• What makes working with a Realtor so important?
• Tips to help your home sell faster and put more money in your pocket!
• Home Buying Tips!
• Understanding the Realtor/Reality Language!

It is a good idea to work with a Realtor for several reasons:

• A realtor will help you analyze your financial situation, so you can determine what you can afford.
• A realtor know the in's and out's of buying a home and will be able to explain thing to you.
• A realtor have easy access to all the properties listed for sale by Realtors in your area.
• A realtor can show you homes in the area that interest you.
• A realtor can help you with you all the necessary paperwork when you are ready to make an offer.
• A realtor will arrange the closing and be there to make sure that you are confident and every thing runs smoothly.
   

Tips to help your home sell faster and put more money in your pocket!

Outdoors

1. Be sure your lawn and shrubbery is kept trimmed at all times. Consider removing overgrown trees and shrubs that hide the house from the street.
2. Keep the garage doors down at all times.
3. For a touch of color, have seasonal flowers growing in beds and containers.
4. Make sure your driveway is in good repair. Pressure wash concrete drives and walks to remove stains and car drippings, and put a fresh coat of sealer on asphalt drives.
5. Make sure patios and decks are clean and in good repair. Replace any rotten wood and nail down loose boards on decking or steps; pressure wash if needed.
6. Garage sale time! Clear out everything you don't intend to keep and tidy up what's staying. Make sure garage doors and openers are in proper working order.
7. Check all railings and fencing to make sure it's in good repair and freshly painted.
8. Pay special attention to the area around your front door; make sure your doorbell works, clean all cobwebs, leaves, and other debris that may have accumulated there. Give the front door a fresh coat of paint if needed; paint is one of the most cost effective fix up items you can do.
9. Check for broken windows or leaking seals on thermo pane windows; replace if necessary.
10. Clean all the cobwebs from around the front door. Make sure all outdoor lighting (especially front porch) is clean and shiny; replace if necessary. It is especially important that the entrance to your home make a good first impression on prospective buyers. This sets the tone for the whole showing.
11. Check your mailbox. Is it straight and upright? Neatly trimmed around?
12. Before you start indoors walk across the street in front of your house and look back (like a buyer will see it). Does it present an appealing appearance?

Indoors

1. Start by walking through the house and making a list. Do your carpets need shampooing? Floors need a fresh coat of wax? Dust all ceiling fans especially the blades and wash light fixtures. 14. You're going to have to pack when you move anyway, so go through all your closets and pack up everything you don't need for the next couple of months. A closet with only a few neatly arranged items creates an impression of abundant storage space.
2. Thin out overcrowded rooms. Ever notice the model homes sparse furnishings? They make the rooms look larger. Consider renting a storage facility to store excess lamps, tables, and large items that eat up space in a room.
3. Go through and pack up most of your family pictures and collections of model ships, stamps, quilts, or anything that might cause a buyer to stop and look at your collections of stuff instead of your house.
4. Check all light fixtures to make sure all the bulbs burn. Use the largest wattage bulb that you safely can to give off more light.
5. Wash all your windows and make sure window treatments are clean and in good repair. Keep the window coverings open whenever possible to let in more light.
6. With a good degreaser, wipe down everything in the kitchen so it feels clean to the touch. Clean your stove and oven; replace stove eye pans if needed
7. Go through your kitchen cabinets and pantry to make sure they're neat and tidy; give any food that you don't plan to use right away to the local food pantry.
8. Make sure your sinks are clean at all times and free of dirty dishes and utensils.
9. Remove all excess items from your counters to give the impression of lots of work surface.
10. Pleasing aromas add to the appealing atmosphere we're trying to establish for your buyers; consider keeping a saucepan of potpourri on the stove to give off an appealing scent.
11. Clean all light switch places by taking them off and washing with soap and water; replace if necessary.
12. Make sure the bathrooms are spotless at all times with fresh towels, decorative soaps, and all fixtures are shiny, scrubbed, and in good repair.
13. Check all faucets and shower heads to make sure they're spotless and free of leaks and drips.
14. Repaint interior rooms if needed with neutral colors.
15. Don't forget your ceilings too; years of living in a home with cooking, smoking, and other everyday activities can stain ceilings. Paint ages; repaint if needed.
16. Don't have large, space eating house plants sitting around; give them away or ask a neighbor to store them until you move.
17. The more light you can get into a room the bigger and more spacious the room will appear. When you leave for a showing, turn on lights in rooms that are normally darker than you would like and make sure the window coverings are open to admit outside light.
18. An old decorator trick to bring in more light as well as make rooms appear larger are mirrors; either hanging on a wall or on a stand.
19. Pack away and store out of season clothes. Get rid of extra hangars. Straighten up your shoes (consider some inexpensive shoe racks from a discount store like K-Mart or Wal-Mart).
20. When painting don't forget the interiors of closets and the closets doors; make sure all closet and interior doors open and close correctly.
21. If you have a pet make sure there are no odors. You may not notice odors since you live with your pet every day, have a neutral third party give your home a "sniff" test for objectionable odors that may turn buyers off.
22. Also, when buyers come to visit, keep your pet under control, or better yet, get a friend or neighbor to "pet sit" for you while the buyers are looking.
23. It's important that you leave the house for all showings. Buyers feel less inhibited if you're not around and will usually take a closer look in closets and in kitchen cabinets, as well as voice any objections that your agent can then deal with. If the buyers won't make comments because you're following them around pointing things out then your agent can't deal with any potential problems that may hinder making an offer.
24. If you have several vehicles make sure the spot closest to the door buyers enter through is empty for them.
25. Freshly baked or even store bought cookies & little snacks along with an appropriate beverage (hot in winter, cold in summer) along with a sign saying "Please Sit Down and Enjoy a Treat While You're Here" will make your home more memorable even if they don't take anything. Remember little things can go a long way towards getting your home sold quickly for the best price.

Buying A Home
Buying a home is usually the largest financial transaction most people have in a lifetime. Helping my clients buy a home is a responsibility I take very seriously. If you're thinking of buying now or in the near future I would appreciate the opportunity to help you.

There are literally hundreds of financing programs available now for everyone from people buying that first home to seasoned buyers financing a multi-million dollar home.

Down Payments
It is not possible to give a hard and fast rule on how much you will need for a down payment. Generally the more cash you have available for a down payment the lower your monthly payments will be because you won't be borrowing as much.
Here's a couple of examples:
With Federal Housing Administration Financing (FHA) you can get into a home for as little as 3% of the purchase price as a down payment. FHA financing is probably the best way for average buyers to get into a home with the least amount of cash.
With most conventional financing, if you're able to make a 20% down payment you will not have to pay an additional mortgage insurance premium (MIP). MIP protects the lender if you default on the loan.

Closing Costs
Closing costs are what it costs you in cash, and in addition to your down payment to buy a home. Some of the items included in closing costs are; appraisals, surveys, loan origination fees to lender, title search, property transfer tax, and several other fees. As a rough, rule of thumb, closing cost are about 3 to 6% of the sales price but can vary widely. It's also possible to have your closing costs paid in part by someone else such as a relative or even the seller of a property. I can advise you on this as your agent.

How much can you borrow
Here's a quick and easy way to calculate how much you will be able to borrow.
Step one is to determine your gross income. Your gross income is what your total household income is before any taxes are deducted. Divide this figure by 12 to get your monthly gross income.
There are usually two figures lenders look at to determine how much they will lend you to buy a home:
The first is what your housing expense will be. These expenses include the principal and interest payment, property taxes, homeowners insurance, and any condominium or co-op fees. Together all these payments should not total more than 28% or your monthly gross (gross is before taxes) income. This is your housing expense ratio.
The second is the total of your housing expense plus all your other long-term debts. The total of all these debts should not total more than 36% of your gross monthly income.
Fannie Mae, a federally chartered, private corporation, that helps people like you and me buy houses offers some excellent Calculators (http://www.fanniemae.com/index.jhtml) to help you determine how much you can borrow, what your payments will be, and what a specific monthly payment will buy. Fannie Mae also offer some very in depth advice on buying a home at HomePath
If you would like help determining what price home you can qualify for or help finding a home, please give me a call or e mail, I would be happy to help you.

Understanding the Realtor/Reality Language

• Adjustable Rate Mortgage (ARM): A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).
• Adjustment Period: The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year.
• Amortization: Repayment of a loan in installments of principal and interest, rather than interest-only payments.
• Annual Percentage Rate (APR): The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.
• Appraisal: An estimate of the property's value.
• Assumption of Mortgage: A buyer's agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.
• Balloon Payment: A lump sum principal payment due at the end of some mortgages or other long-term loans.
• Binder: Sometimes known as an offer to purchase or an earnest money receipt. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.
• Buydown: Permanent-prepaid interest that brings the note rate on the loan down to a lower, permanent rate. Temporary-prepaid interest that lowers the note rate temporarily on the loan, allowing the buyer to more readily qualify and to increase payments as income grows.
• Cap: The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.
• Cash Reserves: The amount of the buyer's liquid cash remaining after making the down payment and paying all closing costs.
• CC&Rs: Covenants, conditions and restrictions. A document that controls the use, requirements and restrictions of a property.
• Certificate of Commitment: The lender's approval of a VA loan, which is usually good for up to six months.
• Certificate of Reasonable Value (CRV): A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.
• Chattel: Personal property.
• Closing Statement: The financial disclosure statement that accounts for all of the funds received and expected at the closing, including deposits for taxes, hazard insurance, and mortgage insurance.
• Commitment Period: The period during which a loan approval is valid.
• Condominium: A form of real estate ownership where the owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surface (walls, floors and ceilings) serve as its boundaries.
• Contingency: A condition that must be satisfied before a contract is binding. For instance, a sales agreement may be contingent upon the buyer obtaining financing.
• Conversion Clause: A provision in some ARMs that enables home buyers to change an ARM to a fixed rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed rate mortgages. This conversion feature may cost extra.
• Cooperative: A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.
• CRB: Certified Residential Broker. To be certified, a broker must be a member of the National Association of Realtors, have five years experience as a licensed broker and have completed required Residential Division courses.
• CRS: Certified Residential Specialist.
• Debt Ratios: The comparison of a buyer's housing costs to his or her gross or net effective income, and the comparison of a buyer's total long-term debt to his or her gross or net effective income. The first ratio is housing ratio; the second ratio is total debt ratio.
• Due-On-Sale Clause: A clause that requires a full payment of a mortgage or deed of trust when the secured property changes ownership.
• Earnest Money: The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.
• Escrow: A procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties' instructions and assuming responsibility for handling all of the paperwork and distribution funds.
• Equity: The difference between what is owed and what the property could be sold for.
• FHA Loan: A loan insured by the Federal Housing Administration (of the Department of Housing and Urban Development).
• Federal Home Loan Mortgage Corporation (FHLMC): Called "Freddie Mac"; a part of the secondary market, particularly used to purchase loans from savings and loan lenders within the Federal Home Loan Bank Board.
• Federal National Mortgage Association (FNMA): Popularly known as "Fannie Mae." A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.
• Fee Simple: An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will or inheritance. It is the greatest interest a person can have in real estate.
• Finance Charge: The total cost a borrower must pay, directly or indirectly, to obtain credit according to Regulation Z.
• Fixed Rate Mortgage: A conventional loan with a single interest rate for the life of the loan.
• Fully Indexed Rate: The maximum interest rate on an ARM that can be reached at the first adjustment.
• Gift Letter: A letter from a relative stating that an amount will be gifted to the buyer, and that said amount is not to be repaid.
• Government National Mortgage Association (GNMA): Called "Ginnie Mae"; a governmental part of the secondary market that deals primarily in recycling VA and FHA mortgages, particularly those that are highly leveraged.
• Graduated Payment Mortgage: A residential mortgage with monthly payments that start at a low level and increase at a predetermined rate.
• GRI: Graduate, Realtors Institute. A professional designation granted to a member of the National Association of Realtors' who has successfully completed courses covering Law, Finance and Principles of Real Estate.
• Home Inspection Report: A qualified inspector's report on a property's overall condition. The report usually includes an evaluation of both the structure and mechanical systems.
• Home Warranty Plan: Protection against failure of mechanical systems within the property. Usually includes plumbing, electrical, heating systems and installed appliances.
• Index: A measure of interest rate changes used to determine changes in an ARM's interest rate over the term of the loan.
• Initial Interest Rate: The introductory interest rate on a loan; signals that there may be rate adjustments later in the loan.
• Joint Tenancy: An equal undivided ownership of property by two or more persons. Upon the death of any owner, the survivors take the decedent's interest in the property.
• Jumbo Loans: Mortgage loans that exceed the loan amounts acceptable for sale in the secondary market; these jumbos must be packaged and sold differently to investors and therefore have separate underwriting guidelines.
• Lien: A legal hold or claim on property as security for a debt or charge.
• Loan Commitment: A written promise to make a loan for a specified amount on specified terms.
• Loan-To-Value-Ratio: The relationship between the amount of the mortgage and the appraised value of the property, expressed as a percentage of the appraised value.
• Lock-in: The fixing of an interest rate or points at a certain level, usually during the loan application process. It is usually done for a certain period of time, such as 60 days, and may require a fee or premium in the form of a higher interest rate.
• Margin: The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
• Mortgage Insurance Premium (MIP): The mortgage insurance required on FHA loans for the life of said loans; MIP can either be paid in cash at closing or financed in its entirety in the loan. The premium varies depending on the method of payment.
• Mortgage Life Insurance: A type of term life insurance often bought by home buyers. The coverage decreases as the mortgage balance declines. If the borrower dies while the policy is in force, the mortgage debt is automatically covered by insurance proceeds.
• Negative Amortization: Occurs when monthly payments fail to cover the interest cost. The interest that isn't covered is added to the unpaid principal balance, which means that even after several payments the borrowers could owe more than they did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that aren't high enough to cover the interest.
• Origination Fee: A fee or charge for work involved in evaluating, preparing, and submitting a proposed mortgage loan. The fee is limited to 1 percent for FHA and VA loans.
• Payment Cap: The maximum amount the payment can adjust in any given time frame.
• PITI: Principal, Interest, Taxes and Insurance.
• Planned Unit Development (PUD): A zoning designation for property developed at the same or slightly greater overall density than conventional development, sometimes with improvements clustered between open, common areas. Use may be residential, commercial or industrial.
• Point: An amount equal to one percent of the principal amount of the investment or note. Lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.
• Prepayment Penalty: A fee charged to a borrower who pays a loan before it is due. Not allowed for FHA or VA loans.
• Private Mortgage Insurance (PMI): Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.
• Purchase Agreement: A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale.
• Rate Gap: The difference between where the rate is now and where it could adjust to on an ARM. Also used to compare the difference between a current conventional rate and that of an ARM.
• Realtor': A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors.'
• Regulation Z: The set of rules governing consumer lending issued by the Federal Reserve Board of Governors in accordance with the Consumer Protection Act.
• Tenancy in Common: A type of joint ownership of property by two or more persons with no right of survivorship.
• Title Insurance Policy: A policy that protects the purchaser, mortgagee or other party against losses.
• VA Loans: A loan, made by a private lender, that is partially guaranteed by the Veterans Administration.