Divorce is rarely a sudden action. Removing oneself from what was once a life-long commitment often takes time and consideration. It also requires planning and strategy which generally takes place with an attorney who specializes in divorce and family law.
Next, it’s important to contact a mortgage professional. There are many questions to ask along with information to gather and understand.
You’ll need to know the answers to questions like these:
- Can I stay in my home? Will my spouse move out?
- Should I buy a new home?
- Does my downpayment come from my assets?
- Should we sell the house and split the money?
- How much debt have I accrued?
- What’s my debt-to-income ratio?
- What’s my credit score?
After answering these questions, you’ll need to get your name off your current mortgage. This is especially important before securing a mortgage for your new home, even if you’re divorcing and planning to sell. If your name is still on the mortgage in your current home, you may be denied approval for a new one.
In addition, the closing date on your current home must occur before the date of the purchase of your new home. Be careful. You’ll risk getting approved if these timelines are not followed.
Making it through the emotionally difficult process of divorce is hard enough without having the right people in your corner. Please contact me after you’ve met with your attorney — or recommend me to women who are planning a separation or divorce.
Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to help guide you through the process. I look forward to speaking with you.
August’s Home Improver
Which Kitchen Trash Can?
In the good old days when you needed a kitchen trash can you’d go to the supermarket or local hardware store and grab a plastic can and cover and a box of tall kitchen garbage bags. Done! These days, that same simple need is now a quest for the perfect receptacle for your kitchen.
Looks, location and functionality all need to be considered. Plastic or metal? Inside or outside the cabinet? Mechanized cover or old school step-to-open lid? So many choices!
Once you make up your mind, there’s a bigger issue. We know, you thought you were done, but there’s more. Here’s the deal: It’s less about the look than the lid. Covering your trash not only stops odors from spreading, but it also prevents insects from landing on bacteria and then happily spreading it throughout the rest of your house. Yes, people, this is a thing! Your neighbor the germaphobe isn’t as crazy as you thought, now is she?
Those hidden trash cans that hang off the inside of a cabinet door rarely have covers. Your can might be out of sight, but left uncovered it’s quietly inviting flies, ants and mice to feast on whatever you’ve discarded.
So take our advice when it comes to choosing the right kitchen trash can. Pick the style you like most, but remember that an uncovered can is a bacteria-spreading deal-breaker.
June’s Home Improver
DIY: Get Rid of Fruit Flies
|Make a do-it-yourself fruit fly trap for pennies.|
People sometimes ask me why they should use Westchester Morgtage instead of one of the big banks. It’s a fair question, with an answer that goes beyond great service.
The lending industry bases their approval decisions on the following three criteria. Banks tend to take a conservative approach but mortgage brokers have more flexibility to offer their clients.
1. Credit score. Are you paying your bills on time? Have you defaulted on a credit card or fallen behind on your car payment? The bank will determine the risk of lending you money based on your previous bill-paying history.
2. Income. The bank will take a look at your income and assess your ability to repay both your existing debts and your future expenses. You’ll need to earn enough for them to feel confident in your ability to pay all your expenses while comfortably paying your mortgage premium each month.
3. Equity. This is your collateral available to secure the mortgage. The bank will offer you better rates when you pay a higher amount on your downpayment.
If the bank feels your credit history, income or equity are questionable, they will decline your mortgage application. So now what?
Here’s where an experienced mortgage professional can get a “yes” when the banks say “no.” First, I will get your paperwork and documentation organized up front. If you are divorced or in the process of divorcing, it is critical to show the divorce decree or separation document.
My job is to understand all your income sources and represent them properly for the underwriter. I also look for additional income. Alimony, child support and bonus income are sometimes left off the application and could very well be the difference between the approval or denial of the mortgage.
I dig much deeper than the banks for my clients. If you want the best chance to be approved for a mortgage, starting with Westchester Mortgage is the best path to take. Do you know someone who is thinking about using a bank for their mortgage? Please have them call me so I can help them gain every advantage in securing a mortgage approval.
April’s Home Improver
Grimebusters: Silly Putty and Alcohol
|That is one grimy keyboard. Grab your silly putty and alcohol.|
It’s tax time already. Although we get a few extra days with this year’s tax deadline falling on April 18th, we’re only a month away. Today we’re discussing the tax advantages and incentives that come with owning a mortgaged home.
If you have recently purchased or are planing to buy a new home, you may not be aware of the significant tax breaks that come from your mortgage and your home itself.
One of the largest tax breaks for homeowners is the
deduction of interest paid for the year. By now, you should have received documentation from your lender indicating the total interest you’ve paid.
Have you recently refinanced? There is a tax benefit. Because you pay more interest than principal in your first few years of a new mortgage, your deductions are higher.
Your property taxes are also a major deduction, especially if you are in a highly taxed city or town. This also applies to homeowners without a mortgage to pay.
Home improvement costs may lead to additional tax breaks. Look for the Energy Star logo on new appliances in your home. Energy-saving water heaters, windows, doors and more may give you a bigger tax break than you had imagined. Check out the Energy Star website to see which changes to your home are tax deductible.
I strongly recommend you meet with a tax professional to understand the opportunities for tax deductions and learn of other breaks you may qualify for as a homeowner. Need a recommendation? I have someone I trust who can help. Call me at 617-965-1236 for the referral or to answer any mortgage-related questions.
Ready to purchase a new home or refinance the one you own? Please get in touch and I’ll be happy to help guide you through the process. I look forward to speaking with you.
March’s Home Improver
When Should I Seed My Lawn?
A beautiful, green, well-kept lawn makes your home more attractive to potential buyers while becoming the envy of your neighbors who struggle with patchy grass that just can’t compete.
Here are some grass-growing secrets that can help you upgrade your home’s curb appeal.
1. When is the best time to seed my lawn? You would think it would be right now, with the first day of spring just a few days away. Typically, the best time to seed a lawn is in the fall. This is due to cooling temperatures and soil that isn’t too moist from melting snow and seasonal rains.
2. What problems may I run into by seeding now? Cool soil temperatures can slow or prevent seed germination. Springtime weeds can sometimes be a cause for concern.
3. Can I use a weed killer? Bad idea. Liquid and granular weed preventers can prevent germination and kill immature seedlings. In effect, you’re killing weeds and your grass at the same time. The rule of thumb is to work on weeds only after your young grass has been mowed at least four times.
4. What are my options for spring seeding? First, test your soil. Most turf grasses work best with neutral soil. Ask your landscaper to test it before planting. If it’s a DIY project, you can buy a soil test kitfor under $25. Also, be sure to choose a grass that works best for New England climate and sun exposure.
5. How do I improve my lawn quickly before putting it on the market? Calling a professional is always recommended. An experienced landscaper has the knowledge to get the seeding job done with a better chance of success than a homeowner who is not working in lawn care on a daily basis. It may be well worth the investment if your current lawn is an eyesore and you’re getting ready to list your home.
6. What about sod? If you need a lawn in a hurry, sod is the way to go. Although the initial cost is higher and lots of watering is critical, your instant lawn is installed free of weeds and can be walked on very soon after it’s planted.
Just because you’ve found the home of your dreams doesn’t mean you’re going to move into it. Many factors including price, location, inventory and time of year may bring in multiple offers from eager buyers. So how can you gain an advantage over the competition? Here are three helpful tips:
1. Pre-approval. Before you even start looking for homes, meeting with your mortgage professional is critical. A pre-approval means you have provided documentation of income and assets. This is different from pre-qualifying, which is typically done in conversation wherein you talk about your income and assets. It’s virtually meaningless until you back up what you say with the paperwork for pre-approval. Also, you should know how much you’re willing to put down. The stronger the downpayment, the more confidence the seller has in you and your offer.
2. Waive the Home Inspection. This saves time and money, but is it smart? There is a way around it. Bring a home inspector to the Open House. While you’re checking out the size of the bathroom and imagining your furniture in this house, your home inspector is walking around checking for things like termite or water damage, asbestos, knob-and-tube wiring, heating and AC issues and more.
3. Write a Personal Letter. You may not realize it, but selling a home can be just as stressful to the owner as it is to the buyer. By writing a personal letter, you are making an emotional appeal to a seller who is probably feeling sentimental about the home. Talk about how you would want to raise your family in this home just as they did; that you want your kids to benefit from attending the same school as their kids. Make a genuine appeal that ties your future to their past and that just might be what tips the scales in your favor.
Of course, there are no guarantees. But these suggestions have proven successful for many happy new homeowners. For more ideas, please give me a call at 617-965-1236.
February’s Home Improver
Re-painting Kitchen Cabinets
Replacing your kitchen cabinets can be cost-prohibitive. But what can you do when your formerly new cabinets have lost their looks over the years? If you’re up to the task, painting your cabinets can make them look like new for much less than the cost of replacing them.
Here are step-by-step directions:
1. Remove the cabinet doors and hardware. (Tip: Put a note on each one indicating location so they’ll go back in the right places.)
2. Clean all cabinet surfaces and allow them to dry completely.
3. Sand down the surfaces enough so that the paint adheres and lays flat.
4. Apply primer-sealer first. Let to dry, before painting.
5. Apply paint with a spray, brush or roller (for flat surfaces only). Let it dry. Put hardware back on doors and hang them on the cabinets.
Remember to use a drop cloth and tape off the areas around the cabinets. If you think a project like this is beyond your skill set or patience, hiring a professional painter will still cost significantly less than bringing in all new custom cabinetry. Good luck!
With the Powerball jackpot now over a billion dollars, many people purchasing tickets have fantasized about how incredible life would be if they somehow managed to beat the 292-million-to-1 odds and won the biggest lottery payout ever.
It would truly be amazing and it would certainly present opportunities that the average person could never imagine. But don’t be discouraged if/when you don’t win. After all, wealth and happiness are two very different concepts.
A recent article in the Wall Street Journal discussed a survey of divorced women and their relationship with money. The majority of the women polled felt that they were more secure about their finances than when they were married.
This may seem incongruent, given that most of the women left a two-income household. Now, with less money and more responsibility, they feel more content.
How can this be?
The answer is control. Many women do not have enough of a say regarding their finances while married and they have little control over their spouse’s spending. The author went on to point out a poll that mentions financial issues as the leading cause of divorce, ahead of compatibility. It makes sense that divorced women with less money but more control over their spending could very well be more content than they were in their marriage.
Do you have a friend or relative who is newly divorced or considering the possibility? I can give her expert guidance on securing the mortgage that works best for her.
For those of you who are already content but want more, there’s always Powerball. Good luck!
If you have questions about mortgages or you are preparing to purchase a new home, please get in touch and I’ll be happy to help guide you through the process. I look forward to speaking with you.
January’s Home Improver
Marie Kondo’s Tips for Tidying
Even though we’re still a couple of cold and snowy months away from spring cleaning, your home may look its most cluttered in the winter. Boots, bulky coats and snow shovels are all within reach when they are normally in storage most of the year. Snowed-in kids break out their toys and games and many don’t put them back as neatly as they found them.
Marie Kondo is the author of the bestselling book, “The Life-Changing Magic of Tidying Up.” It has been at or near the top of the nonfiction chart for over a year. Here are some of her rules for decluttering:
- Declutter not by room, but by category. Start with the easy stuff (old documents) and proceed to the things that are more difficult to part with (photos and mementos).
- Only keep items that “spark joy.” Ask yourself that question when you pick up each item.
- Rather than looking at what you want to get rid of, choose only the items you need to keep. Are they truly necessary?
- Fold and store things carefully in drawers to maximize space. There are many YouTube videos demonstrating her technique.
Have fun decluttering and tidying your home!
On October 1, 2015, the Consumer Financial Protection Bureau created two new forms designed to protect the home buyer by streamlining two federal acts regulating the mortgage process. The TILA RESPA Integrated Disclosure (TRID, for short) is now required as part of the closing process to:
The first form (Loan Estimate) replaces the Good Faith Estimate and the Truth in Lending disclosure. It details the mortgage terms, including key features, costs and risks of the mortgage, in clear language that makes it understandable for the buyer.
The second form (Closing Disclosure) replaces the HUD-1 Settlement Statement. It is provided three business days prior to the closing and may not be modified once it is submitted. The new form is designed to provide any and all disclosures that will help clarify all of the costs involved in the purchase of the home. If there are changes after the the Closing Disclosure form is sent, a new three-business-day waiting period applies.
Orchestrating a closing involves a number of variables, including coordinating the closing with the real estate agent and the closing attorney. While TRID protects the buyer, it can cause scheduling delays if the mortgage lender is not managing both the financial obligations and the timeline.
TRID can be a beneficial addition to the mortgage and closing process, but it takes a dedicated mortgage professional to manage it so there are no unexpected delays that affect timing — this also includes the scheduling of your moving company, delivery of appliances, transfer of utilities, time off from work, and more.
If you have questions about TRID or you are preparing to purchase a new home, please get in touch and I’ll be happy to help guide you through the process. I look forward to speaking with you.
December’s Home Improver
Cleaning Drapes, Curtains, Shades and Blinds
If you’re planning a New Year’s Eve bash and you want everything in your home to look beautiful for your guests, you may want to have a look at your drapes and curtains. When was the last time you had them cleaned? Drapes, curtains, shades and blinds are sometimes overlooked in terms of general housecleaning.
The cleanliness of your window coverings depends on several factors. More frequent cleaning is required for homes that include pets and cigarette smokers. Other factors include dust and dirt entering from drafty windows along with heating and air-conditioning vents, soil kicked up from vacuuming and dust particles falling from ceiling fans.
For the most part, drapes should be cleaned every two years. The best way to tell is to simply have a close look or shake them out in sunlight to see how much dust and pet dander has built up.
If your drapes must be dry-cleaned but you don’t want to go through the drudgery of taking them down and driving them over to your local dry cleaner, there are companies that do in-home cleaning of fine fabrics.
Your curtains, especially if they are machine washable, should be cleaned every six months to a year. Have a look at dusty shades and blinds. Shades are easily cleaned, but discoloration from the sun may be the reason you have them replaced. Blinds, on the other hand, should be vacuumed with the brush attachment or wiped clean with a feather duster. Fabric blinds should be dry-cleaned.
Keeping your window coverings clean adds a freshness to your home that you may not notice until after you clean them. After years of hanging, they collect more dust and dirt than you may have realized.
Debt is a four-letter word. Many people won’t talk about it, much less take it on, but you may be surprised to know that debt can be a good thing.
Millennials hate debt, probably because they are drowning in it, primarily from high college loans, auto loans and high-interest credit cards. The debt they have amassed at a young age has kept them from buying homes. Instead they’re opting to rent or just live with mom and dad longer than expected, which is leading to a later start on marriage and family.
Debt is not exclusively generational; it’s cultural, too. Many people who come to the United States are surprised by the “debt culture” here. They tend to avoid debt at all possible costs. Many immigrant families don’t use credit or debit cards. Everything is paid in cash. They rent, save money efficiently and pay everything off quickly. A loan? That’s another four-letter word they avoid.
But there is a difference between “good” and “bad” debt. Anything that depreciates over time is considered bad debt. An auto loan, for example, may be necessary, but your car will be worth much less than what you paid for it at the end of the loan. A home loan, on the other hand, is an investment. A manageable mortgage will leave you with a higher property value on the day of your final mortgage payment. Because property values always increase over time, real estate is one of the safest investments you can make.
Mortgages allow for the redistribution of financial assets over time. They free up cash to pay for those life events that cause those poor young Millennials to struggle in the first place. With interest rates at just under 4%, a home loan is the cheapest money you can borrow.
When it comes to debt, it’s all about perception. Knowing the difference between good and bad debt is a start. I can help you or your children find the right mortgage that will begin what may be the most important investment of their lives.
Please get in touch and I’ll be happy to help guide you through the process and answer your questions. I look forward to helping you.
November’s Home Improver
Tips to Keep Your Home Out of Probate
Guest Article by Lauren E Miller, Esq.
You may have heard stories before of homes that are “stuck” in probate. But what does this mean? What is probate, and should you avoid it? If you are interested in learning the answers to these questions, then read on!
Probate property is any property that is held in your sole name at death. After you pass away, probate is the process through which your assets are transferred to your named beneficiaries (if you have a will) or to your heirs (if you pass away without a will). In the case of your home, the way it is titled on your deed determines whether or not your home is a probate asset.
So what are some examples of ways to title your home that will not avoid probate?
1. Your sole name. If your deed has your name only, and you pass away, your home becomes a probate asset.
2. Multiple names as tenants in common. Unlike “joint tenants,”ownership as “tenants in common”does not include the right of survivorship. For example, let’s say that you and your sibling have equal ownership in a home that you inherited from your parents, as tenants in common. If you die, your fifty percent share will go to your beneficiaries or heirs, and not to your sibling. This means that your 50% share must go through probate.
Here are some ways to title your home that will avoid probate:
1. Joint tenants with right of survivorship. This title allows a property to pass directly to the other person(s) named on the deed.
2. Tenants by the entirety. This type of ownership functions similarly to joint tenants, but is a special title only allowed for married couples. Tenants by the entirety ownership also takes advantage of certain asset protection rules created specifically for married couples.
3. Title in the name of a trust. The are various types of trusts, many of which allow your assets to bypass the probate process. If your title is in the name of the trustee of your trust, your home can avoid the probate process. Please note: simply having a trust does NOT mean that your house will avoid probate, your house must be placed into the trust before you pass away. If you have questions regarding a specific trust, please consult an attorney.
Okay, so now you know ways to title your home to avoid probate, but why should you care? Probate is a long and costly process. Most probates in Massachusetts take a minimum of one year. Any assets that must go through probate are inaccessible to the heirs or beneficiaries for months after you have passed away, and real estate cannot be sold right away either.
Now that you understand the basics of how probate works for real estate, ask yourself: Is my home titled to avoid probate?
If you have questions regarding keeping your home out of probate, please contact Lauren E. Miller, Esq., of Ladimer Law Office, PC at (508) 620-4565 or at firstname.lastname@example.org.
Buying or selling a home is stressful enough without worrying about the difference between assessments, appraisals and CMAs. One might think these terms are synonymous, but they’re not. In fact, they are very different. Let’s have a look at the distinction and clear up some confusion among these three terms.
A home appraisal is created by a licensed real estate appraiser to give an unbiased evaluation of a home’s value. This is used to set a fair market value on the home. This is different from a Comparative Market Analysis (CMA), which is provided by a real estate agent. For financing purposes, appraisals are used–not the tax assessment or CMA.
Recent sales data and knowledge of the local market are factored into the CMA which helps determines the value. The real estate agent then compares the property to similar homes in the area and provides a biased evaluation, in favor of the seller.
A tax assessment is set by the city or town. Your taxes are used to pay for local government, public safety, general infrastructure, public schools and libraries. Local governments may update assessments when market conditions or revenue need to change.
The tax assessment is based on average market values.
Now here’s where the confusion comes in. Assessed values have typically come in lower than appraisals, which causes confusion and for good reason. Here’s why:
The data gathered to estimate the value of your home that you plan to sell in 2016 is based on sales from 2014. So the tax assessment is based on data that’s two years old. That delay in data is why your assed value is showing a lower number than what your appraiser determines.
OK, so now that we’ve got that part out of the way, here’s another point of confusion: the tax assessment for Fiscal Year 2016 runs from July 1, 2015 through June 30, 2016.
As the climate of the real estate market changes and rates begin to rise again, the tax assessment may start catching up to the appraised value. If you’re thinking about buying a new home, this may be the best time to make the investment and secure a mortgage at a low rate.
I hope this clarification helps clear up the confusion. Need more help selling your old home and buying a new one? Please get in touch and I’ll be happy to help guide you through the process and answer your questions. I look forward to helping you.
October’s Home Improver
Trick-or-Treat! What Should Kids Eat?
If you’re a Halloween traditionalist, you’ll expect your kids to finish making the rounds in the neighborhood with a bag filled with chocolate bars, candy, bubble gum and other sweet treats. You’ll also expect them to over-indulge in their plunder until they either reach a frenzied sugar high or they just make themselves sick. That, unfortunately, is the secret trick hidden in the treats.
So how do you temper the sugar rush with something that won’t spike their insulin levels to unnatural highs — without being the family that gives out boring treats? Here are some suggestions.
1. Packaged Foods. Almonds, peanuts and others (ask if allergic before handing out). Mini raisin boxes. Packaged crackers and cheese. Granola and breakfast bars. Juice boxes and fruit rollups (with real fruit).
2. Art Supplies. Crayons and coloring books, stickers, colored pencils, character-shaped erasers, stamps (not postage!), mini colored markers.
3. Toys and Fun Stuff. Snap bracelets, trading cards, bubbles, silly putty, fake eyeballs, spiders, bats, slime and other spooky stuff. Rubber balls, wax vampire teeth, yo-yos and wind-up toys.
Have a Happy and Safe Halloween!
321 Walnut Street #412
Newtonville, MA 02460-1927
Mortgage Broker MB #272780
Deborah Siegel NMLS MLO #13417