Your Preapproved. Now What?

You have decided to purchase a home and have gotten pre-approved for a mortgage.  Now what?  Of course, you look for the perfect home within your budget, but what else.  Buyer beware, things that you do now could actually affect whether you get the final approval for your loan.   First off, do not apply for any new credit during this time period because this could affect your credit score rating, thus changing the possible interest rate you qualify for on the mortgage.  Do not make any large credit purchases, such as furniture or appliances, or cosign on any loans.  Any large purchases made with credit  or cosigning for someone could affect your debt-to-income ratio.  If you can avoid it at all, do not change jobs after applying for a mortgage loan, as employment and salary verification could delay the whole process.  Most importantly, do not ignore any lender requests.  If your mortgage lender recommends you to do something or requests information, you need to act quickly and get things done or returned to them as soon as possible. 

It also goes without saying that there are things you need to do in order to help the loan process along.  Do stay current on all of your existing accounts.  A preapproval is a snapshot of your finances at one particular time, and any deviation in that picture could delay the process.  If you receive any money other than the usual monthly deposits, keep a paper trail.  Whether it is a gift, an inheritance from a relative, or a bonus from work, make sure that you document everything and let your lender know.  And lastly, do let your lender know if you are asking for seller concessions, such as help with closing costs. All these things are  factored into the final loan approval.  So, have fun shopping for the perfect home, but keep in mind the do’s and don'ts so that loan approval doesn't disappear. 

Questions to ask before Hiring a Contractor

Looking for a contractor to do some work but you’re not sure where to start.? It is always a good idea to ask your friends for referrals.  If they were happy with the work that the contractor did, chances are you will be happy too.  But don’t be afraid to call a couple more contractors for interviews and quotes.  During the interview, make sure you let them know they are competing for the business so their quote will need to be competitive.  But what should you ask them?  Here are some ideas:

• How long have you been a contractor?
• How many jobs have you completed similar to this one?
• Are you licensed and bonded?
• Do you guarantee your workmanship in writing?
• Can you provide references?
• Will you pull the required permits? 
•  Will you need access to inside the house and if so, who else will be in my house?

 

Never pay the contractor the full amount up front.  Most contractors can cover material cost until the job is finished, unless it is a really large job.  Even with a large job, pay the contractor for material when it is required, this should all be on the job schedule.  Don’t be afraid to inspect his/her work and ask questions during the job.  All professional contractors will provide you with a written quote.  Ask that the timeline of the job be on the quote.  Don’t be afraid to ask questions.  It is better to be happy with the job when it is finished rather than wishing you had chosen a different contractor.  Happy hunting!

I Do, I Do, I Do, I Do, I Do

           

        The ring was bought, the question asked, and the invitations went out.  Many years ago, when I got married, my spouse and I did what most couples did and registered for gifts at the local department store.  And while, we did receive a few of the items from our list, what we mostly got were checks and cash.  While I appreciated the beautifully wrapped boxes, the small white envelopes really helped us more.  We were just starting out and even though between us, we had many of the basic essentials for the home, like a microwave, sheets and towels.  What we really needed more were the big-ticket items like furniture and paint for the walls.  A toaster's great, but you can’t sit on it.  Today’s brides and grooms have much more options than we did when it comes to registries, and it can really help them in the home front and not just in the home section of the department store. 

 

                      This day and age, 75% of couples that are getting married live together already.  This means they already have the household items that we would have registered for back in the day.   The savvy couples of today forego the traditional registry and now have several alternative choices.   If a couple is need of a home they can choose to register for funds for a down payment.  For those that already own a home, they can register for funds for a home improvement project, like a new roof, or room renovation.  Whatever the bride and groom need, there is a registry out there that will meet their needs.  For us, maybe a vow renewal and a second honeymoon registry.  Just saying. 

 

HOA’s, Taxes, and Mello-roos, Oh My!

I have said this before, you have found the perfect house and you are ready to make an offer.  Sometimes finding the perfect house is the easy part of the purchasing a home.  It is easy to get caught up in the square footage, flow, and floor plan, without really looking into the specifics of how much the house is going to cost you.  Sure, you have done all the calculations as to how much your monthly mortgage payment will be and have even figured in the PMI.  But, what about all the other costs that are associated with home ownership and when is a house just too much money than what you can afford?  When purchasing a home you need to look at the big picture. 

There are many additional expenses associated with home ownership and these expenses need to be included when deciding which home will work for you.  On top of the mortgage, you will need to consider how much you will pay in property taxes a year, so don't forget to ask your lender if the property taxes are included in the estimated monthly payment.  Something else to consider is whether there are special taxes assessed to the particular neighborhood the house is located, called mello-roos.  Or if the home you are thinking about buying is part of a Home Owners’ Association, there may be dues and fees assessed to the property.  What about the cost of utilities for the property or what happens when something breaks down and needs repairs?  Make sure you get one year home warranty for the unexpected surprises. The big picture can be a little scary, but with proper planning and doing your homework, you can find the home that is long term and just right for you and your wallet. 

The Kamikaze House Guests

The kids are back in school and fall is just around the corner.  The tomatoes are ripe, the zucchini is huge, and the last bit of heat has spread throughout the county.  It is a wonderful time of the year and I would love to spend as much time as I can outside.  That is until I become the buffet entrée to all of the mosquitoes, ants, flies, etc. I am not squeamish about the bugs, I am just sick of getting dive bombed by every little insect, every single time I step one foot outside of my house.  I don’t know about you, but I seem to attract every insect around and they seem to follow me everywhere, including into my house.  What I need is a way to bug-proof my home.

There are many ways that you can keep those nasty critters at bay, and with a little preplanning and hard work, you will be able to make your home a bug free zone.  First and foremost, you need to seal you your doors and windows.  Weather-stripping, door-seal kits, and a threshold will go a long way to keeping the little buggers out.  Making sure your screens are free of holes and tears also helps.  Keeping your yard well maintained, and eliminating areas where water can collect in pools, helps to minimize the mosquito population so the buffet will move onto to next house.  Also big piles of leaves or cut grass are a natural breeding ground for any number of insects, so removing the debris will also cut down any possible infestations.  Sealing any cracks on the outside of your home or anywhere wires or pipes enter your home, helps to close many an entry point for numerous bugs.  One of the best ways to get rid of unwanted pests is to promote natural predators, such as birds and bats.  Building bird or bat houses are great DIY projects, and they help to maintain insect population.  Sure, I have Truly Nolan on my speed dial, but by taking a few of these preventative steps, I don’t always have to call them. 

Money Down the Drain

            With utility prices soaring and household expenses rising, the mighty dollar just does not stretch as far as it used to and I find myself endlessly trying to save as many of them as possible. Yes, I have been the one who follows everyone in the house making sure the lights are turned off and the refrigerator door is closed.  Yes, I have pounded that door telling my son that he has been in the shower long enough.  And sure, I can shop sales and clip coupons, but that only goes so far. What I really need to do is take stock of ways that I can conserve energy in my home in order to keep more of those dollars in my pocket. 

            These days, there are so many simple options for homeowners to save energy as well as money.   By insulating my water heater and lowering the temperature to 120 degrees, I could lower my water heating bills by 4 to 10 percent.  Installing a low-flow showerhead can reduce water consumption from the standard 8 gallons a minute to 1 to 2 gallons per minute as well as reduce the amount of energy used to heat the water.  Changing from incandescent bulbs to compact florescent lamps, as well as installing a programmable thermostat will also help to lower my energy bills. Washing laundry in cold water instead of hot, as well as only doing it when I have a full load can save me a bundle.  These are just a few of the many ways within my home, that I can easily save energy, water, and ultimately money.