Archive for category: Newsletters

Waiving the Home Inspection. A seller may jump at the chance to accept an offer that has no inspection contingency. Although this practice is becoming more common in this seller’s market, there are far too many risks that would be revealed with a professional home inspection. Once it is waived, it essentially ends the negotiation with the seller and all you can do is keep your fingers crossed that the house is in as good condition as it looks. Of course, you could pay $400 – $700 for an inspection prior to purchase, but be warned: you may not win the bid and you’ll have paid to inspect someone else’s new home.

Waiving the Mortgage Contingency. Here’s one to avoid. You want this. A mortgage contingency protects your deposit in cases where you are no longer eligible for a mortgage (lost your job, change in finances, etc.). Another reason is tied to the bidding wars that occur due to lower inventory. Inflated bids move prices beyond the bank’s appraisal, which may force buyers to opt out of the deal. With the mortgage contingency waived, the buyer can lose the deposit.

The financials related to home-buying can be complex and confusing without an experienced mortgage professional. Call me at Westchester Mortgage today at 617-965-1236 to answer any questions you may have.

What Exactly is Spring Cleaning?

It happens every year. The weather warms up and suddenly you notice the neighbors are on ladders cleaning gutters, washing windows and painting doors while others are inside cleaning out closets, dusting old bookshelves and scrubbing the floors on their hands and knees. What is it about spring cleaning that gets the job done better than any other time of year?

A little research shows that spring cleaning goes back for centuries and is often tied to religious holidays and celebrations.

In the Jewish faith, people would rid their kitchens and pantries of leavened bread and any ingredients that were not allowed during Passover. Even crumbs were forbidden, which led to a thorough cleaning of the home.

The Persian New Year, called Nowruz, involves a cleaning tradition called “khooneh tekouni” which means “shaking the tree” wherein the entire house is cleaned from top to bottom.

Christians, during Lent, clean their homes in anticipation of welcoming friends and relatives for their Easter celebration.

Finally, in the days before heating systems, people living in apartments waited until it was warm enough to open windows to wash them, along with beating the dust out of rugs and pouring old mop water out the window.

Whether your motivation is spiritual or simply practical, cleaning your house thoroughly will leave you appreciating your beautiful home even more, while giving you a wonderful feeling of accomplishment. Now break out the vacuum and get to work!

Renting an apartment isn’t always a bad idea, given your financial situation, but sometimes we find ourselves stuck in place without the proper information to get out of the rent rut. Many first-time home buyers have no idea they can qualify for an affordable mortgage. So how does one get out of the rent rut? Here are five ways to get on the path to buying a home of your own.

1. Check your credit score. Your credit rating has a direct effect on your interest rate. Work on improving your credit by paying down credit card debt and making timely payments on your bills.

2. Make a list of your assets. Sometimes people don’t realize they have more than they think. Apart from money in the bank, you can also count as assets items like your 401(k), mutual funds, profit sharing and other financial means.

3. Length of lease. Work backwards from the end of your lease. You may find that you can pre-qualify for a mortgage long before your lease is up. That means you should start this process as soon as possible. If your lease is up soon, you may convince your landlord to go month-to-month or offer a six-month lease to make it easy for you to move when the time is right, without getting locked into another long-term obligation.

4. Measure income vs. expenses. If you make a good salary but have a significant amount of debt that accrues monthly, you’ll need to see how much you’re left with after making your payments. Having a positive cash flow after the bills are paid each month is critical.

5. Ability to raise funds. Do you have the resources to raise funds for your downpayment if necessary? You may have good credit and some money in the bank, but you’ll need to be able to show your ability to pay over time. Barely squeaking by won’t fill the bank with confidence that you can comfortably make your loan payment each month. Look to family for financial support. If that’s not an option, consider borrowing against your 401(k). You’ll want to see what the penalty is for it, but sometimes it’s well worth borrowing against the future to build wealth today. Remember that apart from living in the home you thought you would never own, you’re also making a solid financial investment that could pay huge dividends when you sell it years from now,

Getting out of the ren rut is not always easy, but it absolutely can be done. If you are a first-time homebuyer or know someone who may be ready to buy without even knowing it, please get in touch or ask them to call me at 617-965-1236. I would be happy to answer any questions and give sound advice on how to secure a mortgage without breaking the bank.

Home Improvement Do’s and Don’ts

When it comes to increasing your home’s value, certain projects will instantly do the trick while others are risky and can have an adverse effect on buyers. Here’s a list of do’s and don’ts for home improvement.

Do Remodel Your Kitchen The kichen is one of the first rooms that buyers look at when making a decision on buying, According to HGTV, you can expect to recoup 60%-120% of your investment on a kitchen remodel.

Don’t Go Too Far with Your Kitchen Remodel If you go way over-the-top and your kitchen doesn’t fit with the rest of the house, this can make the other rooms look less impressive.

Do Improve Your Back Yard. Curb appeal from all angles of the house is a huge plus when it comes to selling your home faster. A manicured lawn, proper fencing for pets, and a fresh coat of paint on the garage goes a long way.

Don’t Install an In-ground Swimming Pool Have you looked outside? This isn’t Miami. A new pool can cost as much as $75,000 to install and would be used for only a fraction of the year. Don’t forget about maintenance costs: you’ll need to spend at least $1000 in insurance, not to mention maintenance costs to keep the pool clean and safe for swimming.

Do Install Energy-efficient Windows Energy Star claims that adding Energy Star-rated windows can save you up to $500 a year in heating and cooling costs. This is a big factor to home buyers given the high expense of keeping out drafts in the winter and keeping your home cool in the summer.

The fact is, if you meet with me and you understand that a good rate is available and you can afford it, then you have your answer. Lock in. If a rate gains or loses an eighth, you’re gambling with a number that works for you now, but could slip away slowly.

Think about people who play the lottery, since that’s a topic that’s been in the news. If someone plays for years and finally wins several thousand dollars, has he really won anything, or did he simply break even after years of losing?

When assessing risk, it’s important to look at the big picture. Are you better off buying your home now at a fair rate or do you want to roll the dice and wait? If the rate slowly rises, how much time will you lose before buying your home? Months? Years? Is it worth the wait?

Waiting for a better deal that may or may not be right around the corner–especially when you already have a good deal right now–can come back to haunt you.

My job is to help you make the best decision based on your needs and the current market, among other factors. Call me at 617-965-1236 to talk about your mortgage needs and we’ll discuss whether or not now is the best time for you to buy or refinance your home. I look forward to answering your questions!

If this week’s snow has you wondering what the winter will bring, here’s some insight from The Farmer’s Almanac: “So, what’s in store for this winter? The “Days of Shivery” are back! 
We are forecasting a winter that will experience below-average temperatures for about two-thirds of the nation. A large area of below-normal temperatures will predominate from roughly east of the Continental Divide to the Appalachians, north and east through New England. With a combination of below-normal temperatures and above-normal precipitation the stage will be set for the Midwest and New England to receive lots of snow.”

If this week was any preview, you’ll need to be ready for a snowy few months ahead. Here are a few tips to handle the weather:

1. Make sure the kids are properly layered with warm clothing. Keep pets indoors.

2. Buy a real snow shovel–not the plastic one on sale that is useless when snow turns to ice.

3. Weather-strip doors and windows.

4. Have ice melt and sand to keep walkways safe.

5. Repair roof leaks and keep branches trimmed if they present a danger to your home.

6. Insulate water lines along walls so pipes don’t freeze.

7. Install storm windows or cover in plastic from the inside.

8. Have your chimney and flue inspected to avoid fires.

9. Have a plan for snow removal if it’s too much for you to handle.

10. Watch for elderly residents. They are less likely to detect drops in temperature and more likely to develop sickness.

Let’s hope The Farmer’s Almanac is wrong, but from what we’ve already seen a few days before the official start of winter, it’s better to be safe than sorry. Stay warm!

At the center of the storm is the Patient Protection and Affordable Care Act (PPACA), also known as the Affordable Care Act or ObamaCare. No matter how you refer to it, this standoff is causing a ripple effect that could impact the purchase and refinance of your home.

While many predict the short-term effects to be minor due to a bounce-back period which typically follows a shutdown, your home-buying plans may be put on hold until the PPACA issue is resolved.

The longer-term effects could potentially make loans harder to qualify for, which could shut certain home buyers out of the market. In addition, in an unstable economy, falling home prices could push some mortgages back under water, which could effect the ability to refinance.

These, of course, are worst-case scenarios we hope won’t happen. The quicker the government goes back to work, the less the chance for major ripple effects.

Things seem to change from day-to-day during this crisis. For the latest information, please contact me at 617-965-1236. I’ll be glad to answer any of your questions and give you the advice you need to successfully secure your mortgage.

Using the Whole Pumpkin

You’ve picked the perfect pumpkin from the patch for the ultimate Halloween jack-o-lantern. Your top-notch carving skills yield a scary ghost-face that will be the envy of all your neighbors.

But what about the rest of the pumpkin? Have you simply gutted the contents and kept the the outer part for your jack-o-lantern? If so, you’re wasting more than you think.

So what can you do with a bowl full of pumpkin insides? Plenty! Let’s start with the obvious and go from there.

1. Pumpkin pie. Here’s the traditional recipe for the ultimate seasonal dessert, from Martha Stewart.

2. Pumpkin bread. If you love to bake bread, Alton Brown’s recipe is a winner.

3. Pumpkin seeds. Skip the mixed nuts at your next party and try this quick and easy recipe for sweet and salty pumpkin seeds, courtesy of Real Simple magazine.

4. Pumpkin soup. Here’s Criesta Comerford’s special recipe from Oprah’s magazine. Ms. Comerford has been the executive chef for both the Bushes and the Obamas. Gee, I wonder if she’s working during the shutdown? Do the president and first lady find her to be an essential employee or can they just wing it with a few groceries they might have picked up at the local Safeway?

5. Pumpkin wine. Tired of typical red and white wines? Ready for a challenge? Make your own pumpkin wine from scratch. It can be done! All you need is a pumpkin, an acid-tester and a hydrometer. What kitchen doesn’t have those?

6. Pumpkin skin cream. All those years of carving your pumpkins and tossing the insides could have been spent rejuvenating your skin. According to the website, you can spread the leftovers on toast for a delicious snack. Seriously. Here’s how.

This is a huge investment. You know what you want to spend, but the other bidder has increased her bid. It’s over your budget limit, but you get creative and justify the extra cost and run some numbers in your head. Emotionally, you think you can swing it, but in actuality, you’ve created more debt than you had imagined.

You’ve won the bid, but in the end, you may have lost the war.

Did you know that your bank assesses your home’s value based on the the previous three months of similar home sales? When you engage in bidding wars and artificially inflate the cost, the bank will not factor the new cost into your loan. Therefore, you are responsible for potentially thousands of dollars you hadn’t intended to spend. This money is due to paid by you at the closing. Can you afford to fall deeper into debt after making quite possibly the biggest investment of your life?

Don’t be a casualty of the bidding wars. Sometimes all it takes is some sound advice from an experienced, objective mortgage professional–someone who won’t ever get caught up in the emotion of making such an important purchase. Call me at 617-965-1236 if you’re even considering purchasing a new home. I’ll give you all the critical information and advice you need to make the decision that works for your budget and your life.

Late Summer Vacation Tips

More and more people are taking their vacations in the late summer. If you’re one of the many vacationers packing for a trip before Labor Day, here are a few tips to make sure you can enjoy a stress-free break from everyday life.

1. Make a List of Errands. You know that feeling you get just as you head to the hotel pool area when you realize you forgot to buy sunscreen? Make a list of errands you need to run and you’ll be better prepared.

2. Pay Bills. No one likes to come home to a house with no electricity. Paying your bills ahead of time will help you create a better spending budget for your trip and give you peace of mind knowing all your bills are current.

3. Hold the Mail. Did you know a call to your local post office will hold your mail while you’re away and your letter carrier will deliver everything upon your return. No need to bother the neighbors to check your mailbox. If you have a newspaper delivered, be sure to stop delivery while you’re away.

4. Clean Out the Fridge. Remember that delicious leftover salmon dinner you planned to reheat for lunch the next day? It’ll be black (or maybe green) by the time you get back, unless you toss it along with other perishable foods.

5. Who’s Watching Fido? People can be so consumed with getting out of town, they sometimes for get about their beloved pets. Make arrangements with a responsible person to make sure your pets are cared for. There are also many reputable dog-sitters and kenneling companies that can allow your pets to have a vacation of their own.

6. Clean Up. In the frenzy involved in packing for the parents and kids, your house may look like a mini tornado passed through. The last thing you’ll want to do when you return from a relaxing excursion is to clean up a messy house. Also, keep an eye on things that could catch fire. Clean out your lint traps, unplug appliances and shut down your computer.

6. Lock Up. It’s not just your front door that needs locking. Go through the house and check your windows as well as the bulkhead door leading to your basement. Knowing your home is properly secured will help you enjoy your vacation without the stress and worrying–and that’s what vacations are for!