How to Sell a Home from Long Distance

February 22nd, 2012

For Sale Perhaps you’ve recently moved to another state for a new job, or an out-of-state parent has had to move into a health care facility, and now you’re faced with the challenge of selling a house from a far. While this may not be an ideal situation, you can successfully sell a home located in another state by following these tips.

Build a Team of Trusted Professionals

Let’s face it – it’s going to be hard for you to continually come back to maintain the home, let alone sell it. Therefore, you need to put together a team of true professionals to help you make any needed repairs, maintain, care and sell the home. Don’t rely on family members or friends to do this for you. You’re only setting yourself up for disagreements, excuses and potential trouble. You need to think of this as a business transaction that requires expertise to get the job done.

Get an Experienced Realtor

The most important person on your team is a seasoned, local real estate agent. Shop around for a Realtor until you find someone who has experience in these types of situations. You want a well-connected agent, who’ll get your home sold as quickly as possible. Also, you want someone who is tech savvy and a good communicator, since you’ll be interacting with this person via phone calls, email, voice mail, texting, or Skype most of the time. Make sure you do your part though by responding to your Realtor’s requests in a quick and timely manner.

Hire a Handyman or Contractor

Since your home will be sitting empty, you’re going to need a reliable, dependable handyman or contractor to get repairs done and maintain the home. Either use someone you’ve worked with before who is familiar with your house; or, ask your real estate agent, friends or neighbors for referrals. Besides being trustworthy, you want someone is accessible since you’ll be working with him/her via phone calls or email. Also, make sure they can accept checks or credit card payments since it’ll be difficult to pay them in cash. Establish, in writing, the tasks you want him/her to do to avoid confusion. Arrange for a third person to check to see if the items were completed to your satisfaction.

Enlist a Home Stager

Over 85 percent of people have a hard time visualizing a furnished home when it is empty. Therefore, your home will sell faster if it is decorated. Hire a home stager who has experience in handling vacant homes and has access to furniture and accent pieces. A stager will help make your home look inviting and lived in, so no one will know it’s actually unoccupied. Additionally, the stager can review the work of the handyman or contractor to make sure things are being taken care of while you’re away. Ask your Realtor if he/she knows a stager they’ve worked with. This person should also be readily accessible and able to accept a check or credit card payment.

With the right team in place, you can successfully sell your home from long distance.

If you’re moving into a new home and need a loan, let Grandview Lending be a part of your team. We can review your lending options with you and develop a mortgage plan that’s tailored to your needs.

Tips for Selling Your Home Online

February 16th, 2012

Selling Home Did you know that 92% of homebuyers start their house hunt on the Internet? And if your online listing isn’t compelling enough, they will never even come to see your home.

Recently on a TODAY show appearance, real-estate expert Barbara Corcoran talked about the importance of marketing your home online. She says the Internet “is where the battle to sell a house is fought every day.”

First, Corcoran says you need to make sure your real estate agent is posting your home for sale on the top five real-estate search engines:

By posting on these sites, your listing will pop up at the top of the search page instead of being buried deep within the listings and never looked at.

Second, Corcoran says curb appeal, in the old-fashioned sense of the word, does not exist anymore. Most homebuyers are doing their “drive-by” of your home online. Therefore, it’s essential to have good quality photos of your home online to show its fullest potential.

A study by Trulia.com found that listings with more than six photos are twice as likely to be viewed by buyers compared to listings with fewer photos. Therefore, you should include several photos of the interior and exterior of your home. For the best photos, you should:

Crop out sidewalks and streets in exterior shots.
Make sure the lawn is mowed, and the bushes and trees are trimmed.
Make sure the exterior of the house is well lit. But avoid shooting photos into the sun.
Remove any interior and exterior clutter.
Make sure your home looks “bright” when taking interior photos – open drapes and blinds, and turn on the lights.
Take close-up photos of interesting details, like the fireplace mantle.
Stage your home like the magazine stylists do – place floral arrangements or fruit in bowls in rooms, and light a fire in the fireplace.

Besides great photos, homebuyers want information about your home to help them decide if it is right for them. Therefore, you provide your Realtor with accurate, detailed information about your home and surrounding community.

By creating a good impression with compelling photos and information on the real-estate websites, homebuyers will be more likely to schedule a viewing to check out your home in-person – which may potentially lead to an offer.

If you’re in the market for a new mortgage, Grandview Lending is a trusted mortgage broker with years of experience. We are happy to discuss any mortgage options with you.

Obama Proposes New Mortgage Refinance Plan

February 8th, 2012

House on Money On February 1, President Barack Obama outlined his administration’s latest plan to help millions of homeowners refinance their privately held mortgages at lower interest rates. The plan would enable eligible borrowers to save about $3,000 annually if they refinance their loans through a Federal Housing Administration (FHA) program, which would guarantee the new loan and assume the risk if the borrower defaulted.

The plan, if approved by Congress, would cost between $5 billion and $10 billion, depending upon participation. President Obama wants to pay for the program by imposing a tax on large banks to finance the FHA’s insurance fund; however, proposals similar to this have failed to win support in the past.

To be eligible for this refinancing program, borrowers must:

Have a private, non-government bank loan.
Be current on their mortgage payments for at least six months. Plus, they cannot have more than one late payment in the six months prior to that.
Have a credit score of at least 580.
Have a mortgage balance that falls within the FHA loan limits in their communities – a range from $271,050 in low-housing cost areas to $729,750 in high-cost areas.
Own and live in the home covered by the loan.

President Obama also wants the program to require lenders to write down mortgage balances on loans that are deeply underwater – those in which borrowers owe more than 140% of their current home values. This reduction would lower the risk of the borrower defaulting.

Additionally, a program option would let borrowers refinance into 20-year loans. While this option may not reduce the borrowers’ monthly payments, it would enable them to build home equity quickly and pay off their loans sooner. To encourage borrowers to choose this option, the administration wants the FHA to pay for closing costs for an additional savings of about $3,000 to homeowners.

This program targets the 3.5 million homeowners who are not in default on their mortgages currently. However, it does not help the owners of roughly 3 million homes who are at risk of foreclosure.

The administration hopes this program will bolster the housing market and free up cash to encourage consumer spending – thus helping the economy.

What are your thoughts on this new proposal?

If you’re planning to refinance your home, contact a reputable mortgage broker to review your specific situation with you to find the right solution for your needs.

Four Tax Deductions Homeowners Need to Know

January 31st, 2012

Taxes Buying a home can be a big investment. However, your home may provide you with tax advantages. Here’s a list of four common tax deductions for homeowners:

1. Mortgage Interest Deduction

In the early years of your mortgage, the majority of your monthly house payments goes toward interest. You may even have multiple mortgages – one for your main home and another for a second home or a home equity loan. As long as the purpose for these mortgages is to buy, build or improve a home, the interest is usually fully tax-deductible. The exceptions are if the interest on your mortgages exceeds $1 million, or the mortgage interest is for three or more homes. Your lender will issue you a Form 1098 for each mortgage, which explains exactly how much you can deduct. Be sure to keep these forms in case you’re audited by the IRS.

Note: If the loan is not a secured debt on your home, the interest cannot be deducted.

2. Property Taxes

The second biggest tax deduction you can take is for the taxes you pay on your home. Annual state and local property taxes can be deducted based on the assessed value of your property. However, property taxes are only deductible in the year in which they were paid. Also, if this is your first year in your home, be sure to deduct your share of the property taxes included on your settlement or closing statement for your home.

3. Mortgage Insurance Premiums

Homeowners who purchase a home (a main or second residence) with less than a 20% down payment must carry private mortgage insurance (PMI). This insurance protects the lender if the homeowners default on the loan. You must itemize your deductions to claim the PMI deduction. You also need to have an adjusted gross income (AGI) of less than $100,000 for single, married or head of household taxpayers, or $50,000 if married filing separately. Once your AGI is above $109,000 ($54,000 for married filing separately), you no longer qualify for this deduction.

4. Points

When you purchase or refinance your home, points are the fees paid to obtain the mortgage. If this is your first year in your main residence, you can deduct the points you paid at closing on your tax return for the year you paid them. If the seller paid some or all of the points for you, you may still be able to deduct them. Ask your tax advisor. If you refinanced your mortgage, you can deduct the points proportionately over the life of the new loan. Also, if you still had points you were deducting on a previous refinance, you can write off the rest of the points in the year of the new refinance.

Since taxes from owning a home can be confusing, you should always talk to your tax advisor to determine what deductions apply to your particular situation. Also, make sure you keep excellent records, so you can take advantage of deductions.

If you’re looking to buy a new home or refinance in 2012, contact Grandview Lending. We can review your particular situation to find the right mortgage solution for you.

Beware of Code Violations on the Home You’re Buying

January 24th, 2012

Did you know that as a homebuyer you may be a liable for a code violation on the property you’re attempting to purchase?

Per an article in Chicago Tribune, code violations can often derail a home sale.

So what are code violations? These are violations and fines recorded by a city or county’s code enforcement section against the property. The most common violations are unpaid property taxes and homeowner association (HOA) fees. In 16 states and the District of Columbia, HOAs can issue liens against the property which take precedence over any other liens – called a super lien.

Additionally, violations can include issues with minimum building construction standards, accumulated trash, improper care of swimming pools, overgrown yards and landscaping, or even, noise complaints about barking dogs.

Most violations occur when the previous homeowners were involved in some kind of duress, such as bankruptcy and foreclosure. However, violations can occur at any time. Once a fine has been issued, if it goes unpaid, it can grow into a five- or six-figure penalty over time.

Lien In many cases, the real estate agent or the bank may not know about the violation until the property is in the escrow period. If a lien is recorded, then the title company should find it during the title search. Unfortunately, sometimes this happens a few days before escrow closing.

At that point, either the home seller or the homebuyer will have to pay the fine and get any violations fixed. However, if the property was a foreclosure, it’s sometimes not that simple. Ideally, in these cases, it should be the bank’s responsibility to take care of the issues and pay the fine. But that doesn’t always happen. Then since the lien is against the property, it becomes the responsibility of the buyer. If the buyer accepts responsibility, he/she pays the fine and gets the violations fixed. If the buyer won’t accept the responsibility, then the sale falls through.

So how can you determine if the property you’re buying has any code violations? First, be sure to read the preliminary title report carefully to see if there are any liens or violations against the property. Second, you can obtain a code property inspection, which is different than a home inspection. A home inspection reports on the condition of the home, while a code property inspection looks for building code violations and liens due to violations. Also, be aware that code violations tend to be a bigger issue in real estate markets that have high foreclosure rates and negative equity.

If you are buying a new home, contact a professional mortgage broker to help you secure a mortgage loan that’s right for your needs.

New Year’s Resolution: Home Improvement?

January 3rd, 2012

Home Repair Have you made your New Year’s resolutions? Most people think of resolutions in terms of self-improvement – losing weight, quitting smoking, and getting more exercise. But why not make a resolution to improve your home in 2012?

While the economic downturn has forced many people to reassess what’s necessary and what’s not, remodeling trends show that people are:

Investing in spaces that meet a need to accommodate schoolwork, computers or sports equipment.
Focusing on features that put an emphasis on family.
Looking for ways to make to their homes more energy efficient in order to save money.

Some remodeling trends for 2012 include:

Upgraded kitchens that offer convenience and energy savings – induction and gas stovetops, engineered stone and quartz bars, European spray pullout faucets, deep single bowl sinks, and French door refrigerators.
Mini-spa-like master bathrooms with large steam showers that allow homeowners to relax and save money by conserving water. Other popular features are dual rain shower heads, quartz and granite countertops, large benches and handle grip bars in showers for the elderly, and high-efficiency toilets and faucets for water savings.
Large family or great rooms that open up to the kitchen and dining room, creating a free-flowing space for optimal entertaining with family and friends.
Lifestyle centers, instead of a formal office, for computer and electronic equipment use, providing an area for the kids to do homework or adults to pay bills.
Mud rooms that serve as drop zones for coats, hats, shoes, backpacks and other clutter. These rooms include cubbies, hooks, and closets for storage, and can be combined with the laundry room.
Updated flooring with radiant heat. Homeowners are switching from carpet to hardwood, laminate, bamboo, stone, cork, tile or reclaimed materials. Radiant heating provides a practical and efficient way for homeowners to heat their home.
Energy-efficient windows, appliances and lighting for cost savings.

Even if you can’t afford to spend a lot on updating your home, you can always add a coat of paint, or declutter and purge old items to give your home a fresher appearance.

If you are doing a major renovation project and need a remodeling loan, contact Grandview Lending. We’re here to work with you for all your lending needs.

New Year’s Resolution: New Home in 2012?

December 28th, 2011

House Shopping Cart The new year is almost here. Is buying a new home on your list of resolutions for 2012? If it is, then you need to make sure your financial situation is order. By following these tips, you can make your dream a reality.

1. Improve Your Credit Score

In order to determine whether you qualify for a mortgage, banks or lending companies will check your credit score to determine how much of a risk you are in repaying the money they loan you. The higher your credit score, the more trustworthy they’ll view you. A low score may keep you from getting a loan or the best interest rate. Therefore, check your credit reports with Experian, Equifax and TransUnion to make sure the information contained on them is correct. Get any inaccurate information corrected. It can take 2 to 3 months to resolve any discrepancies. If your credit score is low, you’ll need to make an ongoing effort to improve it by paying down debt, paying your bills on time, keeping your credit card balances low, and not opening new lines of credit. Over time by managing your credit responsibly, you can improve your score.

2. Determine What You Can Afford

Use one of the many online calculators to determine how much you can afford for a home, or contact a reputable mortgage broker to discuss your financial situation. Generally, you can afford a home that costs about 2-1/2 times your gross annual salary. However, if you have other financial obligations, like credit card debt, alimony or child support, you may need to settle for a less expensive home. Also, the size of your down payment will determine what you can afford, too.

3. Save Money for a Down Payment and Closing Costs

Generally, lenders want at least 20 percent of the home’s purchase price as a down payment. If you can pay more, you may qualify for a larger loan. If you don’t have the money, you may still qualify for a low-down payment mortgage (as little as 3 percent of the home’s cost) through a variety of public and private lenders. Plus you’ll need to pay for private mortgage insurance which adds about 0.5 percent of the total loan amount to your mortgage payments for the year. You also need to ensure you have enough money saved to pay for closing costs and other fees for the appraisal, title search, inspection, and attorney.

4. Consider All Costs of Home Ownership

Besides your monthly house payment, make sure you can afford all the other costs associated with home ownership, such as property taxes, homeowners’ insurance, homeowners’ association fees, utilities, maintenance and repairs, and home improvements.

5. Build Up Your Bank Account

In addition to saving money for the down payment, closing costs and other fees of home ownership, you should have at least 3 to 5 months’ worth of mortgage payments saved. Your lender will want assurance that you’re a good loan candidate who’s not living from paycheck to paycheck.

By taking a good look at your financial situation and doing what you can to make changes to improve your credit history and save money, you can improve your chances of qualifying for a mortgage and buying a new home in 2012.

Is Your Home Ready for Winter?

December 20th, 2011

This week is the official start of the winter season. If you haven’t already done so, you should prep your home for the cold weather. The following is a checklist of things to do, so you don’t have to worry about your home this winter.

Have your furnace inspected to make sure it’s working properly. Keep plenty of furnace filters on hand and change them monthly.
Bleed the valves on hot-water radiators.
Check your doors and windows for leaks – caulking and weather-stripping as needed. Install storm windows, replace any cracked windows and/or install plastic sheeting on the insides of windows.
Clean out your gutters and downspouts.
Replace missing or worn roof shingles or tiles.
Add extra insulation in the attic.
Insulate any water pipes along exterior walls to reduce freezing. Disconnect garden hoses, drain and store them inside the house. Turn off the water supply to exterior faucets and drain the water in the line. Consider installing an insulated faucet cover.
Seal foundation cracks and entry points to keep small animals out. Close up crawlspace entrances. Seal the areas around dryer vents, cable outlets and mail chutes.
Have your chimney or flue inspected. Make sure the fireplace damper opens and closes properly. Stock up on dry, seasoned wood for wood-burning stoves or fireplaces.
Install smoke and carbon monoxide detectors. Install fresh batteries in existing detectors.
Trim tree branches that are close to the house or power lines to prevent house damage or the power lines from coming down in storms.
Stock up on rock salt or environmentally friendly products to melt ice on walkways. Keep sand available for traction for your vehicles.
Tune-up snow blowers and have snow shovels handy.
Prepare an emergency supply kit that includes a three-day supply of food and water for each person, a battery-powered or hand-crank radio, flashlights and batteries, candles and matches or lighter, battery back-up to protect your computer and electronic equipment, extra blankets and warm clothes, first-aid kit, and extra pet food, if you have a pet. Never use a generator or other gasoline, propane, natural gas, or charcoal-burning devices inside the house.

By following these winter preparation tips, you can safeguard your home and family against any weather-related damage and save energy, too.

If you’re considering a new mortgage, contact a reputable mortgage broker to discuss your options and determine the best loan for your situation and future plans.

Safeguard Your Home for the Holidays

December 13th, 2011

Christmas Time The holidays can be a wonderful time of the year. While, the glowing candles, the crackling fires in the fireplaces, and the twinkling Christmas lights can make the season merry and bright, they can also increase your risk of a house fire. Every year, more than 400 Americans die due to holiday-related fires, and 1,000 are hospitalized with injuries.

However, by following these tips you can help protect your family while enjoying this festive season.

If you’re getting a real pine tree for your Christmas tree, avoid trees with dry needles – making it more flammable. Before you place the tree in the stand, make a fresh cut into the base of the tree to enable it to absorb water better. Also, water your tree every day to prevent it from drying out.
If you’re using an artificial tree, make sure that it’s fire-resistant.
Place your tree in a sturdy stand so it doesn’t tip over. The tree should be placed at least 3 feet away from fireplaces, radiators, electrical outlets, portable space heaters and other heat sources. Do not block doorways or exits with the tree.
Check your Christmas lights for frayed or bare wires, cracked sockets, or loose connections – and replace as needed, to prevent a fire or shock hazard.
Don’t connect more than 3 miniature light strings together. Avoid overloading your indoor and outdoor electrical outlets.
Check the rating on your extension cords and don’t plug in more than the recommended wattage. Also, don’t use indoor extension cords outside for your holiday light display, since indoor cords are not waterproof and can cause a fire in wet weather.
Don’t run electrical cords under carpets or tack them up with metal nails or staples.
Unplug all your holiday lights, both indoor and outdoor, every time you are away from home and before you go to bed every night.
Don’t use real candles on your Christmas tree. Don’t leave candles or menorahs burning unattended. Keep them away from anything flammable, such a window treatments, decorations, and paper. Always extinguish all candles whenever you leave home or go to bed.
Each year have your fireplace inspected and cleaned. Use a sturdy fireplace screen when burning a fire. Don’t burn wrapping paper or pine boughs in your fireplace, since embers can float out of the chimney and start a fire elsewhere.
Keep all fireplace mantel decorations, including stockings, away from a burning fire.
Test your smoke alarms to ensure they’re in working order.
Develop a fire escape plan – identifying at least two exits for every room, and practice your fire escape plan with family members.

By following these tips, you’ll ensure that you and your family will celebrate many more holidays to come.

If you’re planning to purchase a new home or refinance during the holidays or in the New Year, contact Grandview Lending. We’ll be a happy to work with you for all your mortgage needs.

SIGTARP Cracks Down on Online Mortgage Modification Scams

December 6th, 2011

House magnification At the end of November, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) shut down 125 online mortgage modification scams advertised on Google, Yahoo!, and Bing according to the National Mortgage News. The targeted scammers used deceptive Web banners and other online search advertisements, promising homeowners, that in exchange for a fee, they could lower the homeowner’s mortgage through the Home Affordable Modification Program (HAMP), TARP’s housing program. Instead, these advertisers or agents were scamming struggling homeowners.

In the most common scheme, homeowners paid an up-front fee for the companies’ assistance to lower their mortgage payments. The advertiser or agent would tell the distressed homeowner to quit paying their mortgage and to stop all communications with their lender. Mortgage payments were then sent to the deceptive company and/or the homeowner’s property deeds were transferred. The homeowners’ financial information was also released. In some cases, these fraudulent companies claimed to be affiliated with the federal government by using a name similar to an actual government agency or by placing a government seal on their website.

In cooperation with SIGTARP’s ongoing criminal investigation, Google and Microsoft, which created Bing and whose technology powers Yahoo! Search, suspended advertising relationships with the fraudulent companies identified by SIGTARP. In addition to stopping all future advertising with these companies, Microsoft also ended advertising relationships with over 400 Internet advertisers and agents associated with these alleged online mortgage modification schemes. Additionally, Google ended advertising relationships with over 500 Internet advertisers and agents linked with 85 of these scams.

SIGTARP’s mission is to investigate and prosecute criminals who defraud homeowners in connection with HAMP. Plus, through education, SIGTARP wants homeowners to protect themselves from becoming potential victims of mortgage fraud.

If you want to take advantage of a HAMP mortgage modification, you should work directly with your lender, a reputable mortgage provider, or through HUD-approved housing counselors. HAMP is a free program. You are not required to pay a fee. You should continue making your mortgage payments directly to your lender, and you should never send your payments to another company. Also, be aware that if someone tells you to stop paying your mortgage or to stop all communications with your lender, these are signs of a mortgage modification scam.