Getting Approved For A Loan

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• Speak to a lender before finding your dream home: It's very important to meet with a lender to determine if you are approved for a home loan and if so, how much. Meeting with a lender prior to looking at homes ensures that you don't fall in love with a home only to find out you are unable to purchase it. Knowing the details of an approval also allows you to search for homes in your price range.
• If your credit history isn't great, still meet with a lender: Even with less than great credit, there still may be options to getting approved for a loan. Take the first step and meet with a lender to determine what your options may be, with great credit or not.
• Know the difference between your credit score and your credit history: Obtaining your credit score and then proceeding to go through with the home buying process may not be such a good idea. Your credit score is important but so is your credit history and it's important to know what your history is before settling on a home. Don't make the mistake of knowing your credit score and then finding your dream home only to find out that your credit history is filled with unresolved bills or errors.
• Don't max out credit cards after being pre-approved: Your credit will most likely be checked right before closing on the home so be mindful of that before making large furniture or appliance purchases for the home.
• Pre-qualification vs. pre-approval: Getting pre-qualified is only the very beginning and does not mean you are officially approved for a loan. Many times, getting pre-qualified can be done over the phone and is only a vague glimpse into your financial situation. Getting pre-approved usually involves filling out an actual mortgage application and taking a more in depth look at your financial picture.

The Biggest Air Leak In Your Home That You Don't Know About

HouseLogic

John Riha for House Logic

Have you caulked all of your windows and replaced any damaged weatherstripping on doors? That's great but the biggest leak in your home is probably somewhere you never thought about....

The largest air leak in your home could be coming from a hole that the plumber makes in the sub floor to create room for the drain assembly at the bottom of the bathtub. Since the drain assembly is so large, plumbers usually cut a very generous hole to make room for connecting the pipes. This large hole is usually left open to the space below.

How do you know if you have this hole?
If your first floor bathroom is over the crawlspace or unheated basement, it is likely that you have one of these giant energy wasting holes in your home.

Is it a big deal?
Having one of these huge holes can waste about as much energy as leaving a window open a few inches all day, every day. Another problem? These holes are big enough for critters to get into your home!

What is the best way to fix the leak?
Plumbers can stuff around the hole with loose insulation but that is a temporary fix since fiberglass insulation sags over time, especially if it gets damp. Here's a better solution:

1. Crawl under the bathroom to look at the drain assembly from underneath.
2. Patch the hole with pieces of foam board that are cut to fit around the pipes and then screw them into place.
3. Seal any remaining gaps with spray foam insulation which only costs around $8 a can.

If you decide to have a plumber do the job instead, it will probably cost about $100-$150 but is worth it so you can know you are both saving energy and keeping unwanted animals out of your home!

Terms Every Seller Should Know

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• Affidavit of title: A written statement that sellers make under oath certifying that they are in possession of the property, and that since the examination of the title on the date of the contracts no defects have occurred in the title. Marital status is also listed here.
• Appraisal: The estimated current market value of a property.
• Assessed value: The value of real estate property as determined by an assessor, usually from the county.
• "As-is": A contract or listing clause stating that the seller will not repair or correct any problems with the property.
• Back on Market (BOM): When a property or listing is placed back on the market after being temporarily removed.
• Back-up offer: When an offer is accepted contingent on the fall-through or voiding of an accepted first offer on a property.
• Bidding war: When two or more buyers compete for a property by submitting higher offers than the first.
• Brokerage: A firm engaged in buying and selling real estate for clients, using brokers and real estate agents to handle the deal.
• Broker's tour: A set time and day when real estate sales agents come to view listings by multiple brokerages in the market.
• Buyer's agent: The agent who shows the buyers the property and negotiates the contract for the buyer through closing.
• Buyer's market: A market condition characterized by low prices and a supply of properties that exceed demand.
• Capital gain: Profit earned from the sale which is above the original purchase price.
• Chain of title: The document that shows the succession of conveyances, from some accepted starting point to the current holder of title.
• Closing: The end of the transaction process, in which the deed is delivered, documents are signed and funds are dispersed.
• Closing costs: Expenses above and beyond the purchase price of a house and land that is paid by the buyer or seller at the completion of the sale.
• Closing statement: A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made and all cash paid out in the transaction.
• Commission: The compensation paid to the listing brokerage by the seller for selling the property, a percentage of which is also paid to the buyer's agent.
• Commission split: The percentage of commission which is split between the real estate sales brokerage and the real estate sales agent or broker.
• Comparable: A property used in an appraisal or comparative market analysis (CMA) report that is equivalent to the seller's property.
• Competitive Market Analysis (CMA): A comparison of the prices of recently sold or listed homes that are similar to a seller's property in terms of location, style and amenities. This is usually prepared by a listing agent for the property's seller.
• Contingency: A provision in a contract that requires certain actions before the contract is binding or the transaction can be finalized or closed.
• Contract for deed: A sales contract in which the buyer takes possession of the property but the seller holds title until the loan is paid. Also known as an installment sales contract.
• Cost approach: Determination of the estimated value of a property that comes from adding, to the estimated land value, the appraiser's estimate of the replacement cost of the building, less any deprecation.
• Counteroffer: An offer made in response to an offer received from the buyer.
• Curb appeal: The visual impact that a property projects from the street view.
• Days on market: The number of days that a property has been for sale on the market.
• Depreciation: A loss of value in property due to physical or functional deterioration.
• Disclosures: Federal, state, county, and local requirements of disclosure that the seller provides and the buyer acknowledges.
• Down payment: The amount of cash put towards a purchase that the borrower provides.
• Dual agent: A state-licensed individual who represents the seller and the buyer in a single transaction.
• Earnest money: The money given as a good faith deposit to the seller at the time the offer is made. Once accepted by the seller, it is held in a trust account until closing.
• Escrow account: The trust account established by a broker for the purpose of holding funds, such as the earnest money, on behalf of the seller until closing.
• Exclusive-right-to-sell listing: A listing contract whereby the owner appoints a real estate broker as his or her exclusive agent for a designated period of time, to sell the property on the owner's stated terms, and agrees to pay the broker a commission when the property is sold.
• Expired listing: A property listing that has expired per the terms of the listing agreement.
• Fiduciary relationship: A relationship of trust and confidence between the real estate agent and the client, as under the terms of a listing contract.
• Flat fee: A predetermined amount of compensation received or paid for a specific service in a real estate transaction.
• Inclusions: Fixtures or personal property included in a contract or offer to purchase.
• Lease option: When a lease gives the tenant an option to purchase the property during a lease term.
• List date: The actual date the property was listed with the current broker.
• List price: The price of a property through a listing agreement.
• Listing agreement: A contract between an owner-seller and a real estate broker to have the broker find a buyer for the owner's real estate in exchange for the owner paying a commission.
• Listing appointment: The time when a real estate agent meets with potential clients to secure a listing agreement.
• Lockbox: A device with a combination or keypad that hangs from the door knob and stores the keys to the property for sale, so that agents can gain access for showings.
• Market value: The estimated price that a property is likely to sell for under normal conditions on the open market.
• Multiple-listing service (MLS): A group of member brokers who agree to share their listing information with one another in the hopes of procuring buyers for their properties more quickly than they could on their own.
• National Association of Realtors (NAR): A national association of real estate agents.
• Parcel Identification Number (PIN): A county or city tracking number for a property.
• Pending: The status of real estate under an accepted contract that has not yet closed its transaction.
• Preview appointment: When a buyer's agent views the property alone to see if it fits his or her buyer's needs.
• Quit-claim deed: A document that releases the grantor/seller from whatever interest he or she has in the real estate. 
• Realtor: A registered trademark of the National Association of Realtors that can be used only to refer to its members.
• Re-list: Property listed by a broker that formerly was listed by another broker.
• Severalty: Ownership of real property by one person only; also called sole ownership.
• Staging: Preparing a home for sale through the neutral but appealing placement of furniture and accessories.
• Survey: The process by which boundaries are measured and land areas are determined; the on site measurement of lot lines, dimensions, and position of a house on a lot, including the determination of any existing encroachments or easements.
• Temporarily Off Market (TOM): A listed property that is taken off the market for a short time.
• Title search: The examination of public records relating to a real estate parcel which determines the current state of its ownership.
• Transaction: The purchase process from offer to closing or escrow.
• Under contract: A property that has an accepted real estate contract between a seller and a buyer.
• Walk through: A showing before closing that permits the buyers one final tour of the property they are purchasing, usually so that they can check for any changes or defects.

Projects That Can Increase Home Value

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• New front door: Replacing a front door with a new steel door costs about $1,162 with a 96.6% return
• Kitchen updates: A minor kitchen remodel costs about $18,856 with an 82.7% return
• Bathroom remodel: The average remodel costs around $16,128 with a 75.2% return. If a remodel is not in the budget, simply replacing fixtures with new brushed chrome ones makes a big difference as does replacing all of the caulking around tubs, sinks, toilets, etc.
• Replace windows: Replacing 10 existing 3 ft by 5 ft double hung windows with insulated, low-E windows runs about $16,798 for wood frames with an expected return of 74%.
• Fresh paint on both the interior and exterior if needed
• Updating hardware-especially in the kitchen and bathrooms
• Add landscaping: Landscaping is a great way to showcase your lawn. Cut down any overgrown bushes and plant a border of small, neutral colored flowers instead.
• Service the systems: Taking care of your furnace, air conditioner, etc will show a potential buyer that you take pride in your home and that it is well taken care of.
• Thoroughly clean appliances, especially the oven and the stove.
• Declutter: Remove any belongings that are not necessary and strive to keep counter tops, vanities, top of the fridge, etc, clear.

10 Houseplants That Improve The Air Quality In Your Home

Bob Vila

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These easy to grow houseplants are a great addition to your home; they bring a touch of the outdoors inside and they help to improve the quality of the air in your home, creating a healthier living environment and elevating your overall mood.

1. Bamboo Palm-These are great for removing pollutants from the air and they grow an average of 10 inches to 15 feet.
2. Dracaena-These are low maintenance, tolerating low humidity, low light, and infrequent watering.
3. Philodendron- These plants excel at freshening the air and they require minimal care.
4. English Ivy- These grow well in pots or hanging baskets and can also grow on a railing or trellis. While they can be aggressive growers, regular pruning will keep them at bay.
5. Spider Plant- These plants are easy to both grow and share, however, they do prefer moderate light and humidity so they do best in bathrooms or kitchens.
6. Peace Lily- These are wonderful for cleaning the air as well as easy to maintain.  They are attractive plants, growing thick and shiny leaves and white flowers.
7. Weeping Figs- These grow 4-6 feet tall and prefer moderate to bright light and humidity. They can be finicky though and do not like to be moved!
8. Golden Pothos- These are a climbing vine with heart shaped leaves and they require little care, preferring low light, low humidity, and low temperatures.
9. Snake Plant- Both low to moderate light and humidity allows these plants to flourish.
10. Gerbera Daisy- Beautiful blooms and green leaves make this plant a popular choice. These are perennials that, with the proper care, can bloom all year round. They grow to be about a foot tall and also make beautiful arrangements for flower vases.

Happy Friday

3 Annoying Mortgage Hurdles And How To Get Over Them

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1. High debt ratio: Even if you have a stellar credit score and lot's of money in the bank, a high debt ratio is a problem when trying to get a mortgage. If your housing payments and your credit obligations are greater than 45% of your monthly income, it will be very difficult to obtain a mortgage, at least without making some changes. If debt such as car payments and payments on credit cards are holding you back from getting a mortgage, take an in depth look at those accounts. Can any of them be paid off in full? If not, see if your payments can be consolidated into a lower payment. Your loan officer will be able to assist you in managing your debt better.
2. When a solution creates another problem: Getting a loan can be frustrating. For example, if a loan officer asks you to provide pay stubs showing your yearly income and last year shows a lower income than previous years, your loan officer may ask you for a letter of explanation about why your income is less. Sometimes these conditions can snowball, making the process slow. If things get complicated, consider cancelling the loan and starting over with very clear directions.
3. Undocumented funds: Even if you are self employed, lenders will still want your funds documented. Any funds being deposited into your account that are separate from your income need to be documented, explained, and sourced in order to be considered loan eligible. If it is possible, try to avoid depositing monies into your bank account that you will be unprepared to document. Instead, try using a different asset account without the deposit activity or try getting gift funds that you can provide documentation for.