Five Things NOT to Do Before Refinancing or Buying Your Home

/in

Five Things NOT to Do Before Refinancing or Buying Your Home
One of things my clients appreciate about me is that I act as a resource for them to answer questions long before we start the mortgage application process. Many times I prevent obstacles from getting in the way of securing their mortgages. Here’s a list of five things NOT to do before refinancing or buying a home.1. Retire. Although this may be your ultimate goal, you’ll want to secure the loan before significantly reducing your income. The amount of money you’re currently making has a direct impact on how the bank looks at your ability to pay your mortgage.

2. Slow Your Income Stream. As I just mentioned, slowing your income stream could adversely affect the terms of the mortgage or refinance you’re seeking. Cutting back from full-time to part-time hours can hurt your chances.

3. Experience a Major Life Event. Sending your kids off to college can set you back thousands of dollars. Taking on payments for your child’s tuition may set off red flags with banks.

4. Start a New Job or Career. Financial institutions like consistent, steady income from their customers. New jobs, career changes and new business ventures are all considered risks in the eyes of the bank. If you’re self-employed, you’ll need to show income for two years’ work before the bank will even look at your application.

5. Move Out and Rent Out Your Property. You may have thought that making your home a rental property would be a plus, given the potential income from tenants. There’s a problem with that theory: Investment rates are higher with more restrictions on a rental property than if it were your primary residence.

I take a holistic approach when it comes to buying or refinancing your home. After all my years in the mortgage industry, I know I can save you time and money. If you’re considering a new mortgage, call me at 617-965-1236. I’ll be happy to answer any questions you may have.

November’s Home Value Improver

Stand Up to Standing Water

I’m a firm believer in keeping water where it belongs: in the sink, the pipes, the toilet, etc. When water ventures beyond these places, it can become a hazard in your home.

Standing water in your basement may seem like it’s not a big problem, but it has the potential to affect your health. As water seeps into floorboards and walls, it can cause mold. Left untreated, mold spores can reproduce and grow everywhere water is (or was). This can lead to certain sicknesses, generally limited to respiratory infections.

The other problem is mosquitos. These stinging insects breed in pools of standing water. Adult females lay their eggs in the water, where they incubate for five days and then hatch. Watch for water buildup this winter. If it sits in your basement until spring, the mosquitos will view it as a great big breeding ground for their blood-sucking offspring.

Water can find its way into your home from clogged gutters and snow melting from ice dams. Keep a watchful eye on any water congregating where it shouldn’t. By removing it quickly and thoroughly, you’ll avoid mold and mosquito problems from turning your dream home into a nightmare.

My Latest TV Interview; Ripple Effects of the Shutdown

/in

Ripple Effects on Mortgages Related to the Federal Government Shutdown
No matter which side of the political fence you’re on, you can’t argue that the housing market may be severely affected by the federal government shutdown.

At the center of the storm is the Patient Protection and Affordable Care Act (PPACA), also known as the Affordable Care Act or ObamaCare. No matter how you refer to it, this standoff is causing a ripple effect that could impact the purchase and refinance of your home.

While many predict the short-term effects to be minor due to a bounce-back period which typically follows a shutdown, your home-buying plans may be put on hold until the PPACA issue is resolved.

The longer-term effects could potentially make loans harder to qualify for, which could shut certain home buyers out of the market. In addition, in an unstable economy, falling home prices could push some mortgages back under water, which could effect the ability to refinance.

These, of course, are worst-case scenarios we hope won’t happen. The quicker the government goes back to work, the less the chance for major ripple effects.

Things seem to change from day-to-day during this crisis. For the latest information, please contact me at 617-965-1236. I’ll be glad to answer any of your questions and give you the advice you need to successfully secure your mortgage.

October’s Home Value Improver

Using the Whole Pumpkin

You’ve picked the perfect pumpkin from the patch for the ultimate Halloween jack-o-lantern. Your top-notch carving skills yield a scary ghost-face that will be the envy of all your neighbors.

But what about the rest of the pumpkin? Have you simply gutted the contents and kept the the outer part for your jack-o-lantern? If so, you’re wasting more than you think.

So what can you do with a bowl full of pumpkin insides? Plenty! Let’s start with the obvious and go from there.

1. Pumpkin pie. Here’s the traditional recipe for the ultimate seasonal dessert, from Martha Stewart.

2. Pumpkin bread. If you love to bake bread, Alton Brown’s recipe is a winner.

3. Pumpkin seeds. Skip the mixed nuts at your next party and try this quick and easy recipe for sweet and salty pumpkin seeds, courtesy of Real Simple magazine.

4. Pumpkin soup. Here’s Criesta Comerford’s special recipe from Oprah’s magazine. Ms. Comerford has been the executive chef for both the Bushes and the Obamas. Gee, I wonder if she’s working during the shutdown? Do the president and first lady find her to be an essential employee or can they just wing it with a few groceries they might have picked up at the local Safeway?

5. Pumpkin wine. Tired of typical red and white wines? Ready for a challenge? Make your own pumpkin wine from scratch. It can be done! All you need is a pumpkin, an acid-tester and a hydrometer. What kitchen doesn’t have those?

6. Pumpkin skin cream. All those years of carving your pumpkins and tossing the insides could have been spent rejuvenating your skin. According to the website, you can spread the leftovers on toast for a delicious snack. Seriously. Here’s how.

 

Can You Afford a Second Home?

/in

Can I Afford a Second Home?
A friend and I recently had a conversation about her buying a second home after she spent a relaxing week on the Cape. I thought about how many clients of mine have shown interest in purchasing a second home, but were unclear about the potential risks and rewards. Here are the key points to keep in mind:

Can I Afford It? As a current homeowner, you already understand that the cost of a home is more than just the price tag. You’ll need to factor in other expenses, like insurance and taxes, for example.

If you’re good with tools and plan to live there, then you’re fine. However, if this is a seasonal residence, you’ll need to figure out the costs involved in winterizing your home and perhaps hiring a local handyman to check on it from time to time, especially following harsh winter weather.

Will I Qualify? This is an important question, mainly because the requirements for buying a second home are more stringent. You won’t be able to rely on a government loan, so you’ll need a solid credit score along with the reserves to show you are a good candidate for a new mortgage.

Another Thing: The interest rate for a rental property is higher than the rate for a second home. When applying for the mortgage, the bank will only consider the rental income if you have a history of receiving rental income.

Confusing? It can be without the proper guidance. Don’t be discouraged. Second homes make for solid investments. If you have the money and want to further explore your options, give me a call at 617-965-1236.

September’s Home Value Improver

Spiders in My House: Good or Bad?

There are two types of people in the world: those who believe all bugs found in the home are the devil’s spawn and those who see a gigantic difference between a miserable, disgusting cockroach and a pretty little ladybug.

No matter which category you find yourself in, your opinion may change when it comes to spiders. Somewhere along the line we were told that spiders perform a very important function: They eliminate other insects. The non-ladybug kind, usually. They can trap and kill moths, mosquitos, ants, houseflies and more.

Fine, you say. They can cast a web in a corner of the garage and maybe, possibly, if I don’t think about it too much, I’ll allow one in the corner of the basement, somewhere near the dryer, where it’s mostly dark.

But if your basement and garage suddenly become free of creepy-crawlies, does that mean you’ll want ol’ spidey to set up shop in the kitchen pantry? How many webs is too much? What will the neighbors say?

Here’s something to consider: The bugs you see on occasion that scurry by from time to time are not the real problem. The spider only catches the occasional fly or beetle that walks into the wrong web at the wrong time.

The real problem–potentially, at least–are the the bugs you don’t see. Those can be roaches, termites, bedbugs and more. You’re better off calling an exterminator seasonally than betting everything on the little spider that moved in under the sink in the upstairs bathroom.

Send the local house spiders on their merry way. They can do a fine job keeping the insect population under control from a distance. Then call in a professional to inspect your home and take care of the extermination, if necessary.

 

Don’t Be a Victim of Bidding Wars

/in

The High Cost of Bidding Wars
We talk about leaving emotion out of the home buying process, but for many, that’s easier said than done. When people find their dream home, they get emotionally attached to it, even before their bid is approved. Emotions take over and sometimes they engage in bidding wars that significantly increase the price of the home. That’s the point where your dream home becomes something of a nightmare.It’s a tough predicament. You’ve identified the place you want to spend the foreseeable future with your family. In your head, you’re already running a film of wonderful family moments that have yet to happen. But for you, at this time, nothing can stop you from buying this house–including a rival bidder.

This is a huge investment. You know what you want to spend, but the other bidder has increased her bid. It’s over your budget limit, but you get creative and justify the extra cost and run some numbers in your head. Emotionally, you think you can swing it, but in actuality, you’ve created more debt than you had imagined.

You’ve won the bid, but in the end, you may have lost the war.

Did you know that your bank assesses your home’s value based on the the previous three months of similar home sales? When you engage in bidding wars and artificially inflate the cost, the bank will not factor the new cost into your loan. Therefore, you are responsible for potentially thousands of dollars you hadn’t intended to spend. This money is due to paid by you at the closing. Can you afford to fall deeper into debt after making quite possibly the biggest investment of your life?

Don’t be a casualty of the bidding wars. Sometimes all it takes is some sound advice from an experienced, objective mortgage professional–someone who won’t ever get caught up in the emotion of making such an important purchase. Call me at 617-965-1236 if you’re even considering purchasing a new home. I’ll give you all the critical information and advice you need to make the decision that works for your budget and your life.

August’s Home Value Improver

Late Summer Vacation Tips

More and more people are taking their vacations in the late summer. If you’re one of the many vacationers packing for a trip before Labor Day, here are a few tips to make sure you can enjoy a stress-free break from everyday life.

1. Make a List of Errands. You know that feeling you get just as you head to the hotel pool area when you realize you forgot to buy sunscreen? Make a list of errands you need to run and you’ll be better prepared.

2. Pay Bills. No one likes to come home to a house with no electricity. Paying your bills ahead of time will help you create a better spending budget for your trip and give you peace of mind knowing all your bills are current.

3. Hold the Mail. Did you know a call to your local post office will hold your mail while you’re away and your letter carrier will deliver everything upon your return. No need to bother the neighbors to check your mailbox. If you have a newspaper delivered, be sure to stop delivery while you’re away.

4. Clean Out the Fridge. Remember that delicious leftover salmon dinner you planned to reheat for lunch the next day? It’ll be black (or maybe green) by the time you get back, unless you toss it along with other perishable foods.

5. Who’s Watching Fido? People can be so consumed with getting out of town, they sometimes for get about their beloved pets. Make arrangements with a responsible person to make sure your pets are cared for. There are also many reputable dog-sitters and kenneling companies that can allow your pets to have a vacation of their own.

6. Clean Up. In the frenzy involved in packing for the parents and kids, your house may look like a mini tornado passed through. The last thing you’ll want to do when you return from a relaxing excursion is to clean up a messy house. Also, keep an eye on things that could catch fire. Clean out your lint traps, unplug appliances and shut down your computer.

6. Lock Up. It’s not just your front door that needs locking. Go through the house and check your windows as well as the bulkhead door leading to your basement. Knowing your home is properly secured will help you enjoy your vacation without the stress and worrying–and that’s what vacations are for!

Don’t Push the Panic Button

/in

Don’t Push the Panic Button!
Buying a new home is one of the biggest decisions you’ll make in your entire life. It’s a major investment with a 30-year commitment tied to it. So why are people pushing the panic button now that mortgage interest rates have increased? Blame it on a dangerous combination of media reporting and the average buyer’s lack of information. Your local news anchor may report, quite accurately, that rates have risen, in a voice that indicates that this may be the worst thing to happen since Kim and Kanye named their baby North West.

What they may not mention is that today’s rates remain historically low, and will continue to remain that way. FannieMae produces a monthly national housing survey, which indicated that many buyers are purchasing now or are planning to buy in the near future. According to Doug Duncan, senior vice president and chief economist at Fannie Mae: “The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy.”

Another reason for the panic is the fact that mortgage interest rates have been at all-time lows for quite a while and some may have forgotten how much more they would have paid in years past. Here’s a quick look at interest rates through the years:

1970s: 7-9%

1980s: as high as 18%

1990s: 7-9%

2000s: 7-8%

2010s: 3-4%

Aren’t you glad the 80s are over? Cabbage Patch Kids, Debbie Gibson and ultra-high interest rates? No, thank you. But seriously, if you have concerns about rising interest rates and feel pressured to buy now, give me a call before making a decision you’ll regret. I will answer all your questions and strategize a plan that makes sense for your individual needs and goals, without the distractions and unnecessary fear that may accompany the media fallout from a spike in interest rates.

So there you have it. Rates are still historically low. Call me at 617-965-1236 and get the facts you need to make a thoughtful decision. Now please step away from the panic button. There’s no need to push it.

July’s Home Value Improver

Dress Up Your Doorway

There’s a kind of magic in doorways. They’re the place where opportunity knocks. They symbolize hope, liberation and new beginnings. Doorways have been the focal point of several superstitions. Husbands carry their spouses though them for good luck. Horseshoes are hung on doors for the same reason. One tradition includes opening the front and back doors of the house at midnight on New Year’s Eve to let out the old energy and welcome in all the fresh possibilities of the new year. People adorn their doorways with flowers, plants, wreaths and Indian corn throughout the year. When it comes to improving curb appeal, it’s all about the doorway.

So what can you do to dress up your doorway? Here are a few tips that will make your door the focal point of your home’s exterior.

1. Paint. Is the paint on your door chipped, cracked or faded? A fresh coat of paint on your front door is a sign of a well-kept home. Use a traditional white for a clean, understated look. Want to go bright or bold? Pick an accent color from your interior decor and use that color to paint your door.

2. Doormat. Nothing is more inviting than a clean welcome mat. Toss out the old, faded, worn-out mat and replace it with one you’ll be proud to welcome your guests from as you invite them into your home.

3. Hardware. Replace your ordinary doorknob and knocker with beautiful decorative hardware. Visit your local home improvement store or pick up a vintage piece at a nearby flea market or antiques dealer.

4. Numbers. Are the numbers of your door’s address outdated? Try a clean, simple style, using a sans-serif font. Not sure what that is? Just check the font that’s used on your smartphone’s clock and use something similar.

5. Doorbell. Exposed wires and notes taped above that say “doorbell broken, please knock,” are signs it’s time for an upgrade. Choose one that matches your home’s general decor and consider one with a decorative plate.

Other ideas include adding planters, a shiny new mail slot or vintage mailbox, subtle lighting, an engraved nameplate and monogram letters. Creating a doorway that is distinctive and welcoming is a fun project that can transform the exterior of your home while increasing its value–all with minimal effort.

 

Mortgages for Self-Employed Borrowers

/in
The Challenges of Self-Employed Borrowers
George has a stellar credit rating, ample assets and a 30-year career. So why did banks turn him down when he applied for refinancing? Two dreaded words: self-employment.

The lending industry relies upon the predictable – predictable, steady income to pay predictable debts and supporting documentation that meets predictable criteria. Unfortunately, self-employment is anything but predictable. Incomes go up and down, expenses rise and fall, and savvy accounting often blurs the full income picture on tax returns.

In George’s case, he transitioned his B2B enterprise to keep pace with technological changes. During the transition, his income dipped as equipment expenses skyrocketed. All of a sudden, his tax returns no longer reflected an income stream that met criteria to refinance his mortgage.

After a few lenders turned George down, his financial consultant recommended Debbie. “Debbie really helped me by strategizing. She analyzed all my records, spoke to lenders and counseled me to wait until my 2012 tax return was in,” George explains.

Sure enough, a bump in income on George’s 2012 return did the trick. Three years after first applying for refinancing, George finally got his mortgage – but not without undergoing what Debbie calls a “financial colonoscopy”.

“Self-employed borrowers need to be prepared for unbelievable scrutiny,” warns Debbie. “I actually like the challenge of helping business owners like George work everything out.”

George responds that he appreciates Debbie’s “can do” approach to obtaining mortgages. “Debbie doesn’t dump everything in your lap. She does whatever it takes to get things done,” he says.

Before working with Debbie, George didn’t know that mortgage brokers existed. Now he has a deep appreciation for brokers like Debbie who go the extra mile for challenging clients without charging the borrower for services. “It costs you no more to use me than it does to go through a conventional lender, yet you get a partner to work with you throughout the whole lending process,” Debbie explains.

Want to know more? Please give Debbie a call at 617-965-1236 or email Debbie for information or help.

May’s Home Value Improver

Banish Indoor Bugs

Ants, fruit flies, hornets, mosquitoes – warm weather brings out the insects, both outside and in. What should you do if you discover an ant colony parading across the basement floor or a bug festival in your kitchen?

The Natural Resources Defense Council (NRDC) cautions against reaching for pesticides. Instead, seal any entryways such as holes in screens or gaps around floors or windows. Then, remove food sources by making sure that your house is clean and dry.

  • Wipe up spills immediately with soap and water.
  • Take out garbage daily and keep garbage cans clean of food residue.
  • Keep ripe fruit in the fridge.
  • Wash dishes daily, or at least submerge them in soapy water until you can get to them.
  • Make sure all food and beverage containers outside the fridge or freezer are tightly sealed.
  • Sweep and vacuum your floors regularly.
  • Keep bathroom and kitchen areas as dry as possible. Fix leaky faucets and don’t let standing water accumulate.
  • If you have a pet, comb it regularly with a flea comb and wash its bedding frequently. Be sure to vacuum floors, rugs and upholstery your pet comes in contact with regularly.

If you still have insects in the house, the NRDC recommends vacuuming for individual bugs or nests since bugs will usually suffocate in the bag. You may also lay flytraps, pheromone traps, light traps and other chemical-free traps.

If all else fails, try these low-risk pesticide techniques from the NRDC:

  • Dust boric acid on cracks and crevices, which slowly poisons crawling insects like ants, cockroaches and silverfish, but is far less toxic to humans and other mammals.
  • Use tamper-resistant bait boxes, an effective and safer choice than sprays, powders or pellets, which all spread pesticide residues. Look for one that uses a nonvolatile chemical, like boric acid, and make sure to keep bait stations out of the reach of children.
  • Try insecticidal or fatty-acid soaps, which kill soft-bodied insects like caterpillars, fleas and mites on contact, and are virtually harmless to humans and mammals unless they’re ingested.
  • Hire a professional trained in Integrated Pest Management (IPM), which uses physical controls and low-toxicity products to manage pest problems.

 

Is That House Worth It?

/in
Buyer Beware
A recent article in The Boston Globe chronicled the bidding battles in the greater Boston area as too many buyers seek to buy too few homes. The Globe story tells of buyers offering tens of thousands of dollars over asking price, waiving home inspections, agreeing to flexible closing dates and making other major concessions to buy a home.In the pursuit of the American dream, prospective buyers are taking on risks that could turn into a nightmare. Consider these scenarios:

  • You bid more than the asking price – If the appraisal comes in lower than what you are prepared to pay, you will be responsible for paying cash to come up with the difference.
  • You waive the home inspection – If you discover that the roof leaks, there is termite damage or other major repairs are needed, it’s your problem. You paid full price (or more) for the home, without any ability to discount the price to cover needed repairs.
  • You waive the mortgage contingency – A mortgage contingency clause means that the purchase of the home depends upon your ability to get a mortgage within a specified time period. If you don’t obtain a mortgage within that period, you can exercise your option to cancel the purchase and get your deposit back. By waiving this contingency, you relinquish your right to get your money back if financing falls through.

In a competitive bidding situation, it can be easy to get carried away. Sometimes the best thing to do is to walk away instead. When evaluating your options, take a level-headed approach and consider:

  • Your budget – Can you afford making a higher bid and/or potentially paying out-of-pocket for needed repairs or the difference between the sales and appraisal price?
  • Market value – Is the home really worth the extra you may pay in a bidding war? Don’t let your emotions overrule long-term investment considerations. Will you be able to recoup the money if or when you sell the home?
  • How difficult will it be to find another home that meets your criteria? – Would you be happy living in several different areas or do you have your heart set on a particular community or even a particular street? Evaluate how important this specific home is to you. If another house would do, then walk away.

Want to know more? Please give me a call at 617-965-1236 or email me for information or help.

April’s Home Value Improver

Quick Mood Boost

After last week’s events, we all could use a pick-me-up. If you can’t get outside to enjoy some sunshine or a brisk walk, bring the outside in! Studies have shown that indoor plants both improve your mood and purify the air.

According to an article in the Journal of Environmental Psychology, plants can boost mood levels, reduce fatigue, improve reaction time, lower stress, and even boost pain tolerance. A study published in 2008 even found that hospital patients recover faster and use fewer painkillers when a live plant is in the room.

Furthermore, NASA found that plants reduce airborne bacteria by 50 to 60 percent and researchers at Virginia Tech discovered that houseplants reduce indoor dust by 20 percent!

While cut flowers may not have the air purifying properties of live ones, separate studies have found that people are happier and more energetic after looking at a flower bouquet first thing in the morning. The fragrance of both live and cut flowers can help reduce stress and feelings of anxiety.

Now is the perfect time of year to place some herbs on your kitchen windowsill or pick up a big bunch of daffodils for the dining room table! Just keep in mind the power of color – reds, orange and yellow create a vibrant, energetic mood while blues and greens are more calming.

 

New Challenge for Jumbo Loans

/in
Will It Be Harder to Get a Jumbo Loan?
The high price of Massachusetts real estate means that it is not unusual for buyers to turn to jumbo mortgages for financing. Jumbo mortgages are loans that are larger than the “conforming limit” – the maximum loan amount that qualifies for government backing through Freddie Mac and Fannie Mae.The conforming limit varies by county. In many areas of the country, jumbo mortgages are any loans in excess of $417,000. In higher priced markets, the conforming limit goes up. For example, in Middlesex County the limit is about $465,000.

Jumbo mortgages are more expensive than conforming ones. Rates are typically 1/2-3/4 a percentage point more than on conventional fixed rate loans. The higher rate compensates lenders for taking on greater risk. Since jumbo loans typically can’t be sold on the secondary market, lenders usually keep them in their own portfolios.

The jumbo market dried up in the recession but had started to regain energy. Now there is a concern that the new qualified mortgage rules issued by the Consumer Financial Protection Bureau could deal the jumbo market another blow.

The new rules prevent lenders from issuing loans to borrowers who can’t afford them through some stringent requirements for “qualified mortgages”. Lenders of qualified mortgages are protected from lawsuits filed by borrowers. The Wall Street Journal reports that two key criteria mean that some jumbo mortgages won’t be considered qualified:

  • Interest-only loans aren’t considered qualified, yet about 14% of jumbo loans start out as interest-only
  • A borrower’s total monthly debt payments may not exceed 43% of his or her income on a qualified mortgage. This restriction would exclude about 15% of jumbo loans. Often jumbo borrowers have considerable assets, but steady income that is hard to document because they own businesses or are self-employed.

If a jumbo mortgage does not qualify under the Consumer Financial Protection rules, a lender will not receive immunity from lawsuits. The big question is whether they will decide the risk is too great and tighten the reins on the jumbo market. The impact may not be felt in today’s cautious lending environment, but the new rules could affect the market in the future.

Want to know more? Please give me a call at 617-965-1236 oremail me for information or help.

March’s Home Value Improver

Quick Home Makeovers

After a tough winter, it’s time to celebrate spring’s arrival!House Beautiful offers these fast and easy spring makeover ideas for your home:

Paint Your Front Door – Welcome the season by refreshing your front door with a new color and a seasonal wreath.

Create a Colorful Entry – Clear the clutter and greet guests with eye-catching storage that lifts the spirits.

Reorganize Bookshelves – Create visual interest by sorting books by color or arranging them artfully in both vertical and horizontal stacks.

Style your Closet – Take advantage of the change of season to give your closet a facelift. Wallpaper the inside for a fun change of pace and arrange your spring clothes by color for an artistic touch.

Paint the Ceiling – Who says a ceiling has to be white? Try painting it a very pale blue or gray to make you feel as if you are looking up into the sky.

 

Refinancing in Cautious Times

/in
Customer Story: Refinancing in a Cautious Climate
John had a good salary, perfect payment record, he wasn’t underwater on his mortgage – but he couldn’t get a lender to refinance his home. John needed to refinance to remove his ex-wife from the mortgage as a term of his recent divorce. Yet his new alimony obligation was part of the reason why three lenders had turned him down.

“I work for salary plus bonuses. Lenders couldn’t fit my bonuses into their formula so they didn’t count them as income,” John explains.

John turned to Westchester Mortgage for help. We located a lender who could count the bonuses – and then the real work began.

First, John needed to provide three years worth of complete financial records. Then his 1830s home tripped up appraisers and resulted in falsely low appraisals. Next, the lender found John’s name in a deed for undevelopable land in Connecticut that he had received from his father. That discovery led to a round of title searches and reviews of tax records. Finally, so much time had passed since the beginning of the process that the lender pulled John’s credit report again. The report reflected an unpaid gas bill for a statement that John had never received. John paid the bill and was then was required to jump through hoops to provide proof of payment.”

From start to finish, the process took 4 ½ months. “Debbiereally earned her money on this one,” John says. He adds: “My advice is to batten down the hatches unless you have a very simple financial situation. It’s going to be a long, drawn-out process.”

February’s Home Value Improver

Prepare Your Home for Snow

Let’s keep our fingers crossed that we don’t experience another snowstorm like the blizzard earlier this month. If we do, are you prepared? The Institute for Business and Home Safety (IBHS) says that heavy snow accumulation is the biggest threat, both as it builds up and as it melts.

IBHS recommends that every homeowner take the following steps:

  • Watch for snow accumulation on the leeward (downwind) side of a higher-level roof, where blowing snow will collect. For safe removal that won’t endanger you or damage your roof, consult a roofing contractor for a referral.
  • Remove snow from basement stairwells, window wells and all walls. Melting snow can lead to water damage and moisture intrusion.
  • Keep your attic well ventilated to maintain a temperature close to that of the outdoors to minimize the risk of ice dams forming. A warm attic melts snow on the roof, causing water to run down and refreeze at the roof’s edge, where it’s much cooler. If ice builds up and blocks water from draining, water is forced under the roof covering and into your attic or down the inside walls of your house.

 

Tips for Getting the Best Mortgage Rates

/in
January Fiscal Fitness Tips
Are you thinking of refinancing or buying a new home in 2013? January is the perfect time to plan ahead to maximize your chances of getting the best possible mortgage terms. Set aside time at the start of the year to: Review
Take a good look at your finances. Is your debt under control? Is your job secure? Do you have a strong credit rating? How much equity do you have in your home? To qualify for the best rate, you’ll need to have a rock-solid financial foundation.Revise
If you recently bought a car, got a new credit card, or had your credit report pulled for another reason, your credit score may dip. To qualify for the best rates, change your plans so you are applying for a new mortgage when there is less activity on your credit report. Similarly, the value of homes typically dips during the winter when the market is quieter. Try to avoid refinancing early in the spring when appraisals will be based on sales of comparable homes during the winter months. Be prepared to revise your timeline to qualify for the best rates!

Revisit
If you refinanced recently or explored refinancing within the past six months, you may feel that you don’t need to take action now. You may be all set, but it is a good idea to revisit rates and your qualifications annually to make sure that a better option is not available.

If you take a little time in the beginning of the year to review, revise and revisit your mortgage financing, you can increase your ability to qualify for great terms and save thousands of dollars over the life of the loan.

Want to know more? Please give me a call at 617-965-1236 or email me for information or help.

January’s Home Value Improver

Quick Tips for Decluttering

Are you struggling with the winter blahs? Scientists say that getting rid of clutter will help you feel more focused and energized. A Princeton University study found that a cluttered environment even limits your brain’s ability to process information.

Here are five quick tips to help you get rid of clutter:

1. Take photos: We are so accustomed to our environments that sometimes it is hard to see the clutter. Take photos of rooms and imagine you are viewing them in a magazine. You will see your rooms in new ways!

2. Everything in its place: Everything that you want to keep should have an assigned spot. Start by picking up five things and finding good places for them. Train yourself to always put those items back in their assigned places. Once you have mastered the first five, try it with five more items, and so on.

3. The hangar trick: This idea originated for clothes but, with adaptation, could be used for everything. Hang all your clothes with hangars pointing the same way. When you wear an item, return it to the closet with the hangar pointing the opposite direction. At the end of a season, discard any clothes that have not been worn.

4. Set a time limit: Tackle one room or closet at a time. Grab a trash bag or box, set a timer for 30 minutes and try to fill the bag or box within that time. Anything you haven’t worn, used or enjoyed within the past year is fair game to be given away.

5. Play mind games: Sometimes we have a hard time giving things away because we think we will use the item or that we like it more than we really do. A columnist for Psychology Today says to use your imagination to overcome roadblocks. Find out how much a similar item costs on ebay or Craigslist. Would you pay that much to own it? If not, get rid of it.