Autumn Advantage: 4 Tips For Selling Your Home In Fall

To play up the fall feel outside of your home, clean up flower beds and rake any leaves off your lawn—the first thing buyers should notice is the changing colors on your trees, not the muddled dead leaves on the grass.

A crisp chill in the air, the turning of leaves and the scent of pumpkin spice are all hallmarks of fall.

There’s no doubt it’s a beautiful season, and if you’re planning on selling your home by the end of the year, you can capitalize on all the good work nature already provides for us.

Accentuate the Positives When Selling Your Home

You want your home to stand out when you put it on the market, so start at the curb.

Add a wreath of seasonal plants on the front door for a finishing touch.

In the backyard, store away any summer items like pool floats, inflatable water slides and tiki torches. Add fall-related decor like a self-contained fire pit and warm-colored cushions on your patio furniture to create an outdoor space perfect for chilly evenings.

You can also add a pumpkin to the front stoop, but don’t carve it up because it will spoil much faster.

Remember to avoid using a pumpkin altogether if the weather is bitterly cold already, as it will rot faster—that will only attract flies.

Bring the Colors Indoors

Autumn’s natural color scheme is warm and earthy, reminiscent of cozy, fireside nights.

To bring some of that warmth inside for your open house, fill vases with red, orange and deep yellow flowers like marigolds, Mexican sunflowers or strawflowers. Place vases in the entryway, in the master bedroom and on top of mantles to add color throughout the house.

To make your home feel cozy and inviting, invest in throw blankets or pillows in the same shades as your floral arrangements. Place the pieces around your living room and bedroom to draw out the fall colors.

Add dried decorations, like dried wheat or dried cornstalks, to fill in empty wall spaces with that fall feeling.

Use Favorite Fall Foods

The pleasant scent of fresh-baked cookies or a warm apple pie wafting through the house can trigger memories of comfort and home.

To tie in with the season—and the much-beloved holiday foods—light some candles scented with apple spice, pumpkin spice, cinnamon, cranberries or ginger spice.

Add warmth and a touch of the holidays to your kitchen or dining room by creating a cornucopia centerpiece on your table or countertop. Fill the centerpiece with gourds, miniature pumpkins and maize to help potential buyers picture themselves cooking their first Thanksgiving dinner in their new home.

Don’t Overwhelm

While adding a bit of color and warmth will help buyers picture holidays ahead, keep your decorations clean and minimal.

Avoid overpowering a room with too many flowers and candles, and always remember keep personal items tucked away.

Even if the piece is holiday or fall themed, buyers like to picture their own decorations in a home.

Original Article From: www.Realtor.com | Written By: Craig Donofrio

Big Or Small: Which Home Size Is Best For You?

This can be a tricky question to answer. Partly because our needs change over the years and decades. After kids leave home, maybe smaller is better but prior to that, maybe a bigger home is what you're seeking–room for the kids, dog, and tons of the kids' sleepover friends.

The trends reflect our indecisiveness too. Sometimes McMansions are on the rise and then there's the complete opposite: tiny, tiny homes. In fact, you can watch fascinating shows online about families of four with a couple of dogs moving into these tiny well-designed homes or homes on wheels.

While that small may be far too small, size is a big consideration. It's also something you should think about before you go house-hunting for that perfect home.

Of course,while there are many personal reasons involved in choosing which size home is the best fit, there are also some very important considerations that can help you decide.

Here are few things to help you weigh your options.

The bigger the home, usually the higher the mortgage. You pay for what you get. It's likely the mortgage payments will be more. However, a smaller home with more amenities is sometimes not that far off in price from a larger home that gives you a bit more square footage.

Think about if you are planning to stay in the home a long time. If so, getting a bit more square footage now might be better than having to move again in a short period of time when you may outgrow the home.

Decide how much home you're willing to maintain. For instance, do you want the responsibility of a big back yard or do you want to have something in a planned development, such as a town home, where there is limited yard space to decorate and maintain. That reduced yard size can give you a lot more freedom and leave you with more money in your bank account as opposed to paying for landscaping maintenance.

Do you work from home or might you someday? This is really important these days as more and more people are working from home and setting up desk space on the dining room table is not optimal. If you think you might be working from home someday, look for a home that will have enough space for you to work, even it it's just a screened-off nook somewhere in the house. No doubt, you'll find a good use for the space, whether or not you actually work from home

If you want a bigger home but aren't sure you can afford it, consider your options. Can you get a roommate? Increase your income? Decrease your debt? Or maybe you can wait a little bit longer and save more to get into the home you really want.

The important thing is to think about the size and style of home you want before you start your house-hunting. This will help you target homes that are most suitable for your needs. Be sure to consult with experts to get the best advice and find out how much home you can really afford.

Original Article From: www.RealtyTimes.com | Written By: Phoebe Chongchua

12 Home Improvement Tips That'll Boost Your Home's Selling Price

With a few simple, low-cost tweaks, you can significantly enhance your house's curb appeal. 

Before you put your home on the market, paint the rooms neutral tones that will appeal to all buyers.

By Teresa MearsSept. 19, 2014 | 12:36 p.m. EDT+ More

If you’re looking to sell your home quickly and for top dollar, there are some lesser-known words that match the importance of the famous real estate phrase "location, location, location." 

Those all-important words? Curb appeal.

As the saying goes, "You don’t get a second chance to make a first impression." When people drive up and first see your house, you want them to think of it immediately as a home that has been maintained and well cared for.

"It’s you putting your best foot forward," says Christy Biberich, owner of Christy B. Design in Los Angeles who appears on the HGTV show "Brother Vs. Brother." "We do judge a book by its cover." 

While curb appeal gets buyers in the door, sellers who want to move their homes quickly need to take other steps. The strategy varies by neighborhood and market conditions, but staging a house to appeal to the maximum number of buyers can make difference in how fast the home sells.

[See: 10 Tips to Sell Your Home Fast.]

"Every property is completely different," says Cannon Christian, president of Renovation Realty in San Diego, a company that helps sellers make improvements designed to get them top dollar. "The little things that get people through the front door matter first." 

Obviously you don’t want to spend money that you won’t get back. Christian advises seeing what improvements house flippers are making in your neighborhood. Comparing the sales prices of, say, homes with older kitchens to homes with kitchens that have been updated is also a good idea. If you see about a $50,000 difference, a $25,000 remodel is likely a smart investment. If homes with original kitchens are fetching close to the same price as those with renovated ones, save your money, since sometimes “it also depends on how hot the market is,” Christian says.

You should also spend time scoping out the competition by viewing listings and photos of similar homes for sale and attending open houses in your neighborhood.

Once prospective buyers are inside your home, you want to make sure the entire house puts its best foot forward. That starts with cleaning and decluttering, two improvements that cost little money and provide a big return.

Next, focus on low-cost "transformative improvements," Biberich says. "The No. 1 thing you can do is paint." She advises using neutral tones, but that doesn’t have to mean just white and beige, as brown and cream are also safe choices.  

Since every dollar counts, hold off on pet projects and only devote your time and money to renovations that'll bring you a return. "If you’re looking to sell, do not do the improvements that you’ve always wanted to do," Christian says.

If, like most sellers, you have a limited budget, here are a dozen home improvements you can make to sell your house for top dollar.

Improve your landscape. Put down fresh sod, replace tired bushes with new ones and add some color, either with flower beds or potted flowers. “Even just a little bit goes a long way,” Biberich says.

Spruce up your entryway. Buy a new front door or paint the old one. If your house number and mailbox look tired, buy and install new ones.

Change out light fixtures and plumbing fixtures. Gold light fixtures are long outdated, and brass is less popular than brushed nickel. Replacing outdated ceiling fixtures and bathroom faucets can give your home a modern touch for a minimal investment.

Clarify any spaces that might confuse buyers. If you have an odd alcove, add a desk or a dresser – something that will suggest how the space is best used. “Most homes have some funky or dysfunctional things that can be corrected,” Biberich says. Don’t keep would-be buyers guessing.

Do partial renovations. Rather than gutting an old bathroom, for example, consider getting a new vanity and refacing the existing tub. In the kitchen, keep the old cabinets but replace the countertops and the hardware.

Original Article From: USNews | Written by: Teresa Mears

Adjustable-Rate Mortgage: Good Or Bad?

An ARM is a loan that offers you a short introductory period with a low, fixed interest rate. After that period—usually two to five years, sometimes more—your rate becomes adjustable, up to a certain limit.

Adjustable-rate mortgages are certainly tempting, with their low introductory interest rates, but we’ve all seen their downside in the recent housing crisis.

But adjustable rate mortgages, or ARMs, aren’t all bad; in fact, they can work well for many homeowners.

The secret is in understanding the potential problems and pitfalls before you sign up.

Adjustable-Rate Mortgage Basics

After the introductory period ends, ARMs become a bit of a gamble.

If interest rates stay the same or increase, your interest rate will jump up after the intro period ends.

If interest rates go down, it is possible your payments might stay the same or even go down.

Potential Problems With an Adjustable-Rate Mortgage

Many homeowners are able to work ARMs to their advantage, but there are still potential problems you should understand before committing:

• Rates will probably increase after the fixed intro period is over, and the increase can be sharp and dramatic.
• Gradually, your interest rate can go as high as the lifetime cap.
• Many new homeowners assume their financial situation will improve before the increase happens. This can create financial strain if things don’t go according to plan.
• Often, lenders offer an “interest-only” option. This lessens your payment to just interest, no principal. It is only allowed for a limited time period (usually five or ten years), and then the payment increases to allow you to pay off the home. This payment increase can catch some people off guard.
• Many ARMs have a prepayment penalty attached, meaning you cannot pay off your loan in full for the number of years specified in your agreement. If interest rates jump while you still have a prepayment penalty in place, you cannot refinance or sell your home without a huge cost.

How to Approach an Adjustable-Rate Mortgage

When you get an ARM, the loan is much trickier to understand than a fixed-rate mortgage. Lenders and mortgage brokers are legally required to give you supporting literature if they put you in an ARM. This is so you can be well-informed about your loan.

However, most people do not read through the brochures they are given—and therefore do not understand how their loan works. Make sure you read everything your lender gives you before you sign. Ask questions if there is anything you do not understand.

One of the reasons people get into trouble with an ARM is they haven’t planned ahead for the adjustments in payments. When you qualify for the loan, you are not qualified for monthly payments on the cap (i.e., the most the interest can increase), but rather the current interest rates. You must be prepared for the payments to go up if the rates go up.

The first step is to know what that payment could be. Sit down before you sign the loan documents and calculate what that payment could be. If you know you could never make that payment, don’t get the loan. It is too big a gamble.

Refinancing before the loan adjusts to a higher payment is often the best solution, if you have the ability. However, you need to read through the paperwork and know the conditions of the new loan. Don’t jump from one bad loan to another.

Original Article From: www.Realtor.com | Written By: Angela Colley

Potential Home Buyers Sidelined By Misconceptions

Lack of knowledge and misinformation may be discouraging Americans from buying a home according to a recent survey sponsored by Wells Fargo &Company.  The survey, conducted in June by Ipsos Public Affairs, found that many prospective homebuyers do not take the plunge because of uncertainty about their ability to qualify for a mortgage or about navigating the homebuying process.

The survey, "How America Views Homeownership," found that many Americans say their financial houses are in order.  Eighty percent said they know how to handle their personal financial affairs and 82 percent claim they generally don't spend beyond their means.  Only 27 percent said that they tend to spend their money and not think twice about it.  Sixty-three percent, including more than half of the millennials (ages 18 to 34) in the survey, said they have a "rainy day fund."   These factors, the bank says, all improve on the ability to buy a home.

"Although the homebuying process has changed in many ways in recent years, our survey found Americans still view homeownership as an achievement to be proud of and many believe that now is a good time to buy a home," said Franklin Codel, head of Wells Fargo Home Mortgage Production.

When it comes to buying a house 74 percent of respondents surveyors that they "know and understand" the financial process involved, but other responses indicated that this may not really be the case.  For example, Wells Fargo said that, while 68 percent of Americans feel it is now a good time to buy, almost a third - 30 percent - of survey respondents think that only individuals with high incomes can obtain a mortgage and 64 percent believe that someone must have a "very good" credit score to buy a home.

The survey found that while 64 percent claimed to be knowledgeable about downpayment requirements, 44 percent think that a minimum of 20 percent is required and a lack of these funds was cited by respondents as one of the biggest barriers to owning, especially for millennial respondents, age 18 to 34.  Forty-four percent also admitted to knowing little or nothing about closing costs for a home purchase and about half said they feel they lack access to homes that meet their needs financially.

All of this, the bank says, points to the need for more homebuyer education.  "Our survey also suggests we have an opportunity as lenders, nonprofit agencies and real estate agents to better inform Americans about credit ratings, mortgage costs and housing affordability," Codel says.  "This would help demystify the homebuying experience for many consumers."

"It is important for prospective homebuyers to feel empowered to ask lenders and real estate agents questions about available options, such as down payment assistance or FHA loan programs or VA loans for veterans," he continued.  "Ninety-five percent of survey respondents said they want to own a home if they don't already. Informing prospective homebuyers about their options is the first step toward helping them realize their goals."

The Well Fargo/Ipsos Public Affairs poll was conducted from June 3-16, 2014 with 2,017 adults.  They were interviewed on-line and the data were weighted to ensure that the sample's age/sex composition reflects that of the actual U.S. population according to Census information.

Original Article From: Mortgage News Daily | Written By: Jann Swanson

Move-Up Mania

You've got equity to spare. Your 2,000 square feet is starting to feel more like 200. All the neighbors are doing it. It's time to play a game of Move-up Mania!

Homeownership isn't the American dream - moving up and up to get to the home you really want is, right? Is it time for you to play the game? Answer the following questions and find out.

1. How close are you to being free and clear?Depending on how long you have been in your house and whether or not you have been overpaying your mortgage, you might be closer to paying off your house than you thought. If it's a dream of yours to own a home outright, well, maybe you want to rethink the move-up thing. Or, you could look into renting your existing home. If rental rates in your area are strong, you may be able to rent it for more than your house payment and use the money you'll make to cover the difference in your new house payment.

2. Is staying in your existing neighborhood important?

Your kids may not appreciate the extra bedrooms or the pool out back if they have to move our of their schools and leave their friends behind. Make sure if you're making a move for the good of your family that you are in touch with what your family really wants.

3. Do you really need more space?

If you answered yes, do you need more space more than you need a college fund or a nest egg? It all comes down to priorities.

Yes, space is important. If you have more children than bedrooms, more stuff than you can store, or are in an older home that would be impossible and/or price prohibitive to enlarge and/or update, that's one thing. If it's just a "Keeping up with the Joneses" thing, well, then there are a few other questions you'll want to ask yourself, like whether or not the Joneses will make your house payment if you get yourself in trouble by biting off more house than you can chew.

4. Do you want to do your part for the economy?

By most accounts, move-up buyers help move the economy along by stimulating the real estate cycle. More first-time buyer homes on the market means more first-time buyers. "The return of move-up buyers is good for the market as a whole," said MSN. "It brings more homes to the market, particularly much-needed starter homes, as these buyers trade up. It's also a good sign for the broader economy. An important sign of a healthy and sustainable recovery is increased housing turnover driven by trade-up buying, which is more or less discretionary spending. These buyers are typically more responsive to market conditions and financial incentives."

5. How much can you reasonably afford to increase your payment?

Even with equity in your existing home, you may still have increased costs once you move.

"Often times, we eyeball these things: rates are still good, you just got a raise, you can well afford your current payment, looks like your home is worth more now and those houses up the hill don't cost that much more," said Forbes. "There's a lot more to account for in this equation. You need to factor in what the actual increase in your mortgage payment will be, but also how much you'll net on your home, how much cash you'll need to close on your next one, and how much your utilities, property taxes, insurance and other home-related expenses might increase if you move up."

6. In many areas, ample equity makes the move up possible. But is a big step up doable in your desired neighborhood?

In some markets, the disparity between your starter home and the one you want to move up to is vast, and some move-up buyers simply can't make the leap.

"Move-up buyers (may not) have enough equity in their home or liquid cash to purchase another home," said CNBC. Fast-appreciating markets throughout the U.S. and even in Canada may be feeling the pinch.

"It's not just first-time buyers who are finding themselves priced out of fast-appreciating housing markets — the high price tag of properties is also starting to ‘paralyze' the move-up market," said The Star.

7. Should you stay put and renovate?

Whether to move or improve is always a difficult question, but "a few cost-benefit calculations can help you make the right decision," said Houselogic.

"As a general rule, improving costs less than trading up. But it depends on what kind of improvements you're doing," they said. "Figure paying somewhere between $100-$200/square foot for new construction or a major remodel, depending on the scope of the project and labor costs in your area."

If your move-up plan was predicated on not having enough space for family, it might be a smart decision to add on. Not only will you get the space you need, with a design created to your specifications and style, but you may also increase the value of your home. See the Remodeling" magazine's 2014 Cost vs. Value Report to get an idea of return on investment for different improvements.

Original Article From: www.RealtyTimes.com | Written By: Jaymi Naciri

Your Primer For Buying Condos, CO-Ops, & Duplexes

So much real estate information focuses on the single-family home, but that’s not the only option for many buyers.

Not all apartments are created—or their buildings governed—equally, however.

This is what you need to know about condominiums, co-operative housing and duplexes.

Condos

Just like a single-family home, a condo owner runs his or her domain. A condo owner has a deed for the apartment, pays real estate taxes for the unit, and can rent out their unit if they wish.

Maintenance is a different story. Condo owners pay fees to keep up the grounds and the building (or buildings, for a larger complex). On one hand, you don’t have to mow the lawnevery week. On the other, you help pay for someone who does. Fees can vary greatly depending on the building, the lands, and how well those in charge of the finances run the place.

A condo can be a good option for retirees or a disabled person who can’t manage a whole house. The relatively quick approval process for buying some condos makes it good option for young home buyers. If you’re interested in lots of personal space surrounding your home … well, you’ll share walls with neighbors.

In order to determine the market value of the condo, check the sales prices of condos of similar size, age, location—and those that have similar maintenance fees.

Also engage in due diligence when it comes to the finances. You don’t want to move in only to find the building needs multimillion-dollar fixes—and now you have to help pay for that.

Co-ops

A co-op is a non-profit company that owns and operates a residential complex. Buyers lease one of the building’s units by buying shares of stock in the building’s corporation.

Buyers have to go through a complex approval process, don’t own their apartment and don’t have ultimate control over to whom they can rent, sublet, or sell their property. If renting, you may have to present your potential tenants to the board for approval.

Mortgage or tax bills aren’t sent to the co-op shareholders but to the corporation. A monthly co-op fee includes the mortgage payments, taxes, maintenance and utilities. This cost is usually higher than condo fees. And they often require a larger downpayment than other options—but also often cost less overall.

There are financial advantages of co-op living—including substantial breaks on real estate taxes, transfer taxes and a recordation tax that occurs in real estate transactions. According to bankrate.com, co-op owners can deduct the maintenance fees from their taxes.

Duplexes

A duplex can refer to a residential unit attached to another, with a small yard to maintain. In some areas, like New York City, a duplex describes an apartment with two floors, in any kind of building.

(This is a prime example of doing your homework to make sure you understand differences in local real estate nomenclature.)

If you’re not ready to purchase a single-family home, a duplex or townhouse can be an accessible option. You could purchase a two-family house and rent out the second unit, subsidizing your own housing costs with a real estate investment. Depending on location, you may be able to qualify for publicly-funded home improvement costs.

If you decide to move out, you can simply rent it out. Your rented duplex will then be 100% rental property, while your expenditures on it are tax deductible.

Keep in mind, though, that your on-site living arrangements won’t offer you as much privacy as a single-family home. And you’ll have to learn how to play landlord—you’re responsible for not only your backed-up toilet but your tenant’s as well.

Other duplexes, especially in big cities, may allow for two families to each own in one small building. Splitting costs can get tricky. But you may get more space than you would in a condo, without the cost of a full house on your own.

Moving forward

Before you decide which is the best option for you, consider these basic questions:

• How important is privacy?
• Is owning your own property a priority?
• Do you need professional maintenance help?
• Do you have less-than-perfect credit which could adversely affect an easy approval process?
• Would you like the option of being able to rent, sublet, or sell the unit to whomever you choose?

Research all your options to gain a better idea about which type of housing solution is best for you.

Educate yourself as much as possible while seeking the advice of a professional real estate agent who can help you.

With knowledge, patience and determination, you’re bound to find the right home.

Original Article From: www.Realtor.com | Written by: Anne Miller

The Fastest Way To Get Pre-Approved

Getting pre-approved for a loan can make the whole home-buying experience go smoother.

When you’re pre-approved, REALTORS® are more likely to want you as a customer, sellers are more likely to accept your offer, and—by knowing what you can afford—you’ll know what homes to look at.

And it doesn’t have to be a hassle either. With these easy tips, you can get a pre-approval without ever leaving your sofa.

Get Your “Pre-Approved” Facts Straight

Applying for a pre-approval doesn’t require nearly as much paperwork as applying for a mortgage, but you’ll still need to be as accurate as possible if you want to make sure you’re getting the best deal—and the most offers.

Start by gathering the information you’ll need:

• Estimated purchase cost. If you have a home in mind, look up the seller’s asking price to get an idea of how much you’d need to borrow.
• Down payment amount. Knowing how much you can put down will have a big effect on your pre-approval.
• Personal information. You’ll need basic info like Social Security numbers and driver’s license numbers for anyone on the application.
• Proof of income. Gather recent paystubs, tax returns and paperwork from your employer.
• Proof of assets. Gather bank statements, retirement accounts, CDs and other documents showing your assets.

Estimate Your Credit Score

While any prospective lender will pull your credit score, you’ll also be asked to estimate your credit score on your application.

To make things easier, you can order a copy of your credit scores for a small fee from one the three credit bureaus—Equifax, TransUnion and Experian—before you apply for a pre-approved loan. By law, you’re entitled to one free credit history report a year from each of the credit bureaus.

You can also use your credit report to make an educated guess about your credit scores. For example, if you have low-to-no debts, active credit lines and a history of timely payments, you probably fall in the “good” credit score range.

Apply Online

Once you have your information and credit scores together, you have two options to apply for a pre-approved loan. If you have a particular lender in mind, you can visit the lender’s direct website to see if you can apply online.

Many lenders have this feature, but you’ll have to fill out an application for every lender you want to use.

If you want to go the faster route, try a pre-approval service like the one featured on therealtor.com® individual listings page. By checking the box that says, “I want to get pre-approved by a lender”, you’ll be connected with up to three lenders right away.

Staying Safe

Before you apply online, read through the company’s privacy settings. Look for companies who state this information:

• Clearly list how your personal information will be used
• Explains their pre-approval process
• Guarantees not to sell your personal information to third-party companies or vendors

Knowing what you can expect while getting pre-approved will keep your identity safe.

Original Article From: www.Realtor.com | Written by: Angela Colley

Understanding And Planning For Property Taxes The Right Way

Property taxes are determined by the overall market value of your home—not the price that you bought it for.

Knowing what to expect from property taxes, and what tax relief you can use, is an essential part of budgeting for home buying.

The last thing you want is to be caught off-guard by a large tax bill you aren’t in a position to pay.

What are Property Taxes?

Property taxes vary by area and are used to pay for local government things like education, emergency workers and libraries.

How Are Property Taxes Assessed?

This home value assessment is determined by a tax assessor, either when the property is sold or renovated—or according to a fixed assessment schedule.

If you think your property assessment is too high, you have the right to appeal it.

Budgeting with Escrow 

Some loans, like Federal Housing Administration (FHA) loans and high-risk loans, require an escrow account.

Escrow accounts work like a forced savings account. The lender estimates the annual costs of property taxes and insurance. Each month, you pay a portion (one-twelfth) of that cost into the account.

By doing so, you won’t have to pay a lump sum of property taxes and insurance at the end of the year. For lenders, an escrow account cuts down on the risk of foreclosure due to bad budgeting by the homeowner. Escrow accounts can also be optional.

Escrow accounts can be very useful for people who aren’t very good at budgets. They also lessen the brunt of end-of-year costs. However, if you’re good at saving and like to micro-manage your own finances, an escrow account might just get in the way.

If you do have an escrow account, check your transactions to ensure your lender is paying your taxes and other expenditures by the due date.

Tax Deductions and Relief

Many states offer various forms of property tax relief.

• The homestead exemption: This is where a percentage of your home’s assessed value is excluded from taxes. The homestead exemption varies by state. Some states offer it with a cap on the amount of money you can be exempt from while some states do not. Other states may require the homeowner to qualify under other criteria, such as age or income, to be eligible for the benefit.

• Tax rate caps: This is the maximum amount that you will have to pay in tax. Not all states have one.

• Property tax deferral: This allows some homeowners—such as seniors, those with disabilitiesor those with low income—to delay paying property taxes. Keep in mind additional costs like filing fees and accumulated interest on the delayed tax can be incurred.

• Relief for military veterans: These tax relief programs also vary by state, although they often apply to veterans who were honorably discharged or have served during wartime. Check with your Veterans Affairs office to see what you qualify for in your area.

• Energy tax relief: Homeowners who make eco-friendly renovations may be eligible for property tax breaks.

Planning for Property Taxes

You should find out more information about your county’s property taxes from your local assessor’s office or your town’s website.

Remember, tax exemptions can vary by state, so don’t bank on not paying for something unless you personally verify it.

Key budgeting tips to remember include what the likely assessment value of your home will be, when the next assessment will occur, and whether you qualify for any tax relief.

Original Article From: www.Realtor.com | Written by: Craig Donofrio

7 Warning Signs Of A Bad Loan

The sad truth: the greatest trick a lender could ever pull is pretending your best interests are at heart while laughing all the way to the bank after giving you a bad loan.

The old joke: the greatest trick the devil ever pulled was convincing the world he didn’t exist.

When you go to shop for a loan, look for these bad loan warning signs—and be prepared to run—not walk—away from the table, from any lender who does the following dubious actions.

1. Says It’s Okay to Fudge Some Numbers

If your lender is trying to get you to lie about your income in order to get a bigger loan, stop dealing with that lender immediately.

There is no such thing as a little white lie when borrowing money: it’s mortgage fraud, and it could get you slapped with steep penalties or even jailed.

2. Pressures You into a Bigger Loan

Beware of any lender who pressures you into borrowing more money than you need.

You will likely pay more in interest on the extra cash than you’d earn in interest by stashing it away in a savings account.

Stick to what you need, no more.

3. Doesn’t Consider Your Monthly Income

Figure out whether you have enough coming in to cover all your monthly bills, a new mortgage and a savings account for emergencies.

Know that number and stick to it—if a lender starts pressuring you into a bad loan with monthly payments you know you can’t afford, get out.

If your outflow is more than your inflow, you will find yourself in trouble rather quickly.

4. Doesn’t Disclose Documents

Beware of any lender who fails to provide you with the required loan disclosures or tells you don’t need to read them.

By law, lenders have to tell you the annual percentage rate (APR) plus provide a good faith estimate (GFE)—an itemized list of estimated closing costs—within three days after you apply.

The APR includes not just the interest rate, but also points, broker fees and certain other credit charges. The GFE covers these charges as well as everything else you’ll be asked to pay at settlement.

You should use these documents to loan shop.

5. Promises One Thing, Delivers Another

If you are presented one set of terms when you apply for the loan and a different set at closing, you should demand an explanation.

It could be a bait-and-switch scam, where the lender is trying to pressure you into signing these new documents with worse rates or unfavorable terms.

Be prepared to walk away and take your business elsewhere.

6. Says It’s Okay to Leave or Sign Blank Forms

It is never okay to sign a blank form, period. If you leave blanks, a scamming lender could fill in extra terms and conditions that could alter your loan—and not for the better.

Worst-case scenarios could have lenders who write in clauses surrendering the title of your home.

Don’t let anyone fill in the blanks later. If there is a blank, cross it out and initial your mark.

7. Doesn’t Provide Copies

Lenders may not give you the actual filled-in papers in advance, but they should give you blank documents so you can take them home to review or show them to a trusted advisor.

If they won’t, maybe they have something to hide.

If the lender won’t give you copies of what you’ve signed at closing, cancel the deal right then and there.

These papers contain important information about your rights and obligations, and you need them.

Always Ask Questions or You Could Get a Bad Loan

When there’s something you don’t understand while shopping for a mortgage, consult with someone you trust for an explanation.

That could be an attorney, financial advisor or your local credit counseling agency.

Original Article From: www.Realtor.com | Written by: Craig Donofrio