Uncategorized

You look at the palm of your hand and you can almost see it, the glistening, sense-of-security-giving key to your new home. Youve planned out your budget, youre on track for mortgage loan approval, youve thought of neighborhoods, youve called the agent, you are pretty much set. But then you figure, wow, what kind of home do I really want?

You could be set on dimensions and location, but deciding what kind of property you want to be responsible for is a whole different ball game. For example, there are condos and there are houses. In hopes of not pining over a decision for the next six months, lets focus on the basic differences between the two.

The biggest difference between condos and houses is that when you own a house you also own the plot of land that it is on. When you own a condo, you own the airspace occupied by said home, and perhaps part of a common area. A house will require lawn and structural maintenance that are solely the owners responsibility, while a condo will require maintenance to the outer structure that is split between the tenants.

Deciding which is better for you depends on many variables, starting with how much having a lawn matters, and whether or not you will be willing to invest on its upkeep.

Is renting out your property in your future plans? Then consider that condos will see tenants come and go more quickly. However, when it comes to selling, you might be get a better return on your investment when selling a house.

Do you prefer the privacy of your own property lot or the community of a condo? Communities are not a given in condominiums, but you sure will be seeing your neighbors whenever you use any of the common areas.

In the end, no one kind of property trumps the other. Instead, careful consideration of what your priorities and preferences are when it comes to your future home will guide you to making the right choice.

Published with permission from RISMedia.

So you’ve got new kitchen cabinets. Congratulations! But now what? For those wondering how to finish their brand-spanking-new cabinets, we run down the pros and cons of painting vs. staining”the two most popular finishing avenues. The kitchen is one of the most important factors in your homes value, so consider how the following information impacts your real estate investment.

Pros for paint
– It’s flawless. Regardless of the color you choose, painting your cabinets covers up any quirks or blemishes in the natural wood, which can often be magnified by staining.

– Your color choices are endless. When it comes to picking a paint, the world is your multi-colored oyster. Get crazy and really customize the look and feel of your cabinets.

– Paint sticks to lower quality materials. If your cabinets are not made of wood (think particle board), paint is your BFF. It sticks to these materials just as well as higher grade wood options, and no one but you will know the difference.

Cons for paint
– It looks more uniform. Remember those natural quirks we mentioned? Well you may not want to cover them up. If you’re looking for a more natural, country vibe that highlights those stunning features like grain and knots, opt for a stain over paint.

– It’s pricey. While not too expensive in the grand scheme, paint is more expensive than a stain, so if budget is a concern, take heed.

– Harder to touch up. Even if you can’t find an exact match for your cabinet color, when you’re working with stain, odds are you’ll have better luck blending touch-ups in stain than with picky paint.

Source: Houzz

Published with permission from RISMedia.

When it comes to getting your home sold, a positive first impression can make all the difference. Take a look at these four tips to help your home stand out from the competition.

Published with permission from RISMedia.

Homeowners insurance is supposed to cover catastrophes such as fires, hurricanes and a tree falling through the roof. But there are some much lesser problems that a typical insurance policy can cover.

Here are some of the surprising things covered by many home insurance policies. Check with your insurer first to see if youre covered for them:

Riot: Called a civil commotion by insurers, riots can include vandalism, fire and explosions, which are normally covered by home insurance. Having a state of emergency declared in your area because of rioting could make it easier to file a claim, as could a police report on damage to your home.

Volcano: If your home is in the path of an erupting volcano, your home is covered. Earthquake damage, however, isnt covered by most standard policies.

Dog bite: Up to $300,000 in medical care may be covered if your dog bites someone. Other claims, such as for pain and suffering in a civil lawsuit, may only be covered up to a certain amount or may require additional coverage.

Spoiled food: If a storm caused your power to go out and the food in your refrigerator is spoiled, your homeowners insurance should cover the cost of replacing the food. However, check if youll have to pay a deductible first and if its low enough to make filing a claim worthwhile.

Items stolen on vacation: Your belongings should be covered wherever you go by a homeowners policy, including on vacation under an off-premises provision. Had your laptop stolen in Lithuania? You should be covered. For more expensive items, such as a wedding ring, you may need to buy an additional rider to cover it.

Dorm theft: Just as your belongings are likely covered when youre on vacation, so are your childs things at college ” up to a point. A dorm room on campus may be covered by your homeowners policy, but off-campus housing may not be. The liability limits on a students belongings may be lower, so an expensive computer or bike may need to also be covered by renters insurance.

Gazebo: Your home is covered, and so is your entire property. This can include structures such as gazebos, storage sheds and patios. Tell your insurance company that you have such structures, and provide photos and other documentation such as work orders to show they exist and how much they cost.

Feel free to contact me for more real estate tips.

Published with permission from RISMedia.

Just as you want to put your best financial foot forward when applying for a mortgage to buy your first home, you also want to prepare your finances before refinancing a home loan.

A mortgage refi can pay for a kitchen or bathroom remodel, for example, or for something as simple as replacing a homes windows. A home equity line of credit or a home equity loan are two common ways to refinance, and preparing for the process can make the approval process smoother. You could even qualifyfor a lower interest rate on your home loan by improving your credit score.

Here are some things to do before applying for a mortgage refinance:

Check Your Credit Report
Federal law allows people to check their credit reports for free each year. Since there are three major credit bureaus”Experian, Equifax and TransUnion”consumers can check with each agency every four months for free.

Fix any errors you find, such as late payments that you have proof of paying on time. Eliminating any errors can improve your credit score and allow you to borrow more money at a lower interest rate.

Pay Down Debt and Save Cash
If your credit card balances are near your credit limits, pay the debt down so that its no more than 30 percent of your credit limit. Lenders dont like to see credit cards that are maxed out or close to it, and may consider you a credit risk if youre using most of your available credit.

Keep your credit card balances low for at least a few months before applying for a home loan refinance.

Also save as much money as you can in your savings account as a way to show that you can weather a financial storm such as a job loss or major medical cost. Having six months or more of expenses saved is a good goal.

Low LTV
If you owe more than 80 percent of your homes value, then you may be too high to qualify for a loan refi”or at least at a good interest rate.

A loan-to-value ratio, also called LTV ratio, is a lending risk assessment that was done before you applied for your original home loan. The more money you put toward a down payment, the lower the ratio and the lower risk you are considered to be. Buying mortgage insurance can help offset a high risk.

As part of a home loan refinance, a lender will order an appraisal of your homes value. Your real estate agent can help you prepare for this by giving you a rough estimate based on recent home sales in your area.

If you put down 20 percent toward the purchase price of your home, for example, then you owe 80 percent of its value, giving you an LTV of 80 percent. You could have more than 20 percent equity, however, if your homes value has risen. If home values have dropped in your neighborhood, then you may want to rethink refinancing for now.

Published with permission from RISMedia.