Buying Real Estate for the First Time

Buying real estate for the first time can be an exciting point in your life.  Most people dream of what their first home will look like and are anxious when the time finally comes.  However, there are a few things you want to take care of prior to buying your first home.

1. Know your credit
The first thing a lender is going to look at is your credit and FICO score.  Your FICO score will be within the range of 400 to 850 with 850 being the high end.  You want your FICO score to be as high as possible.  Take the time to attain a credit report and find out exactly what your score is.

2. Know your finances
As soon as you know your credit score, the next step to buying real estate is knowing your finances.  You are going to find that the down-payment to purchasing a home can be quite a huge hit.  Just keep in mind that there are many different loans/mortgages out there that offer low down-payment options for you.  But you do not want to get into a home you cannot afford.

3. Get pre-approved
When you meet with a mortgage broker or banker, you want to ask them to pre-approve you.  Pre-approval is an underwriting of your file and will help you identify how much you can actually spend on a house.  You will have to provide your income documentation, credit and many other things in order to underwrite your file.

4. Down-payment assistance programs
Most people are not going to be able to pay for the entire home upfront and may not even be able to afford the down-payment.  As you meet with your mortgage broker or banker, have them look at down payment assistance programs for you.  Having them look for you will help you find what programs are available and if you qualify for them.

5. First-time home buyer classes
When buying real estate for the first time, look into first-time home buyer classes.  You will find that many lenders and realtors offer home buyer education classes.  This will help you learn about applying for a loan, working with a realtor, bargaining, making an offer, and going to closing.  The more you know about the overall process the smoother it will go for you.
Buying your first home is a huge step.  While it can be a bit overwhelming if you are unprepared, there are classes and programs that can help smooth the process.  Keep in mind the five steps in this article as you look into buying real estate for the first time.

If you're looking for a home in the lake area please contact the Spouses Selling Houses team. Until next time. Ebbie :)!

Heating and Cooling Your Home for Less

 

When you think about heating and cooling your home, do you think about energy efficiency? The more efficient heating and cooling systems are, the less they cost to run. That means your utility bills can be lower. Energy efficiency is good for the environment, too. Before you invest in a new system, ask about the EnergyGuide label – it lets you know how energy efficient a model is compared to others like it. Products that meet certain energy efficiency criteria will have the Energy Star logo. Want to save energy but not in the market for a new system? Consider a professional or do-it-yourself home energy assessment, which can show you how specific fixes – like sealing air leaks or beefing up insulation – could help you save energy.

Think "Efficiency"

More than half of the energy use in a typical home goes toward heating and cooling it, according to the U.S. Department of Energy (DOE). While there's plenty to consider when you look at new heating and cooling systems – the latest options, the cost to buy them, and your short- and long-term needs – it's also important to look at how much energy they use and cost to operate.
By choosing the most energy-efficient equipment that meets your needs, you may be able to spend less money to heat and cool your home. Using less energy is good for the environment, too; it can reduce air pollution and help conserve natural resources.

Here's how to tell how efficient a system is:

Once you know which systems could work for you, here's how you find out about the energy efficiency of specific models:

• The EnergyGuide label. Anyone selling heating and cooling systems – central air conditioners, furnaces, boilers, and heat pumps – has to let you know about a product's energy use before you buy it. Manufacturers provide that information on a product's EnergyGuide label. But depending on how you shop, you may not see the actual product and label, so the information might be on a website, a fact sheet, a brochure, or a directory. If they don't point the information out, ask.

For more on the EnergyGuide label, required by the Appliance Labeling Rule, which is enforced by the FTC, read Energy Guidance: Appliance Shopping With the EnergyGuide Label. EnergyGuide labels let you know how energy efficient a model is compared to others like it.

• The Energy Star logo. The logo means the product meets certain energy efficiency criteria set by the Environmental Protection Agency and DOE. Learn more and look up specific products at energystar.gov.

How Else Can I Save on Energy?

Being an energy-smart consumer means getting the most from the energy you use:

Do a home energy assessment.

A home energy assessment is a careful look at how efficient your heating and cooling systems are and where your home is wasting energy – say, through air leaks or under-insulated attics and ducts. Your utility company may offer free or low-cost energy assessments, or it may recommend a local company or organization to do them. Check with your state or local government energy or weatherization office for recommendations, or visit energysavers.gov for more resources.

• A professional assessment with special equipment like blower doors and infrared cameras might cost several hundred dollars. Before you choose a company, be sure to get several references, and check the company record with your local consumer protection agency and the Better Business Bureau (BBB). Make sure the auditor uses a calibrated blower door and does thermographic inspections, or else contracts with another company to do them. Expect recommendations for specific fixes and improvements you can make.
• A do-it-yourself assessment is an option if your budget doesn't allow for a professional. For more on how to do it, visit DOE's Office of Energy Efficiency and Renewable Energy (EERE), or use the online tool at hes.lbl.gov.

Seal air leaks and insulate:

• Seal air leaks around windows, doors, and places where pipes and wires come through walls. Check existing caulking and weatherstripping for gaps or cracks.
• Check ducts for holes and gaps where sections have separated and air may be leaking. You can seal some leaks yourself with mastic sealant or metal tape (don't use duct tape). Hiring a professional to repair leaky ducts can be a good investment.
• Bring your insulation up to DOE-recommended levels wherever your energy assessment shows it's needed.

If your home has very old or inefficient windows, it might be more cost effective to replace them. Learn more at energysavers.gov/your_home.

Look into special energy efficiency offers.

Ask your local utility or system salesperson about cash rebates, low-interest loans, tax breaks, or other incentives for buying energy-efficient products, and how you can qualify. You can learn about tax credits and incentives at energysavers.gov.

Don't overlook the small stuff.

The savings might be small, but they add up. Other energy-saving ideas include:

• Lowering your thermostat in winter and bumping it up in summer before you go to bed or head out for the day, or get a programmable thermostat to do it automatically.
• Checking filters for forced-air furnaces, heat pumps, or air conditioners as recommended to see if they need to be cleaned or replaced, and checking that fireplace dampers are closed when you don't have a fire going.
• Considering a budget-billing program, if your utility or oil company offers one. While you won't actually pay less, a budget-billing plan spreads your costs over the whole year, protecting your budget from seasonal spikes. If you're on a fixed income or have trouble paying your utility bills, contact your utility company. They, or your state or local government, may have energy assistance plans.

If you use heating oil, consider shopping around to make sure you're getting a good price. Research a company and its service before you sign a contract. If you live where you can choose your natural gas provider, shop for a good price on gas.

Don't get burned by "energy-saving" products and services.

Be skeptical of gadgets and products that promise drastic reductions in home cooling costs or extreme energy savings. Make sure any product claims can be verified by an independent source you trust. Resist high-pressure door-to-door sales calls for furnaces, windows, and other home improvement products. For more on finding a contractor who's licensed and reputable, read Home Sweet Home Improvement. Remember that the Cooling-Off Rule gives you three business days to cancel a contract if you sign it in your home or at a location other than the contractor's permanent place of business.

If in the market for a new lake home, or if you're looking to seel your existing lake home, please contact the Spouses Selling Houses team. Until next time! Ebbie :)

Home Inspection Tip

A home inspection is important whether you're buying or selling a home. Where does radon testing fit into the picture?

Let's look first at considerations from a home seller's perspective. If your inspector or another qualified professional has already tested your home for radon, the buyer wants assurance the testing was done correctly. She may ask that testing be redone if certain conditions aren't met.

Did testing comply with the EPA radon checklist or your state's protocol? Was testing done within the past two years? Have you made any renovations on your home since testing was done? Does your prospective buyer want to live in a basement or level lower than where testing was done?

She may also ask for a new test if your state or local government requires the disclosure of radon information to buyers and that disclosure hasn't been made. If you haven't yet had your home tested for radon, have it done as soon as possible. Test in the lowest level of the home that can be regularly occupied. Test in an area such as a basement or playroom area if that area could be used by your buyer.
If you do the radon test yourself, carefully follow the testing protocol for your area or EPA's Radon Testing Checklist. If you hire a contractor to test your home, you'll protect yourself by hiring a qualified individual or company.

How do you find a qualified professional to do the testing? Ask your home inspector. Also, your state should have an office that deals with radon issues. They may be able to provide you with a list of testers in your area. Many states require radon professionals to be licensed, certified, or registered.
If your state doesn't regulate radon related services, ask your home inspector or a reliable contractor if he holds a license, or a proficiency or certification credential. Has he completed training in measuring radon and properly dealing with radon issues? You may also want to contact the American Society of Home Inspectors, the National Association of Home Inspectors, or the International Association of Certified Home Inspectors.

Let's look at the other side of the coin. What if you're buying a home? The EPA says if you are thinking of buying a home, you can choose to accept an earlier test result from the seller. Or you can ask the seller for a new test to be done by a qualified radon tester. Before you accept the seller's test results, ask a few questions. What did previous tests show? Who did the actual testing? Where in the home was the previous testing done? Was it in the level in which you plan to live? Have any changes been made to the home since it was tested? For example, have there been any alterations to the heating and cooling systems?

If you accept the seller's test results, be sure the test complied with the EPA checklist or relevant state protocols. If you think a new test is needed, discuss it with the seller as soon as possible. If you decide to use a qualified radon tester to have it retested yourself, contact your state radon office for a copy of their approved list of radon testing individuals and companies.

If the seller hasn't had the home tested, ask that it be done. Consider including radon testing provisions in the contract. Note where in the home the testing will be done and who will do the testing. Also note the type of test to be done and when it will be done. How will the seller and buyer share the test results? Who pays for the cost of testing?

You'll want to be sure radon testing is done on the level you intend to occupy, whether it's the first floor or basement area. If you decide to finish or renovate an unfinished area after you buy the home, a radon test should be taken before starting the project and again after the project is finished. Generally, it's less expensive to install a radon-reduction system before (or during) renovations rather than afterward. Of course if you are in the market for a new lake home please call the Spouses Selling Houses team. Until next time. Ebbie:)

Hows the Market Report

Here is this month's "Hows the Market" report from Ebbie

 

Signs of Recovery Are Many

The various small businesses that drive the country's housing market are reporting signs that the industry may be making a real and sustained comeback.

At the start of this year's spring selling season, home builders and real estate professionals alike expressed optimism about the growing number of prospective buyers showing up at open houses and inquiring about current house listings. It now appears that interest has translated into sales in many markets.

Mark Prather, whose real estate agency, ERA Buy America Real Estate Services is on the border of Los Angeles and Orange counties, states, "We had a terrific March, better April, and May is going to be the best closing month since 2006."

Other success stories are being reported across the nation, as business is being driven by pent-up demand. Many people had put off buying a home since prior to the recession, and prices are lower after plummeting during the housing crisis. In addition, rising rents are making buying more attractive, and mortgage rates are at record lows.  The National Association of Realtors states that more than 1.3 million previously occupied homes were sold from January through April—a 7 percent increase from more than 1.2 million a year ago.

If now is the time for your new lake home, or if you wish to list your home for sale, please call the Spouses Selling Houses. Until next time! Ebbie :)

Be Prepared For Any Home Emergency

Sometimes disaster strikes, despite your best efforts to prevent it. And that means you should always be ready for the unexpected.
The right emergency gear will help you protect your home and family, as well as deal with unpleasant realities like a post-storm power outage or broken windows.

Here are the most critical tools and products to have on hand when things go wrong.

Essential detection and safety devices

Throughout the house
Place wireless water alarms under sinks, behind the fridge, anywhere that water would pool if there's a leak -- they'll sound off at the slightest hint of moisture.

Keep a fire extinguisher on every floor of your home, and an extra one in the kitchen, where the majority of fires start (some insurance policies will give you a discount on your premium for having them). Get multipurpose A:B:C extinguishers that douse flames from three types of fires: ordinary combustibles, flammable liquids, and electrical. Opt for a five-pound fire extinguisher, which is light enough for most people to use easily. Check the pressure gauges periodically and have the extinguishers recharged when the pressure drops.

Supplement hard-wired smoke detectors (if you have them) with at least one battery-powered model per floor, especially in the kitchen and near bedrooms. Go with a model with a sealed-in, 10-year lithium battery to spare you frequent battery replacement.


Danger zones: Common threats to your home
For the best protection, opt for separate carbon monoxide alarms instead of combination smoke/CO detectors. Place one on every level of the home and outside each bedroom or sleeping area so that occupants will wake up if it goes off at night. Plug-in versions with battery backups are convenient and discreet.

Basement, laundry, and mechanical room
A sump pump alarm has a sensor wire and probe that detect rapidly rising water levels, tipping you off to a potential flood. Reliance Controls sump pump alarm, $15; homedepot.com
An automatic shutoff valve for your water heater cuts off the supply to the device as soon as it senses a leak of any kind.

Save big on homeowners insurance

If you forget to turn off the water supply to your washing machine when you're finished sudsing your duds, then this is the gizmo for you: a switch that automatically opens the valve as soon as you turn the machine on, and then closes it when the rinse cycle is over.

Upstairs bedrooms
Place sturdy escape ladders in each bedroom near a window. Practice setting them up in case you have to do it quickly.

Must-have tools for your emergency kit
Collect all your gear in a waterproof plastic tub and stow it in an easy-to-access spot in your house.
1. Duct tape. Use it for on-the-fly repairs and temporary fixes.
2. Blanket. Mylar is warm and lightweight, and folds up small.
3. Multitool. Get one with a pair of pliers and a can opener.
4. Radio/phone charger. A hand crank will allow you to juice up the battery.
5. Work gloves. Leather grips protect your mitts during poststorm cleanup.
6. Nylon rope. Use it to secure heavy outdoor furniture or tie down a flapping door.
7. Lantern. A battery-operated model is safer than candles.

And add these multitaskers:
8. Fishing line. Use it wherever rope is too thick to get the job done.
9. Vinyl tablecloth. Lay it down to create a clean zone in any area.
10. Baby wipes. They'll remove grime from your hands and practically any surface.
Make sure to include first-aid supplies, three days' worth of bottled water and nonperishable food, and a list of important phone numbers.

We hope you always find our blog information helpful. If you're looking to buy or sell a home at the Lake of the Ozarks, please contact the Spouses Selling Houses team. Until next time! Ebbie :)

Mortgage Interest Rate Report

Long-term mortgage interest rates stayed below 4 percent for another month in April and close to historical lows, according to data from mortgage finance company Freddie Mac, as mixed economic data kept them from rising.

April 5

During the first week of the month, the average rate on a 30-year fixed rate mortgage (FRM) slipped down to 3.98 percent, excluding fees, from 3.99 percent the week before. The average rate on a 15-year FRM dropped to 3.21 percent from 3.23 percent and the one-year adjustable rate mortgage (ARM) was unchanged at 2.78 percent.

April 12

The next week, rates took a dramatic dive, with the 30-year FRM average plunging to 3.88 percent and the 15-year rate falling to 3.11 percent, a new all-time record low. The one-year ARM inched up to 2.80 percent however. Freddie Mac vice president and chief economist Frank Nothaft blamed "a weaker than expected employment report for March" for the drop in rates.

April 19

Rates moved up slightly in the third week "amid signs that inflation remains in check," said Nothaft. The average rate on a 30-year FRM rose to 3.90 percent and the 15-year FRM increased to 3.13 percent. The one-year ARM also rose slightly to 2.81 percent.

April 26

At the end of the month the 30-year FRM headed back down to an average of 3.88 percent, with the 15-year FRM slipped down to 3.12 percent. The one-year ARM average fell to 2.74 percent.
Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve's April 25 monetary policy announcement following two days of deliberations. The Fed stated that it expects economic growth to remain moderate and then pick up gradually.

What's Next for Interest Rates?

The Federal Reserve recently announced upwardly revised expectations for 2012 GDP and unemployment rate improvement. With these and many other signs of at least some economic growth, there is room for interest rates to move slightly higher in May. The 30-year fixed is not likely to go much higher than 4.10 percent, but it could plausibly move about 4 percent during the month.

If you are in the market for a new lake home please contact the Spouses Selling Houses team. Until next time. Ebbie :)