NEW FHA LEEWAY FOR APPROVALS

Having a low FICO score usually means there is no way for you to quality for a FHA mortgage, but changes to the underwriting process August 2015 means that more borrowers may qualify. According to some analysts of the new policies, up to 100,000 new potential borrowers may now qualify if you can convince underwriters that you can make the payments.

Loans based on FICO score

Since the sub-prime meltdown, mortgage loans to borrowers with FICO scores below 660 fell below $150 billion per year overall and remain there. This lower number of loan originations, due to lenders shying away from loaning to borrowers with scores under 640 results from poor lender performance reviews for higher-than-average loan defaults.

Neighborhood Watch System

To encourage more borrowing to the subprime market, the Federal Housing Administration made enhancements to their Neighborhood Watch Early Warning System to better compare the performance of loans to borrowers with lower credit scores. The FHA hopes that more accurate assessment will improve underwriting processes to include other characteristics outside of FICO scores for determining creditworthiness.

FICO scores

The Fair Isaac Corporation (FICO), a company that provides software to calculate potential creditworthiness, developed a scoring system ranging from 300 to 850 points based on their specific formula. Access to your FICO score comes via the three major credit bureaus (Equifax, TransUnion and Experion). The FICO score, based on information each credit bureau keeps about you in your credit file, includes your credit history—loans and repayment, credit card usage, etc.—the age of your credit, and the types of credit you use. Your score can differ among the three bureaus depending on the information they have in their system about you.

What’s new?

Under the new system, FHA’s system for judging lenders changes to offer a more fair metric so that lenders to communities with a higher concentration of residents with lower than average FICO scores may offer loans without the fear of penalties simply because of where they focus their loan business. Borrows falling into the potential new category include:

• Younger buyers
• First-time buyers
• Minority Loftholds
• Moderate-income working families

Potential buyers recovering from job loss during the recession when they may have gotten behind on paying bills may now have an opportunity to prove their creditworthiness despite their FICO score. These are the people with a reliable income, an ability to repay their loan and acceptable debt-to-income ratios.

While some lenders may wait to see how the new metrics will work, others may begin offering loans and programs to take advantage of the opportunity. If you’re hoping to buy a Loft in the near future, but have wounds from the recession, don’t count yourself out … shop different lenders to see if you can qualify under the new underwriting guidelines.

7 THINGS YOUR HOUSE PAINTER WISHES YOU KNEW

By Jamie Wiebe via Realtor.com

With the exception of hardened DIY-types (you know who you are!), just about all homeowners will hire painters at some point—whether to prepare their home for moving in, or for a sale, or perhaps to kick off a remodel with a new color scheme.

But homeowners tend to get nervous around painters. What if they spatter the new carpeting or shatter the china cabinet window? What if the colors you’ve painstakingly selected don’t work out?

Take a deep breath. You’ve hired a professional. Here’s how to help them do their best job.

1. Painting is art—let the pros do it

Think of painting as not just a skill, but also an art: You wouldn’t hover behind Michelangelo as he completed the Sistine Chapel, fretting the whole time, would you?

Yes, it’s true that your bathroom wall will never be one of the world’s premiere masterpieces, no matter how skilled your painter, but that doesn’t make back-seat painters any less annoying.

“Painting is something that’s more subjective than objective,” says Kevin Palmer, a painter in Simsbury, CT. “A good paint job involves a lot of artistry—besides product knowledge and great prep work, you’ve got to get a guy who seriously knows what he’s doing.”

And once you’ve found that, trust means letting painters do their job.

“People need to chill out a bit,” says Ryan Benson of Benson Painting Services in Apple Valley, MN. When customers hound, it’s “almost insulting,” he says. “Let me work.”

2. Prep can take a long time

According to Benson, at least 30% of a good-quality paint job will be prep time.

“That’s where less-qualified painters lower their bids. That’s where problems come with paint getting on things it shouldn’t be,” he says.

The differences between a rushed paint job and one done properly are enormous: paint on the walls and everything else; uncleaned walls leading to a splotchy paint job; your favorite couch ruined by a misguided spatter.

“It’s easy to not put a dropcloth down. All that stuff takes time,” Benson says.

Keep an eye out for the painters that skimp on prep—the best way to find detail-oriented contractors is to ask previous customers for a reference.

3. Make sure your home is ready to paint

Don’t leave all the prep work to the painters, though—they’ve got their hands full. Things will go much smoother if you make sure your home is truly painter-ready, and Benson estimates that this could save you up to 10% of the cost.

For interior jobs, make sure you’ve cleaned all of the awkward spots, including behind the toilet, and picked up any knickknacks that might get in the way (e.g., soap containers, loofahs, and kitchen organizers). Removing the switch plates and outlet covers from the walls also goes a long way toward speeding up painting time—and painters’ time is (your) money.

For exterior jobs, Palmer recommends trimming bushes and shrubs away from the house, leaving at least 18 inches of clearance. Making sure your gutters and downspouts are in “tiptop condition” can also speed up the painting process, he says.

4. Ask for touch-ups right away

After the paint job is finished, ask for a walk-through. Most painters should offer this regardless.

“Take all the time you want,” says Benson. “Pick us apart. We want to get it all done while we’re there. Don’t be afraid to have a list of touch-ups.”

That doesn’t mean most painters are willing to provide endless touch-ups, though—especially if it’s not a result of poor workmanship. Feel free to call back about something you noticed only when the light hit the wall in just the right spot—but if you scratched the wall while moving in your heavy dresser, be prepared to pay for a touch-up.

5. Sit on the toilet

What?

Yup, after getting your bathroom painted, sit your butt down on the toilet and stare. This is something Benson says he does after every job, because it’s a great way to catch tiny, missed spots you wouldn’t see otherwise.

“What you see in a bathroom when you’re painting it isn’t what you see when you’re sitting down,” he says. “Look around in the areas where you’re going to notice stuff.”

6. Compare the specifics of the bids

It’s tough to over-emphasize the importance of hiring painters who provide detailed bids. Deciding between two or three contractors is hard enough; it’s more so if you’re relying on pure guesswork. A bid that is “scribbled down on a napkin” is “not even comparable,” says Benson.

Look at the material costs. You don’t need to go with the painter who buys the most expensive caulk, but don’t go with the cheapest, either. Since painting is an art, materials are its medium—and cheap paint shows.

“People confuse price with value,” says Palmer. If you have to repaint your house twice as often than you would with a good job, “that’s not really a great value.”

7. Don’t be scared to ask for a discount

If you’re comparing two bids and you really love the more expensive painter—but your budget just won’t allow it—don’t hesitate to ask for a discount.

Sure, if the difference is astronomical, you and your painter might not be able to find a comfortable middle ground. But it never hurts to try.

Find original article at:

http://http://www.realtor.com/advice/home-improvement/what-your-house-painter-wishes-you-knew/?identityID=8309850&MID=2015_0828_WeeklyNL_LongSL&RID=323043802&cid=eml-2015-0828-WeeklyNL-blog_3_housepainter-blogs_trends

Prepare for Emergencies in Your Home

When you move into your new home, you may not think to revise and update your emergency plan, but natural disasters strike without warning. Avoid being caught without a plan in place at your new address. Here are steps to take to make sure you are ready the day you move in and continue staying prepared to keep your family safe.

Plan for safety and make a plan:

Sounds simple, right? Despite all of the natural disasters, fires, storms and mishaps in the news, many people do not have a plan for where to go, what to do, and how to reconnect with family members.

1. Learn what disasters affect your area and stay in the loop to receive early warning. Local city or community websites often provide information about natural disasters affecting your area. Use your community’s resources to prepare.

• WEAs: The national weather service provides free Wireless Emergency Updates (WEAs)—text message warnings and updates customized to your area. Check with your wireless carrier to make sure your device is WEA-capable and the service is enabled. Capable devices automatically receive government updates.
• Check out apps like Weather Bug and Simple Weather Alert that offer weather warnings straight to your phone or desktop.
• Listen to NOAA Weather Radio for information.

2. Know where to find shelter locations and learn how to “shelter in place”: Make sure you know where in your home is the safest and what community resources you can rely on to help you if you are not able to get home. If you have children, investigate the emergency response plan at their school to double-check their safety outside the home.

• Hurricanes: While we do not experience the worst of hurricanes, turn off propane tanks and small appliances if you are ever in danger. Switch your fridge and freezer to the highest setting and secure them closed if possible (if the power goes out you’ll want the cold to last as long as possible). Close all windows, doors and hurricane shutters. If possible, board up any windows without hurricane shutters (hurricane specific items to keep in the kit discussed below).
• Tornadoes and Thunderstorms: Know where your safest underground shelter is at work and at home, i.e.: basement, storm cellar, etc. If you do not have an underground shelter, find your most protected interior room such as a closet, hallway, or bathroom.
• Floods: When you receive a flood warning, whether at home or outside, move immediately to higher ground. If you are outdoors, be aware of drainage channels, canyons, or streams nearby. They fill with water quickly and may cut off your evacuation route.
• Earthquakes: Michigan does experience earthquakes, although it is usually very subtle. However, secure furnishings, decor, and appliances to avoid damage or injury during ground movement to stay safe if there is ever a bad one.
• Safe Spots: Know the safe spots in your home—inside walls and under furniture—and areas in your home to avoid near hanging objects, windows, and mirrors.
• Self Protection: When an earthquake starts, drop to your hands and knees and move to the nearest safe spot immediately while covering your head and neck. Secure yourself and continue bracing your head and neck.
• Fire: When a fire occurs in your home, get out and stay out. Move to safety before calling 911. Create a map of your home and memorize all possible exits to escape the fire. Practice low-crawling and Stop, Drop & Roll. Select a meeting place for your family so everyone knows where to go once they get out safely.
• Evacuation Preparedness: City or community-wide evacuations can be chaotic and scary; keep yourself calm and safe by preparing ahead. Make sure your safety kit (below) is accessible in the event you need to evacuate quickly. Keep extra fuel available for your vehicle—you may not have enough warning to get to a gas station before needing to evacuate. Visit your local community website to learn the evacuation procedures and locations for your area so you know what to do. Obey evacuation orders immediately. Stalling to “see if you really need to” puts yourself and others in danger and taxes emergency personnel unduly.

CAPTURING CLUTTER

Whether you’re preparing your home to sell, or your packing up to move to your new home … clutter can be your worst enemy.

But, getting chaos under control isn’t always easy.

The problem isn’t that you lack resources.

In fact, a whole industry sprang up to help folks tackle the problem of clutter: from simple lists and organizational tools to crews of “clutter police” to tackle your disarray for you, and even reality TV shows. You can find YouTube videos like this one to help you organize your linen cabinets and this one for your socks and underwear.

The abundance of resources might just seem like more clutter. For some people, even the thought of trying to de-clutter can seem overwhelming. And looking at pictures of the perfectly organized closets, cupboards and garages of organization gurus makes them feel like failures.

If clutter is messing with your home sale or move, don’t try to become the perfectly organized maven right now. Just get the basics down so that you can move on:

• Take small bites: Remember the old adage, ” How do you eat an elephant? One bite at a time!” Don’t try to tackle the whole house at once. If you have children, consider starting with their toys. Look for ones they’ve outgrown and no longer play with. You don’t need to get rid of them just yet; try putting them in a clearly marked box out of sight. If your biggest challenge is your closet, pull out the clothes from the season farthest away (winter if it’s spring or summer if it’s fall) and put them in clear storage bins. That way, you can see them, but they aren’t taking up the space that your current wardrobe needs.
• Time yourself: give yourself just one hour (or less) at a time to declutter one space. Tackle the junk drawer in the kitchen (yes, we all have one) and get rid of the odd paperclips, rubber bands, loose screws and broken pencils. Once you’re done with that one task, just get on with life … don’t think you have to do it all in one day.
• Use the doubling rule: if you think it’s going to take one day to organize—plan for two. If you think you can do it in two weeks, plan for four. That way, if you get done in less time you’ll be energized rather than being disappointed that it took longer.
• Use simple strategies: When organizing a room, use one box for KEEP, one for GIVE, one for DISCARD and one for SAVE. The KEEP box is for items that need to go back into that room, so it is a temporary resting place while you sort. The GIVE box is for anything you plan to give to friends, family or charity. Use the SAVE box for items that belong in a different location or that need to be in long-term storage. As you move from room to room, you’ll resort this box and return items to their proper room. The final box—DISCARD—may be the hardest one of all. Use it for anything broken, torn, damaged or otherwise unusable: just get rid of it. One caveat: if you plan to have a garage sale, add one more box called SELL for those items. If you don’t sell the items at your garage sale, move them to the GIVE box.

If you need to know which items to declutter for your home sale, talk to us!. We know what can turn off a buyer or make your home sale take longer … so tackle those items first.

REAL ESTATE TERMINOLOGY: APPRAISAL VS. ASSESSMENT VS. MARKET VALUE

In the vocabulary of real estate, there are three terms that indicate a home’s valuation: the Appraised Value, the Assessed Value and the Market Value. Rarely are these three values the same amount, so it is easy to confuse them when considering buying a home, obtaining a mortgage and contemplating ongoing costs of ownership. We’ll tackle them one at a time and then show you how they relate to each other.

Appraised Value

An appraisal is a valuation report completed by a licensed professional appraiser to determine property value at a given point usually for the purpose of obtaining a mortgage. It is an underwriting tool used by banks and other lenders to determine if the property is appropriate collateral for the loan they would be extending to a buyer for an original mortgage, or homeowner for the purpose of refinancing or obtaining a line of credit.

The appraiser uses recently sold comparable properties in the evaluation, accounting for differences in specific amenities such as square footage, the age of the roof, exterior and interior materials, the type and age of heating and cooling equipment, and a variety other factors to set a basis for the appraisal. The appraiser combines these numbers with other valuation methods such as the cost to rebuild the property (similar to the cost basis for homeowner insurance), or in the case of investment properties, the potential for income from rents or leases.

These numbers are not fixed. That is, there is no single list of values from which the appraiser draws. The appraisal relies on the appraiser’s own experience, understanding and knowledge of the area and property type. For the buyer, the appraisal that the mortgage lender uses is important because it determines how much money the lender is willing to extend to the borrower for the property. For an existing homeowner, an appraisal gives an indication of what a home will sell for, or the amount of a line or credit or second mortgage a bank will extend. During a home sale or refinance, the appraiser typically is the choice of the lender but paid for by the borrower. Having a proper appraisal is important to both the buyer and the seller since it determines the loan-to-value (LTV) ratio.

Assessed Value

An assessed value most often is performed by the taxing agency of a municipality—tax assessor—for the purpose of determining the tax basis of the property. The “assessment” is a percentage of the assessed value that the homeowner pays to the municipality as tax for capital improvements to roads, water and fire services, schools, and other essential services. Typically, the percentage amount of an assessment is the result of a vote on a levy.

Different from an appraisal where amounts are based on comparables, an assessment determines values for an entire neighborhood, city, or county during the evaluation period. The assessment is then an assigned number value to which the dollar amount may fluctuate as the municipality has need of more or less income. Therefore, while the actual tax rate may change from year to year, the assessment only changes when the values become outdated due to larger changes in the municipality’s structure, such as an increase in fire or 911 services, for example. Some cities or states only reassess homes when they are sold or transferred to new owners

Market Value

In real estate, market value is not the same as assessed or appraised value. For example, the price of popcorn at a movie theater might be $5.00 per bag, while that same amount of popcorn at a convenience store might be $2.00 and a similar bag at the grocery store would be just $.50. We are willing to pay each of these prices based on the location and convenience to ourselves at that place and time. In the same way, the market value of a home is the price for which a specific property will sell under a specific set of circumstances in its current condition at a specific time—typically 1 to 3 months.

There is no actual way to determine exact market value, given that if any of the circumstances change, the market value changes. The seller’s circumstances may change, the property circumstances may change (tornado, hurricane, imminent domain), the buyer circumstances may change (new business relocates to area), the community circumstances may change (school loses funding, commercial or industrial building built nearby) or any of a myriad of factors. So true market value is the price a house will sell for in the 30 to 90 day period. It is not what it will sell for in one week—that would be a price below true value—nor the price of the house if it hasn’t sold for 90 days—the price is higher than the market value.

How the Assessment, Appraisal and Market Values Relate

While each of these may be similar in amount to each other at a specific point, a property’s assessed may trail behind the appraisal and market values if the municipality has not upgraded the assessment in some time. Additionally, the appraisal must relate to comparables that the appraiser can prove to the lender, but cannot account for buyer-perceived value in a specific neighborhood, street or development. For example, if all of a buyer’s friends or family live in a two-block radius and a home becomes available in that neighborhood, the perceived value to that buyer may be higher than to another buyer. A motivated buyer may be willing to pay a higher price for a home than its appraised value, thereby adjusting the true market value.

7 Secret House Cleaning Tips From the Pros

Cleaning your house is a chore that takes you hours to complete. So you call a cleaning professional to do the task for you and BAM! They zoom right through the task. Ever wonder how? Us too. So we got the inside scoop — and some top-secret tricks — on their process.

Andrea Davis of the Huffington Post gives us 7 tips from the pros here!  7 Secret House Cleaning Tips From the Pros

Top 10 Preventive Maintenance Tips for Garage Door Owners

Your garage door is the largest moving part in your entire home, and is used multiple times per day at any hour and in all seasons. To keep your garage door operating smoothly for decades to come, it’s very important that you take the time to perform regular preventive care and maintenance. Here are 10 things that all homeowners can do:

1. Look and Listen

The most important preventive step you can take is to observe your garage door in action every time you use it. Is it moving smoothly or is it jerky in places? Does it operate silently or does it make grinding or scraping noises? Do both sides of the system (springs, pulleys and cables) look symmetrical?

2. Tighten up the Hardware

The average garage door moves up and down more than a thousand times a year. That’s a lot of movement and vibration, which can loosen the hardware. Examine and tighten all roller brackets and bolts with a socket wrench.

3. Test the Garage Door Balance

If your garage door is not properly balanced, the garage door opener will have to work harder, and it won’t last as long.

After you disconnect the opener by pulling the release handle (usually a red cord), manually move the door about halfway up. If it doesn’t stay put, the counterweight system (springs) are improperly balanced. Garage door spring adjustment is best left to the professionals.

4. Inspect and Replace the Rollers

The rollers, whether steel or nylon, need to be inspected twice a year and replaced every seven years or so, and even more if you use your garage door many times a day.

Worn, chipped or cracked rollers should be replaced as soon as possible. You do this by removing and reinstalling any roller brackets that are not directly attached to the cable system.

5. Replace the Weatherstripping

If the rubber weather seal strip on the bottom of your door is brittle or cracked, replace it right away to keep the elements out of your house. Weatherstripping is sold by the foot at hardware and home improvement stores. Just cut to size and insert into the grooves with the wide angle of the flange inside the door.

6. Lubricate the Moving Parts

Keeping your garage door parts greased up will add years of seamless operation to your system – and it takes just 10 minutes a year! Use white lithium grease on the opener’s chain or screw, and a spray lubricant, available from your garage door specialist, to coat the overhead springs.

7. Check the Cables

You should never tinker with the high-tension cables that lift your door because they have enough force to maim and kill. But you can check their condition so you know when to hire a pro. Check for broken strands and damage near the bottom roller bracket.

8. Test the Auto-Reverse Safety Features

There are two mechanisms: mechanical and photocell. In order to test the mechanical feature, place a piece of wood or a brick on the ground in the path of the door. When the door coming down touches that object, it should reverse direction and go back up again. To test the second, the photoelectric system with beams at each side, close your door and just pass your leg in the door’s path. Your door should reverse.

If your opener is more than 20 years old, it may lack this basic safety features – and so it’s time to buy a new garage door opener.

9. Clear the Tracks

Make sure the tracks on either side of the door are free from debris and, if you are so inclined, you can use a level to check the plumb. Any major adjustments to tracks must be done by a professional garage door technician.

10. Groom Your Garage Door

Don’t forget to examine the door itself. Wood doors will need to be checked for water damage and warp, as well as chipped and peeling paint. Steel doors may have rust spots that need to be sanded, primed and painted. Wash your garage door regularly with a mild all-purpose cleaner at the same time you do your car.