home buying made easy with Marty Qualls

I had a great meeting with my Estate Planning Attorney, Jacob Smith, this morning and we talked about the different age groups of clients who we work with.  Just like Jacob, I many times work with the Gen Y or Millennial generation, those in the 19-29 age group.

I commented to Jacob that the Millennials like the fact that they can find you online (web page or blog) and that the information you provide there is easy to find, use and navigate.  I also know that they are the "Do It Youself" generation.  DIY describes how they operate within their everyday lives; they like to research things (Google, Wiki research), weigh out their decisions, not rush into things without considering options and alternatives. 

Even though Millennial's are the home buyer's who most want to easily and smoothly get a credit approval letter into place so that they can go make an offer, get it accepted and close on a loan, I found some interesting information from my research which can sometimes hinder the process of easily getting a credit approval letter: Gen Y has the lowest Average Credit Scores of any of the age groups!

3 Soothing Insights for Anxious First-Time Sellers

How to sell your home successfully!

By Tara-Nicholle Nelson | Broker in San Francisco, CA

I grew up just a couple of hours from Disneyland. So as a kid, one of my greatest joys (and greatest anxieties) revolved around the Pirates of the Caribbean ride (this was pre-Johnny Depp, folks). I loved that ride - especially the big drop at the end - but I also feared that ride, especially the big drop at the end. 

Fast forward a couple of decades and I found myself standing in line for the ride with my own kids, with bated breath and anxious fear/anticipation. We got on and I continued to hold my breath. Just a few minutes later, we sailed gently back to the starting point.

I walked up to an attendant and asked: “When did they take the dip out?” The guy looked at me quizzically and said that the ride’s course had never been changed. The ride didn’t change. But I had - I had grown taller, and so my perspective had shifted. Nothing about the ride was worth even a moment’s anxiety now that I’d grown taller and impervious to the dips and twists and turns.

10 steps to buying a home

Homeownership!

I have a "14 steps to Home ownership" outline which I give to my clients as we meet to complete the signing of their initial application paperwork.  There are 14 steps AFTER your offer to purchase a home gets accepted.

However, I realized that there are "10 steps to buying a home" that would help if you are just BEGINNING the process of purchasing a home.  This list contains important steps in the process  whether you are purchasing your first home, downsizing, or needing a larger home.

If you have further questions or if you would like to get your credit approval letter into place so that you can be a serious negotiator of sales price and asking the seller to pay for your closing costs, call me today and we can get started!

1. Determine your readiness-Are you in a rental or lease agreement, or are you on a month to month agreement?  Do you have money saved for a down payment (there are 100%, ZERO down programs available, call me for details).  Do you know what you qualify for based on your income and debts (this is something I can help with over the phone, call me). 
2. Become an optimal mortgage candidate-If your credit is "young" or you are rebuilding your credit, I have a "Credit Monitoring Program" I can refer you to that is an excellent tool for you to use!  
3. Get a pre-approval letter- My clients receive a FULL Credit Approval letter which is backed by a 3 bureau credit report AND an Automated Underwriting System decision.  This type of Credit Approval is what you need in the Mortgage world that we are currently in.  There can't be any guesswork in the mortgage process, you NEED a credit approval letter to have your loan successfully close! 

7 reasons NOT to payoff your mortgage before you retire

During an application meeting with my clients, whether they are close to retirement or not, I get to a spot where I talk about the conventional wisdom (we hear our parents and grandparents voices in our heads) of paying our mortgage off early. 

In a low interest rate environment I don't advise my clients to prepay their mortgage if:

1. They have credit card, car payment or other debt which has a higher interest rate than their mortgage, or if
2. They have not maxed out their employer matching on their 401k or are not fully contributing to an IRA or Roth IRA.

The article goes on to talk about other reasons that you shouldn't payoff your mortgage:
Forbes Article: 7 reasons not to payoff your mortgage before you retire

2014 Housing Market Prediction From Freddie Mac

The U.S. housing market has made some great strides in 2013, but it’s facing a slowdown at the end of the year due to government dysfunction, a sputtering economy and imminent volatility over the next debt-ceiling debate, according to Freddie Mac’s latest U.S. Economic and Housing Market Outlook.




Although, getting a mortgage shouldn’t be affected by any potential market decline, the report stated.



If you’re looking to buy a home, now may be the best time in terms of mortgage rates. Freddie Mac estimates that 30-year-fixed loans will “hover around 4.3 percent” through the end of the year, and then begin heading higher in early 2014.

Future Home Equity payments may be a shock

Lender Processing Services, Inc. (LPS) has released its October Mortgage Monitor which shows that 48 percent of outstanding second lien home equity lines of credit (HELOCs) were originated between 2004 and 2006.

Given that the vast majority of HELOCs originated during this time have draw periods of 10 years, they are set to begin amortizing over the next several years. As the payments on these HELOCs become fully amortizing, many borrowers may see monthly payments increase. According to LPS Senior Vice President Herb Blecher, recent increases in new problem loans among the HELOCs originated prior to 2004 (that have already begun amortizing) indicate increased risk of more delinquencies ahead.

"In the aggregate, the market is experiencing lower delinquencies," said Blecher. "However, among the HELOC population that has already begun amortizing, we are actually seeing an increase in new seriously delinquent loans. As of today, only 14 percent of second  lien HELOCs have passed this 10-year mark, leaving a very large segment of the market at risk of payment increases over the coming years.

Nearly half of all of these lines of credit were originated between 2004 and 2006, with the oldest set to begin amortizing next year. If this trend toward post-amortizing delinquencies carries over, we could be looking at significant risk to the home equity market over the coming years.

If you have a Home Equity Line of Credit, review your paperwork and know when your balance will be fully amortized and for what term.  While first mortgage rates are low, it may be worth looking into a refinance to consolidate the first and 2nd lien loans into one loan payment and prevent the shock of the future higher payment.  

Why offer your home for sale in the fall and winter?

 Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now.




Only Serious Buyers Are Out



At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or online doing their holiday shopping.




There Is Far Less Competition



Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale.  First time home buyers may not have children in school and they have more flexibility to move during the school year. 




The Process Will Be Quicker



One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.




There Will Never Be a Better Time to Move-Up



If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 25% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.




It's Time to Move On with Your Life



Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

Americans Are Making Poor Financial Decisions

In a recent National Foundation for Credit Counseling (NFCC) poll, when choosing between marriage, health, job and personal finance categories, an overwhelming 80 percent of respondents indicated they typically make the worst decisions when it involves their personal finances.



The worst decisions I make in life typically involve my:
A. Marriage = 9%
B. Personal finances =  80%
C. Health = 8%
D. Job = 3%
 
“It is good sign that consumers recognize and admit their problem,” said Gail Cunningham, spokesperson for the NFCC.

“Financial awareness often provides the motivation to jolt a person into taking action that can change the course of their financial life."

Shopping for a mortgage and meeting with the right professional can help to not make the mistake of  buying too much house, obtaining the wrong mortgage product for the needs that the family has and not having the educational experience needed to make the right financial decision.

Rent cost becomes a serious burden

Affordability problems for renters have skyrocketed over the past decade both in number and the share of renters facing them, according to a new report on rental housing from the Harvard Joint Center for Housing Studies.

The inability of so many to find housing they can afford dramatically impacts the health and well-being of U.S. renters, as lower-income households cut back on food, healthcare, and savings, just to keep up.  The report, "America's Rental Housing: Evolving Markets and Needs," finds that half of U.S. renters pay more than 30 percent or more of their income on rent, up an astonishing 12 percentage points from a decade earlier.

Much of the increase was among renters facing severe burdens (paying more than half their income on rent), boosting their share to 27 percent. These levels were unimaginable just a decade ago, when the share of American renters paying half their income on housing, at 19 percent, was already a cause for serious concern.

Renters currently make up 35% of the population and could benefit by looking at their purchase and mortgage payment options.

Conventional Loan Limits Announced!

   The Federal Housing Finance Agency (FHFA) has issued the maximum loan limits that will apply to conventional loans. The first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits. The maximum loan limits for 2014 remain unchanged from 2013; however, a number of high-cost area county limits have increased.

First Mortgage Loan Limits

The following chart contains the general loan limits for 2014:

Units	General Loan Limits
	Contiguous States, District of Columbia, and Puerto Rico	Alaska, Guam, Hawaii, and U.S. Virgin Islands
One	$417,000	$625,500
Two	$533,850	$800,775
Three	$645,300	$967,950
Four	$801,950	$1,202,925

 The maximum limits for 2014 are:

Units	High-Cost Area Loan Limits
	Contiguous States, District of Columbia, and Puerto Rico*	Alaska, Guam, Hawaii, and U.S. Virgin Islands
One	$625,500	$938,250
Two	$800,775	$1,201,150
Three	$967,950	$1,451,925
Four	$1,202,925	$1,804,375

 These limits were determined under the provisions of the Housing and Economic Recovery Act of 2008.

*Puerto Rico and a number of other states do not have any high-cost areas in 2014.