Spring Fling!

May is nearly here, which means it’s time to get your nest ready for warmer weather–without breaking the bank.  I’m an optimist – I’ve already packed away all my long sleeved tops and winter gear and filled my drawers with summer tanks and shorts.  I’m also getting a jump on the season by getting spring projects done so I can go to the beach guilt-free when the thermometer does edge skyward. Here’s my springtime checklist – along with a few wise purchases and affordable ways to help your home spring forward for the season.  

“Splurges” That Are Worth the Price

In the spirit of the season, there are five items, none of them are significantly costly (after all, whose spending money like water these days?) you can indulge in to dress up your nest for warmer weather, without breaking the bank.

1. Window coverings- Heavy drapes and dreary mini blinds getting you down? This is the perfect time to lighten and brighten your shades and curtains. Replace mini blinds with natural bamboo or matchstick blinds, available everywhere from discount stores to big home centers and specialty stores. Switch out heavy velvet drapes (store them until fall) with cotton panels or sexy sheers! 

2. Material change-  Change the entire look of your rooms by replacing a drab or broken doorknob.  There are so many styles to choose from and this is a project you can do on a weekend.  Go to any home center or hardware store and pick out the style that best suits your taste.  Make sure you keep all the parts organized.  All you will need is a screwdriver or power screwdriver for quicker action and the appropriate hardware that usually comes with the doorknob. Remove the existing doorknob by loosening the two screws that hold the plate on.  Pull the doorknob apart and remove them and then the two screws holding the bolt. To install place the trim piece between the new doorknob and the door and insert the doorknob into the hole in the door.  Insert the other doorknob with the trim piece on the opposite side of the door making sure the two are aligned. Insert the screws and tighten.

 

3. Swap out accessories-  Décor is in the details. Switch cranberry and pine candles in crimson and forest green for white and cream floral scented pillars. Hide dark colored pillows with bright, cheerful slipcovers. Get rid of pinecone potpourri and replace with a bowl of lemons or rose petals. Store the furry throw and replace with a light hand woven cotton ethnic style blanket.

4. Get fresh!  Take a look around – does your bedding need refreshing? How about springing for a set of new fluffy white Egyptian cotton towels? A new tablecloth and napkins might be just what your next dinner party needs. Or, a set of margarita or martini glasses, a lemonade pitcher or some new cocktail plates can make your old set of dishes (and your table) seem somehow new and exciting.

5. New planters- If you have a porch, balcony or desk that could use some color, consider changing terracotta or plastic planters for new and colorful ceramic containers. A few easy care annuals planted inside, and you’ve got yourself a low-maintenance, stress-free Garden of Eden right outside your door.

6. A place to sit – A bistro table and chairs, or a classic picnic table are two inexpensive ways to create that outdoor room you’ve always heard (and maybe dreamed) about. There is no reason to invest in an outdoor kitchen or giant fire pit – some simple and comfortable seating, decorated with fun colorful pillows from a local (but stylish) discounter is all you really need. Inexpensive, oversized beach towels make perfect and practical, whimsical and washable tablecloths. Or, placed on the floor of your beck or balcony with a few big floor pillows, they come a pretty perch for casual lolling and luxuriating!

My Springtime Checklist! 

1.     Scrub-a-dub-dub. It isn’t called “Spring Cleaning” for nothing. Dust bunnies, cobwebs, grim and grit has all got to go.

2.     Wash your windows — Nothing brings in light like washing away winter grit.

 3.     Filters- Clean or replace filters in cooling units.

4.     Call in the pros- Spring is the perfect time to get your carpets, rugs and upholstery cleaned.

5.     Declutter- While you’re giving the floors and walls the clean weep, you may as well empty out your closets and drawers, tabletops and cabinets. Get two bins, one marked “keep” the other “get rid of” and go to it. Be cold, he heartless, be unforgiving. And don’t forget to get a receipt when you donate your stuff to the Goodwill or Salvation Army.

 6.     Shower Curtain- Replace the shower curtain liner in your bathroom, if you use one. Mold and mildew can build up and exacerbate allergies and asthma.

7.     Let the air in- Open your windows, even if you think it’s a bit chilly outside. Just one hour of fresh air flow creates circulation and improves your home’s air quality (yup, even in the city).8.     Mirror It-Hang large mirrors in your living room or bedroom instead of art- work.  Large mirrors bring sparkle and light into rooms, and give it a chic, modern look. 

 Barbara’s tip- to locate an exact spot on your wall for the more heavier mirrors use construction paper or newspaper.  Trace the paper over your mirror or picture and u se tape to hang on the wall so you know the exact spot and your not fumbling with the heavy mirror.  I do it all the time!

8.     Rearrange your furniture. Call a friend, put socks on the legs of heavy pieces to avoid scratching the floor, and see if you can come up with a new seating or home office arrangement. It’s the perfect thing to do after you’ve cleaned everything.

9.  Add life-  Now is the time to make an early visit to the local nursery or home center for fresh herbs. Plant them in a bowl or urn and place them near a sunny window for fresh foliage and calorie-free flavoring for your food. Later, if you have a place for them, you can pop them in an outdoor bed. This more than anything will remind you that summer is just a moment away.

10.  Complete indoor projects- Are there any home improvement or craft projects you started over the past few months but have not completed? Now is the time to finish them up – reserve a weekend for doing so. Your attention will soon be turned to the out of doors, and if you don’t get those projects finished now (painting your bedroom, refinishing a chair, completing a scrapbook) they will be staring you in the face (accusingly) come September.

11.  Take it outside-  If you live in the ‘burbs’ or in a town house, now is the time to clean gutters of leaves left over from last fall. Check to make sure the trim on the exterior of your house needs touching up or total repainting. If so, book painters early as they get super busy in the summer.

12. Sweep it away-  The leaves and other debris from a long winter may have accumulated on your front stoop or on a balcony or backyard. Clean it up now, and remove and replace any dead plants.

Now, have some fun , invite some friends over and have a Spring Fling Party!I   If I can do it so can you!

Barbara K

I know I might sound like a broken skill saw , but if it takes one of my power drills and a big fat hole in someone’s head to get them to realize that there’s no time like the present to buy a home than at least I’ve accomplished my mission!  My mission of course is to empower and give power to the weak, the strong and everyone in between.

 I will say it again and now even more so.  With interest rates lower than they’ve been in years now it’s time to stake your claim.  The following will offer you my real world advice on almost everything you will need to know when buying a new home.

So what are you waiting for? No cute studs here…go out and get one! (and save one for me!)

                       Invest In a Nest!

Buying my first home was very exciting and one of the best investments I have ever made.   It’s a true home and a place where I love inviting my friends and families. Many people, and women in particular, think about buying a house but don’t quite know how to begin. However, you can do it, and why not do it now? Buying a condo or house is always a wise investment, whether it’s your primary residence or a property you plan to rent or sell. You can use your investment to upgrade to another bigger, better home, or take the equity you have earned and turn it into money for education, entrepreneurial pursuits, renovation projects, or retirement. Owning your own place opens the door to endless possibilities. Buying a house is probably the biggest purchase you will ever make, but it’s not out of your reach, here are my top tips to get you on the right road.

1. Know  Your Credit Score

The most important part of qualifying for a mortgage isn’t how much of a down payment you can make, it’s how good your credit score is. The better your credit, the more easily you can secure a mortgage loan (even more so in today’s real estate climate) even without a fat bank account or a high-paying job. The first and most important action you should take is to get your credit report from each of the three major credit bureaus, Experian, Equifax, and Trans Union.  You have to get all three reports because the companies and utilities that extend you credit don’t report to all three bureaus.  You can access the reports for free at least once a year and checking your own credit does not count as an inquiry

            Your credit score is based on the information in the credit report. In the simplest terms, the score indicates how likely you will be to pay back a loan in full and on time; it reflects your credit history, how much debt you currently carry and how much debt you’re already approved to carry in the future (add up the credit limits on your credit cards for the answer), how long your credit history is, and how timely you are in paying bills. The higher the number, the better your credit is, ranging from a low of 300 to a perfect score of 850. Do everything you can to improve your score—it’s even more important than saving money, in my opinion! Why? Because the higher your score, the better the interest rate you will get, although gone are the days of “no money down”!

 Improve Your Credit Rating

The first time many people see their credit report is when they are about to purchase a home or a car. Because it can take about 3 months (and sometimes much longer) to change a credit score, if the score is wrong or low at that time, it could be too late to fix it. You could lose that fabulous apartment! Don’t let that happen—start changing your score today. Here are six proven ways to improve your score:

1. Check and correct your credit history

Thirty-five percent of your score comes from your credit history. Unfortunately, 70 percent of credit reports contain errors—mistakes that can adversely impact your score! Mistakes range from the misspelling of names, to reporting wrong addresses or places of employment, to confusing the accounts of people with the same name, to including outdated information. You can and should report errors to each of the credit bureaus since they do not share information. You can file disputes by phone or by mail, but you may find that it is most convenient to dispute errors online. Once the credit bureaus receive a dispute they have 30 days to investigate. If they cannot verify the information in that time, it is deleted or corrected by default. Once you dispute information, the onus is on them to prove it. If your payment was late once or twice and the creditor reported it to the credit bureau, you can ask the retailer or credit card company to issue a letter of correction. For example, many retail stores would prefer to keep your business by issuing a correction than lose it by refusing to. Always follow up on promised corrections by rechecking your credit report.  Even when some of the accounts are closed, having dozens of them may make lenders assume that you are not a stable credit risk.

2. Pay down high balances

The amounts you owe on revolving credit accounts are responsible for 30 percent of your score.  Pay down balances, your credit score can go up by reducing your balance.

3. Make history with your credit 

It’s good to have some activity and history on the account.

4. Think twice about new credit

When you open a new credit card account, the creditor makes an inquiry to one of the credit bureaus to evaluate your history. The number of recently opened accounts and credit inquiries accounts for 10 percent of your score. (Note that checking your own credit report doesn’t count as an inquiry, however.) 

5. Pay with cash

Using debit cards and cash is a good way to control your debt (and therefore maintain a great credit score).

6. Pay all your bills on time

Late payments can have a substantial negative impact on your score. For example, you can raise your score by as much as 20 points simply by paying bills on time for 1 month!

 

Define What You Want

Make a list of things that are important to you…this will keep you focused.

1.What’s your lifestyle?

2.What’s important to you?

3.What about house style? (modern, traditional?)

4.Location is important?

You might get a good deal on a house in a neighborhood that’s “up and coming,” meaning that the boundaries of a better neighborhood or town are being pushed farther out to include other streets, sections, or towns. An indication that a neighborhood is on the upswing is when you see a lot of home improvement activity and new construction.

If you simply must have a house in an established and popular location, it will cost more. One thing to keep in mind, however, is that if a location is really desirable you may have to make serious concessions on your wish list or be ready to roll up your sleeves and put sweat equity into a fixer-upper. I happen to love fixer-uppers and would buy one any day of the week. I always say, buy the least expensive house in the most expensive neighborhood!

Fixer-Uppers

When I see a house that needs help I immediately get excited and see dollar signs. A house that needs work is like money in your pocket, because as soon as you make even one improvement on a needy house, your equity in it—as well as its resale value—increases. In fact, unlike most people, I stay away from renovated houses. Why pay someone else for work you can do to your exact specifications yourself? Don’t be afraid of work, which can you money at the same time.

 Pre-construction

Condos and houses have a financial advantage,  because the time it takes to build them and that’s time during which your deposit is working for you in escrow. Historically in the past 5 years once an apartment house or development is completed, the price almost without exception goes up. Look at it this way: You have not done a thing and yet the value of your house and your equity has increased!

 Raw Land Often raw land can be converted into a construction loan, which then can be converted into a mortgage when the house is built. The advantage of these convertible loans is that there’s one loan application and one loan closing. The lender finances the construction of the home and, when it’s ready for occupancy, the loan converts into a mortgage.

Understand the Language of Mortgages

Once you have found the land, house, or condo of your “dreams,” you will most likely need to apply for a mortgage. There are different kinds of mortgages, each representing a different way of financing the purchase of a house. Talk to your mortgage broker or lender to figure out which one is best for you. Here are the two most common types:

Fixed rate: This type has both a fixed term (usually 15 or 30 years) and a fixed interest rate, both determined at the start of the mortgage. The monthly payment of principal and interest doesn’t change during the term of the mortgage. A fixed-rate mortgage is a good idea if you plan to live in the house for more than 5 years and interest rates are predicted to go up.

Adjustable rate: The interest rate on your mortgage will be raised or lowered according to the current interest rate. The monthly amount for your principal and interest payment will go up or down with these rate changes. If rates go down, you win. If they go up, you can lose. This type of mortgage is best if rates are low and you don’t expect to stay in the house for more than a few years.

Get Preapproved

Pre-approval gives you a lot of leverage when buying a house. The seller sees it as an advantage because he or she knows you are a serious buyer able to close the deal very quickly because you’ve already secured the loan. To get pre -approved, you provide the same information to the lender that you would if you applied for a mortgage after making an offer. Your income, credit history (and credit score), debts, and assets will be verified. The lender then issues a letter stating that your mortgage is approved for up to a certain dollar amount for a certain period of time. Once you’ve been pre-approved for a mortgage, avoid taking on any substantial new debt and make timely payments on all of your existing debts.

Go to the Pros

Hire (the right) Real Estate Attorney-  There are many attorneys out there (believe me I’ve dealt with the very good ones and the very bad ones).  Make sure he specializes in residential real estate transactions and just like hiring a contractor ask for 3 references of transactions he has completed.

Select a Mortgage Broker

You can get a mortgage directly from a bank, a mortgage company, or a credit union, but I believe you can get the best deal on a mortgage through a mortgage broker.

First ask for details on each potential loan:

Is the rate fixed or adjustable? What is the loan’s annual percentage rate (APR)? Expressed as a yearly rate, this includes the interest rate, points, broker fees, and any credit charges you may have to pay.

How do the points translate into dollars? A point is a fee paid to the lender or broker for the loan. Ask each potential lender for a quote in dollars (rather than just the number of points) so you’ll know how much you will have to pay at the closing.

Is Private Mortgage Insurance (PMI) required? If you put down less then 20 percent, lenders generally require you to purchase PMI to protect them in case you fail to repay the loan. Find out the exact monthly cost of PMI and how long you will be required to carry it.

Once you find the best possible terms, ask the broker for a written rate lock. It should stipulate the interest rate, how long the lock-in will last, and the number of points to be paid. Locking in protects you from a rate increase if interest rates go up while your loan is being processed.

 Credit ResourcesCredit Agencies

Experian

Mailing addresses:475 Anton Boulevard Costa Mesa, CA 92626or955 American Lane Schaumburg, IL 60173Telephone: 888-397-3742 Web site: www.experian.com

Equifax Information Services, LLC

Mailing address:Disclosure DepartmentP.O. Box 740241Atlanta, GA 30374Telephone: 800-685-1111Web site: www.equifax.com

TransUnion LLC

Mailing address:P.O. Box 1000Chester, PA 19022Telephone: 800-888-4213[NEE1] Web site: www.transunion.com

Annual Credit Report Request Service

Annualcreditreport.com is the official site that helps consumers obtain the free credit report they are entitled to annually, as required by law.Mailing address:Annual Credit Report Request ServiceP.O. Box 105281Atlanta, GA 30348-5281Telephone: 1-877-322-8228[NEE2] Web site: www.annualcreditreport.com Credit Repair

Visit the Federal Trade Commission’s credit repair page at www.ftc.gov/bcp/conline/pubs/credit/repair.htm for information.

Make an Offer!

Congratulations! You’ve found a home you love. But hold on! Before you submit an offer, visit the property at night and on weekends. Walk around the neighborhood. Make sure it’s comfortable and quiet (or lively and loud, if that’s what you’re after). Take a close look at the adjacent houses. Do the neighbors maintain their homes?  If everything checks out, don’t show your enthusiasm to the seller or the seller’s agent. They can and will use that information to get more money from you.

Before making an offer, ask your agent for a comparative market analysis (CMA). This informal report lists the addresses of recently sold homes in the same neighborhood, along with the date of the sale, the price, and the number of bedrooms and bathrooms. You can find similar information on websites that list recent sales in your area offer should be comparable to those selling prices, which may not be the same as the seller’s asking price.

If you make an offer and the seller accepts it, insist that the contract include two escape clauses: a financing (or mortgage) contingency and an inspection contingency. If for some reason you can’t get a mortgage, the financing contingency releases you from the contract and guarantees that you will get back any deposit money you put down on the house (called earnest money).

The inspection contingency will release you from the contract and ensure the return of your deposit if a licensed professional inspector finds any damage or structural flaws in the house during a thorough inspection.

Who are these people?

An inspector is someone who looks at a home’s basic structural features and reports on them to you in writing. They usually charge a flat fee for the service, typically from $500 to $1,000.

What kind of training and certification do they need?

An inspector should have several years of experience and be certified by the American Society of Home Inspectors. Ask the inspector if he or she has errors and omissions insurance, too. This gives you some level of protection should the inspector overlook or forget to mention something important.

How long does an inspection take and what should happen?

Depending on the size of the property, an inspection should take 2 to 4 hours. Carve out some time to accompany him or her on the inspection. The inspector will look at all the basic structural features of the house, including:

Foundation: Is there evidence of cracks, shifting, or excessive moisture?

General Construction: How good is the quality of the general construction?

Exterior: If the property is a house, does it need exterior repairs or maintenance? What is the approximate age of the roof? What is the estimated remaining life of the roof? Is the condition good? What about landscaping? Have mature trees or shrubs close to the house caused damage to the home’s foundation?

Pests: Is there any indication of pests, such as rodents, termites, carpenter ants, or other insects?

Attached Structures: What is the condition of any attached structure ?

Plumbing: What is the overall condition of the plumbing system? Is there evidence of leaks or water pressure problems?

Electrical: Do any dangerous electrical situations or code violations exist? What is the electrical output capacity?

Heating and Cooling Systems: What are the ages of these systems?

Interior: Do doors and windows open and close properly? Are floors firm and level?

Kitchen: Are appliances functioning properly? Is the plumbing, including the dishwasher connection, in good repair?

Baths: Is the floor solid? Is there evidence of old or new water leaks?

Attic and Basement: Are the floor and ceiling joists solid? Is there any indication of water damage or mold?Radon testing: Is there an unacceptably high level of radon in the home? Homes all over the United States have been found to have some level of radon according to the U.S. Environmental Protection Agency. An elevated rate is considered to be 4pCi/L or higher. Check the EPA Web site (www.epa.gov) for more information.

Purchasing Home-Owner’s Insurance

You’re almost done, but before you seal the deal you need to show proof of insurance on the property. An independent insurance agent sells policies from a variety of insurers and can help you find the best policy. The best policies cover the cost of replacing the home and its contents in case of fire, theft, or other disasters—even terrorist attacks (in New York City, for example, many insurers now offer terrorism riders). You can also purchase riders for flood and hurricane damage, which may be especially important if you live in a region of the country that is prone to these events.

 

Close the Deal

Closing is the process you go through to finalize the deal you made to buy the house, assume ownership, and take possession of the property. Closing procedures vary from region to region. In some areas, the buyer, seller, and real estate agents all attend. In other areas, only the buyer and his or her agent attend, along with the closing agent. The closing happens in a lawyer’s, title companies, or escrow company’s office. The seller’s attorney prepares the deed and coordinates all the other paperwork with the buyer’s attorney or closing agent.

There is a lot of paperwork involved in a real estate transaction. Get your pen ready! Here is a list of the common documents that are prepared for a closing:

Settlement statement

Contract

Loan papers (for the buyer) giving the monthly payment amount, which includes real estate taxes

Title insurance (from the buyer)

Proof of home-owner’s insurance (from the buyer)

Title or deed

Down payment and closing costs (from the buyer)

Payoff for any existing mortgage

Funds available to the seller upon recording the new deed

Beyond the Down Payment: Closing Costs

Closing costs are expenses associated with the loan you take out to buy property. Most but not all of these costs must be paid on the day you finalize your purchase. Luckily, you will have a fairly good idea of how much you will have to set aside for closing costs because the Real Estate Settlement Procedures Act (RESPA) requires that lenders and mortgage brokers give you what is called a good faith estimate of the loan-related expenses due at the closing. Here is a list of the fees most commonly included in closing costs:

 

Loan origination covers the lender’s costs of processing the loan. Measured in “points,” each one of which represents 1 percent of the loan amount, the fee varies among lenders.

 

A loan discount or “discount point” is a charge imposed by the lender or broker in exchange for lowering the interest rate on the loan. Each point costs 1 percent of the loan amount and lowers the rate by 0.125 percent.

 

Appraisal fees pay for an appraisal report, which the bank or lender requires to establish the property’s worth before issuing you a loan to buy it.

 

Credit report fee pays for the reports the lender uses to check your credit history.

 

Title search and title insurance fees ensure that the property is not subject to liens or other problems. Some states require you to hire a lawyer to conduct a title search; others allow you to hire a title search company to do this work.

 

Notary and recording fees may be charged by the closing agent to have loan documents notarized and the new deed recorded in your community’s public record.

 

A lender’s inspection fee is charged when you build a home or buy a house or apartment that is under construction. The fee covers the cost of the routine inspections the lender requires to monitor construction and then release funds as work progresses.

 

Home inspection is considered a closing cost, even though you pay for it before the actual closing date. Specialized inspection costs, such as radon tests and pest inspections, also fall into this category.

  

Wow, you’re ready to go…if I can do it so can you!!

Barbara K