Category: Helpful Hints

October 23, 2015

How to Renovate Your Home without Exceeding Neighborhood Value

by Courtney Soinski

Before you decide to renovate your home, it’s important to understand that not all renovations will increase the value. It is certainly possible to over-remodel, and you don’t want it to exceed the value of your neighbors’ homes. Here are some ways to get the highest return on investment (ROI) possible when the time comes to sell your home.

Projects always worth your while

shutterstock_138891047There are specific renovation projects that can deliver the greatest effect on your ROI, regardless of the real estate market’s current state or the value of surrounding homes. According to real estate expert Robert Stammers in a recent article in Investopedia, these can be projects such as an addition of a wood deck, kitchen and bathroom upgrades as well as window replacements.

shutterstock_117312145Factor in location

A common mistake that homeowner tend to make is renovating their homes to the point where it exceeds the value of surrounding homes. The fact of the matter is that people look in a specific neighborhood because of its proximity to nearby businesses or recreation and it’s in their price range. If improvements done to your home are much higher than homes around you, it’s unlikely that they’ll want to pay more for those improvements, even if they’re interested.

Make improvements that will add value over time

Some home improvements, like upgrading the technological features of a home, will not have a lasting impact, and may even bring down the home value. These types of renovations are at a higher risk of becoming obsolete and outdated as years pass. Technology and styles change all the time, so focus on improvements that are less likely to be impacted by time and are worth your investment.

Renovations that will pay you back

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Regardless of whether a homeowner is planning to sell or not, the ultimate objective of taking on a renovation is to revel in the enjoyment you get from living in an updated home while gaining considerable profit from that investment. There are many tools out there that show the kind of profit you can expect from specific home remodels. A perfect example of this is Remodeling magazine’s “Cost vs. Value” annual report.

Here are some of the findings from the 2015 Remodeling Cost Vs. Value report:

Projects that deliver the highest percentage of return on investment

  • Entry door replacement (steel): 101.8%
  • Garage door replacement: 88.4%
  • Siding replacement (fiber-cement): 84.3%
  • Siding replacement (vinyl): 80.7%
  • Deck addition (wood): 80.5%

Renovation projects that deliver the lowest percentage of return on investment 

  • Sunroom addition: 48.5%
  • Home office remodel: 48.7%
  • Master suite addition: 53.7%
  • Garage addition: 54.7%
  • Bathroom addition: 57.8%

SOURCE: http://blog.realestatebook.com/2015/10/08/how-to-renovate-your-home-without-exceeding-neighborhoods-value/

September 29, 2015

Consumers Beginning to Embrace Smart-Home Technology

shutterstock_180292502From wireless speakers to automated vacuum cleaners, advanced “smart” devices are becoming increasingly common in the homes of Americans, aiming to make life simpler for all. However, language counts for a great deal when it comes to consumer attitudes and familiarity; nearly two-thirds (64 percent) of Americans say they don’t know much about smart-home technology, while Nielsen’s Connected Life Report—a bi-annual study of consumer needs, preferences, attitudes, and behaviors around new and emerging technologies related to connected cars, homes, and wearables—finds that just over half of household decision makers (53 percent) say they know what connected home technology does.

This confusion may, however, be rooted in category headings more than in specific products. When asked generically about smart-home technology, just 7 percent of Americans say they own such a device; however, when presented more specifically with a list of devices from the smart-home category, 34 percent of Americans—nearly five times as many—indicate they already have at least one in their home. This disconnect signals a need for consumer engagement and education in this budding industry.

These are some of the results of The Harris Poll® of 2,225 adults surveyed online between May 20 and 26, 2015. Full results of the study, including data tables, can be found here.

Self-described early adopters are more likely than their counterparts to have one or more devices in their homes (59 percent vs. 37 percent mid-adopters and 20 percent late adopters).

The most popular devices currently owned are wireless speaker systems (17 percent), smart thermostats (11 percent), and smart/wireless home security and monitoring systems (9 percent), with many of the same devices making repeat appearances atop the list of devices Americans would consider for future purchases: smart thermostats (40 percent), smart lighting (37 percent), wireless speaker systems (35 percent) and smart/wireless home security and monitoring systems (35 percent).

Consumers appear hesitant to purchase certain devices despite respectable awareness levels, indicating there may be ample room to better communicate the benefits of these devices. Nearly half (48 percent) say they’ve heard of smart-home security systems and don’t want one, while nearly six in ten (58 percent) say the same about domestic robots and 46 percent say the same for smart/connected refrigerators.

On the other hand, for several devices, the largest barrier appears to be awareness itself. Over half (51 percent) have never heard of water detectors that connect to Wi-Fi and 42 percent say the same for smart/connected laundry machines.

With 88 percent of Americans believing these devices are too expensive, it should come as no surprise that, when probed on potential “tipping points” when they will be likely to consider purchasing such technology, the highest percentage by a wide margin (37 percent) say they will consider purchasing smart-home technology when it drops to a price they think is reasonable. Another 9 percent will wait until the “bugs” have been worked out and 12 percent will never consider buying smart home technology.

Matures and Baby Boomers are more likely to say they’ll never consider buying smart-home technology compared to their younger counterparts (20 percent Matures and 17 percent Baby Boomers vs. 10 percent Gen Xers & 6 percent Millennials).

Notably, two in 10 (21 percent) Americans are not sure at what point they would consider purchasing this kind of technology—further signaling confusion in this still-new market segment.

Potential Perks

A majority of Americans believe there are perks for homeowners in smart-home technology, with over six in ten (61 percent) saying household devices that can connect to the Internet are good for homeowners.

Vast majorities of adults feel it’s important that smart-home technology saves money (91 percent), conserves energy (90 percent), helps keep them and/or their family safe (89 percent), and protects property from theft/vandalism (88 percent).

However, far fewer Americans believe the technology currently offers these benefits. Just half (50 percent) believe the technology currently helps save money, while six in ten or fewer say smart home technology currently conserves energy (59 percent), helps keep them and/or their family safe (55 percent), and protects property from theft/vandalism (57 percent).

Three quarters of Americans also feel it is important that this technology save them time (78 percent) and offer the ability to adjust to their preferences and behaviors (74 percent), while just 42 percent each say the technology currently offers these benefits. Americans are nearly split on whether it’s important that the technology enable them to better care for pets (55 percent important vs. 45 percent not important) and reducing the likelihood of running out of household products (53 percent important vs. 47 percent not important), which is good considering less than two in ten feel the technology offers these benefits (17 percent and 18 percent, respectively).

Among pet owners, 71 percent feel it’s important that smart-home technology enable them to better care for their furry, scaly or feathery friends while only 22 percent believe the technology currently offers this benefit.

Regardless of the status of these current and potential benefits, many Americans believe smart-home technology will start to have an impact on them within the next five years. Over half (51 percent) say smart-home technology will improve their quality of life within the next five years and 43 percent say it will have a big impact on how they manage their home within the next five years. Education efforts focused on more clearly communicating and demonstrating the benefits of these devices may help to drive further consumer excitement.

Remaining Questions and Concerns

While it may be clear what the expected and perceived benefits are, with 78 percent of Americans saying they expect newly built homes to include smart-home technology within the next five years, it’s no surprise that some concerns still remain. Seven in ten Americans believe smart-home technology makes it easier to steal personal information/data (71 percent) and wonder whether smart-home devices will perform basic functions as well as their traditional counterparts do (70 percent).

Despite the concerns and questions that exist, most Americans clearly believe this technology is on its way and here to stay, with less than three in ten (27 percent) doubting that smart technology will catch on.

Source:http://blog.realestatebook.com/2015/09/23/consumers-beginning-to-embrace-smart-home-technology/

September 23, 2015

What to Do Before the Appraiser Arrives

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Are you ready to refinance or sell your home? If you answered yes, then it’s time to get your home appraised in order to define its true value in the current real estate market.

How does a home appraisal work?

On the day of your scheduled visit, a licensed home appraiser will evaluate your home by going from room to room, assessing its condition. He will also take upgrades into account and do a comparison of other homes in your neighborhood. In the end, you’ll get an appraiser’s report. If you’re selling, you can use this document to decide your asking price. If you’re refinancing, you’ll now be able to determine how much equity you have.

Before the appraiser comes knocking at your door, however, you need to be prepared. The higher your appraisal value the better, so we have put together a list of tasks to complete beforehand.

Make any repairs necessary

If your home needs any small repairs at the time of the appraisal, that will have a negative impact on your outcome. Make sure all door latches and handles work properly, carpet does not look worn out (replace if necessary), plumbing is operable, and all windows work effectively. Not fixing these can make your home look older than it really is, so do everything you can to avoid that.

Update light fixtures

If the light fixtures throughout your home are worn and outdated, then it’s a good idea to update them before the appraiser arrives. Don’t spend too much in this category, though!

Freshen up walls

Depending on how long you’ve lived in your current home, there are probably some chips and holes in your walls. They may also be a little faded. Freshen up these areas with some spackle and a new coat of paint.

Enhance curb appeal

The front of your house is the first thing the appraiser will see when pulling into the driveway, so it should be dressed to impress. First, look at the outside of your home as a whole – do you see any peeling paint, damaged gutters, siding, bricks, or mortar? Address all these issues. Then tackle the lawn by mowing, trimming, and cleaning up and weeds or dead plants. Make sure all tools or equipment are out of sight. The front porch and driveway should also be free of any debris like leaves and sticks.

Prepare your home for an appraiser like you would for an interested buyer. Make any updates or repairs necessary, clean everything, and keep track of all the updates that you’ve made. A licensed appraiser will take everything into consideration in determining your home’s true market value.

Source: http://blog.realestatebook.com/2015/09/17/what-to-do-before-the-appraiser-arrives/

September 21, 2015

Is It Time for a New Water Heater?

Water heaters are energy-intensive appliances. In fact, they are the second largest energy user in the home, and as they age, they become less efficient, according to the Propane Education & Research Council.

WaterHeaterRepair

If you don’t know the age of your current water heater, or think it may be reaching the end of its lifespan, it may be time to replace it, says home improvement expert Danny Lipford, host of “Today’s Homeowner.” Lipford advises keeping these three factors in mind when evaluating your water heater:


1. Cost

According to U.S. Department of Energy estimates, the average family spends $400 to $600 each year on water heating costs, and as an older unit ages, its efficiency continues to erode. Rising water heating costs year after year could be a sign that it’s time to replace your unit. By switching to a new energy-efficient water heater or a new energy source, you could save hundreds of dollars each year.

Depending on where you live and how often you use your water heater, a tankless water heater could drastically lower your annual water heating costs compared with electric storage tank models, which are working to heat water even when it’s not needed. In comparison tests with electric units, propane-powered tankless water heaters saved more than $300 annually.

2. Lifespan

Most water heaters should be replaced every 10 to 12 years. To make the right choice for replacement, you should factor in the annual cost of ownership, which is the cost of original equipment, installation and expected annual energy costs divided over the unit’s lifetime.

Both high-efficiency propane storage tank heaters and tankless models deliver lower annual ownership costs than electric or heating oil. At the same time, tankless water heaters also have a much longer lifespan than storage models — they can last 5 to 10 years longer than storage water heaters.

3. Carbon Footprint

Upgrading to a newer, more efficient model means reducing your carbon footprint. Compared with standard efficiency electric storage tank models, propane produces two times fewer emissions. The difference amounts to about 1,300 pounds of carbon dioxide a year, the equivalent of driving a car more than 18,000 miles.

Source: http://blog.realestatebook.com/2015/09/17/is-it-time-for-a-new-water-heater/

September 16, 2015

8 Ways to Allergy Proof Your Home

Whether you have a pet or not, there is dust-free light at the end of the tunnel! You’re not alone, either – allergies affect more than 20% of Americans. In this post, we’ll go over specific ways to free your home of allergens so you and your family can finally breathe cleaner air. Here are some trusty guidelines to get the allergy proofing started.

Magna-Dry

1. Lay down doormats.

In each entryway of your home, lay down two doormats – one on the inside and one on the outside. This helps prevent allergens from being tracked inside. Another alternative is to have your family and guests remove their shoes when they enter your home. Otherwise, allergens are just spread around.

 

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2. Upgrade your vacuum cleaner

If you don’t have one already, make sure your vacuum cleaner has a HEPA filter. These are specifically made to trap particles as small as 0.3 microns. Basically, they’ll be able to capture the majority of allergens.

 

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3. Replace air filters

Remember to always clean or replace the air filters in your heating or cooling system as often as required. You can refer to the manufacturers’ instructions regarding when to change them and how often.

 

4. Beware of mold

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Minimizing mold, especially in your bathroom, is one of the most effective ways to lessen allergens. With more than 100,000 species of mold in the world, the last thing you want is for your bathroom to turn into a war zone. Clean regularly and remind yourself to dry off surfaces that collect standing water. Also, it’s important that your bathroom has good ventilation. Every few years, you should replace any broken tiles and re-caulk sinks and tubs. This keep mold from growing behind the walls.

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5. Say bye-bye to drapes

Consider switching from curtains to blinds or shades because they hold much fewer allergens. However, if you insist on having drapes, make sure they’re machine washable since those are easier to keep dust-free.

 

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6. Get an air purifier filter

From cooking fumes and cleaning vapors to dust and pet dander, there are so many different types of particles that can pollute the air inside your home. Air purifiers can be very effective in helping reduce allergens in the air, but just make sure you stay away from those producing ozone. We recommend using one with a HEPA filter.

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7. Use a hygrometer to measure humidity levels

By investing in a hygrometer, you’ll discover the exact moisture levels in your home. Take a measurement in each room and if the reading is above 60 percent, you may consider using a dehumidifier. High humidity can lead to mold growth, so this is your best tactic to prevent that.

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8. Ditch the carpet

Carpet does a great job of trapping in countless allergens, so it’s a good idea to replace your carpeting with hardwood or linoleum flooring. If that’s not an option, use low-pile carpeting instead of high-pile. Be sure to vacuum at least once a week and shampoo your carpet frequently.

 

Source: Mayo Clinic, This Old House

September 14, 2015

Avoid Homebuyer’s Remorse in 5 Steps

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Have you ever bought something but then later on, found yourself regretting that purchase decision? Well, it’s no big deal when you can easily return or exchange something like a pair of pants or even a designer purse. A house, on the other hand, is much more permanent. It’s not only the largest investment you’ll ever make, but it’s also the place you’ll come home to every day, and where you’ll spend years making life memories as your family grows.

There may be increasing pressure to make a quick decision in today’s fast-paced and competitive real estate market, but it’s important to stay grounded throughout the home buying process. Before you try to compete with other interested buyers and snag that “hot listing”, take a breath and follow these steps.

1. Stick to your home requirements.

Before you even start your search, make a list of your “must-haves” in your new home. If having a 2-car garage is on the list but the house you’re looking at only has a 1-car garage, move on. Don’t let yourself settle for something less and then end up making expensive renovations because it’s not exactly what you wanted.

2. Know where you’ll compromise.

Note any items that are on your home wish-list, but you could live without. There should be at least a couple home features that you and your partner or spouse can compromise on.

3. Stand your ground.

Even after you have made the decision to buy a specific home, don’t let yourself overlook major issues. For example, if the inspector finds a cracked foundation or dry rot in the floor joists, you should either back out of the deal or get the price lowered to reflect the cost of the repairs.

4. Keep a clear head.

If you get stuck in a bidding war with another buyer, you need to ask yourself if you really want the house or if you just want to win the fight. The last thing you want to do is end up overpaying for a house that doesn’t completely satisfy all your needs.

5. Love the home’s proximity.

You can change many things about a home, but you can’t change the location. Think about what you do everyday in regards to where you live. This includes where you work, where you have to take the kids to school, and where you do things for fun.

These are all very important factors to consider when buying a home and most importantly, they’ll help you avoid homebuyer’s remorse at all costs. Find a home you’ll love living in every day. The less you want to change, the better!

Source: http://blog.realestatebook.com/2015/09/10/avoid-homebuyers-remorse-in-5-steps/

August 26, 2015

Top 8 Reasons Homeowners Choose a Metal Roof

In recent years, there has been a lot of talk about metal roofs and their manifold benefits. And why not? As one of the most durable roofing materials available on the market, metal roofs have outshined the famous asphalt shingles, slates, and other composite roofing materials. Here are eight reasons why homeowners choose a metal roof:

1. Durability

Everyone wants a strong roof that can shield the family and the home from windblown debris and unfriendly weathers. Unfortunately, many roofing materials do not have the strength to withstand against aggressive wind and temperature change. Metal roofs, on the other hand, are fire-retardant and impervious to rust, mildew and mold. They are great for coastal homes and areas with wind that travels up to 140 mph.

2. Longevity

The fact that metal roofs do not succumb to many of the common roof plagues makes them not only durable, but also lasting. They do not experience extreme thermal expansion and contraction, making them even less likely to break, chip, crack, or become loose over time. According to the Metal Roofing Alliance, a metal roof can live between 40 to 60 plus years, which is two to three times longer than a well-maintained asphalt roof.

3. Convenient Upkeep

If your metal roof has been properly installed, then maintenance on your part is virtually zero. Unlike other roofing materials, metal roofs do not absorb water and can rid snow easily from its surface. These two factors alone greatly reduce the chance of having a damaged roofing structure and gutter system.

4. Energy Efficiency

Metal roofs have high solar reflectance and thermal emissivity, which means that they can efficiently reflect solar heat right back to the atmosphere. Depending on where you live, a metal roof can keep its surface approximately 100-degree Fahrenheit cooler than any conventional roof.

5. Eco-friendly

Unlike an asphalt shingle roof that needs to be replaced every 15 to 20 years, metal roofs can live beyond age 50 without any sign of decay. Additionally, metal roofs are 100 percent recyclable. Whereas more than 13 billion pounds of asphalt shingles lay uselessly in landfills, retired metal roofs are reused and contribute to at least 25 percent of a newly constructed metal roof.

6. Customization Flexibility

Metal roofs can not only be painted in hundreds of colors, but can also be coated to emulate textures of other roofing materials. They are excellent for various residential buildings, especially historic homes that need a strong roof to protect the building structure and still maintain its cosmetic integrity.

7. Resale Value

There are many factors a buyer considers when looking for a new home. Because metal roofs require virtually no upkeep, are durable, and last for decades, homes with a metal roof generally enjoy a 1-6 percent increase in resale value when compared to an asphalt-shingle home.

8. Great Return on Investment

Although slightly hefty in its upfront cost, metal roofs are a true energy saver in both summer and winter. Known to reduce your cooling costs by as much as 40 percent, Home Guides reports that a metal roof helps homeowners recoup an average of 85.9 percent in their investment. In the meantime, homeowners living in the eastern regions of the U.S. have been found to recoup up to 95.5 percent of costs on average for their metal roofs.

Source: http://blog.rismedia.com/2015/top-8-reasons-homeowners-choose-a-metal-roof/

August 20, 2015

Paint Like a Pro in 5 Steps

Nothing transforms the look of a home as simply and inexpensively as paint. Whether you’d like to liven up a dated design or refresh your entire home to sell, paint like a pro with these tips.

 

1. Look for high-quality products.

When it comes to paint, quality matters. Search for a combination paint-and-primer to save a few steps and ensure complete coverage and deep color saturation. The paint should have high hiding ability and resist dirt and scuffs.

2. Get inspired online.

Color selection can seem intimidating, but it’s a chance to infuse your personality into your home. Many online resources are available for homeowners to explore, coordinate and experiment with different looks. Pinterest and Apartment Therapy are great websites for browsing images, finding home décor inspiration and colors that speak to you.

3. Use paint samples, rather than chips.

The most realistic way to envision the color in your home is to see it in action. Many paint retailers offer small sample cans for just a few dollars. Use these to paint a few stripes of each color option in the room you’ll be painting. Note how color changes in different lighting conditions.

“Sunlight, shadows and furniture can all alter the appearance of paint in your space,” says BEHR Vice President of Color Marketing Erika Woelfel. “Before fully committing to a hue, make sure it’s one you’ll love morning, noon and night.”

4. Use the right painting supplies.

High-quality painting tools save you time over the course of your project and produce the most beautiful finish. For best results, use a lint-free roller cover. Select brushes made of nylon and polyester. For flawless edges, use a painter’s tape specifically designed for your surface type.

5. Prep before painting.

Begin by removing all wall fixtures, such as pictures, doors and light switches. If you have small cracks or holes in your walls, remove any dust and apply a patching material. Make sure to allow this to dry completely before sanding the finished area. Wash away oil, grease or wax stains by dampening the surface, applying mild detergent with a sponge, and then rinsing the wall clean. Once dried, you’ll be ready for smooth application and beautiful color.

Source: http://blog.realestatebook.com/2015/08/12/paint-like-a-pro-in-5-steps/

August 3, 2015

The Hottest Trends in Tile

New designs, styles and technologies are making tile the most versatile and accessible flooring material in homes today. Whether tiling up a wall or carrying tile throughout the home, many builders, designers and homeowners are thinking outside the box when it comes to this trend, says The Tile Shop, purveyor of tile and natural stone at more than 100 retail showrooms across the country.

“Tile has always been durable and easy to maintain,” says Kevin McDaniel of The Tile Shop. “Tile has a long lifespan and classic good looks, making it a favorite flooring of choice wherever homeowners need a floor material that’s both practical and beautiful. Even more design options are available now, making tile a smart floor surface in virtually any room of the home.”

If you’re thinking of renovating your home, try incorporating some of these innovative tile trends in your home.

Rustic, Real Wood

hgtv.com

hgtv.com

Many of the larger-format, faux wood tiles mimic the look of real hardwood floors. Less expensive and more durable than real wood, these tile floors are practical yet beautiful choices for active households with children and pets. Details evoke the character of real wood, right down to the nails.

“Rustic faux wood is making a huge splash because of its warm, earthy coloring and unusual time-worn finishes such as aged paint, which is difficult to achieve with real wood. I foresee it continuing to be a very popular design trend,” McDaniel says.

Longer Planks

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While standard square tile sizes will always have their place in home decor, rectangular tiles – otherwise known as planks – are gaining popularity. New 12-by-24-inch tiles are ideal in bathrooms. In addition, 6-by-36-inch tiles or 8-inch by 8-feet planks (often in wood-grained looks) are a favorite for living areas.

“Using longer planks can help smaller spaces look larger, and create an appealing consistency across multiple rooms,” says McDaniel. “While consumers may be familiar with traditional tile shapes such as square or hexagon, these longer tiles offer exciting new design flexibility.”

Poured Concrete

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Concrete is a trendy design material right now, but it’s not practical for every household or application. New tile styles create the look of poured or stained concrete at a fraction of the cost, and they include all the durability, versatility and ease associated with tile. Tile options range from long rectangular 8-by-18-inch or 12-by-24-inch planks to 18-by-18-inch squares. Tiles are rectified (the edge is cut completely straight) and grout joints are very narrow to create the look of seamless concrete.

Heated Floors

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tradewindsimports.com

While heated floors were once a luxury option for homeowners, they’re becoming increasingly mainstream. Tile lends itself to radiant heat beneath the floor. Some retailers even carry thermostats to control the heated floor.

High-Contrast Grout

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Using a high-contrast grout color can make the floor pop, and it’s a tactic that works well with mosaic designs. Choosing the right grout color is just as important as the tile you select. Also popular is the concept of mosaic designs that mimic an area rug within a larger section of tile flooring. It creates the look of custom art within the floor.

Source: http://blog.realestatebook.com/2015/07/23/the-hottest-trends-in-tile/

July 22, 2015

The Search for Lending Options

Which Lending Option is Right for You?

Whether you’re looking to make a first-time purchase, refresh an existing home or simply leverage built-up equity for other reasons, it’s important to figure out which path is right for you and understand the lending options available.

First-time buyers must start with determining what is affordable. In addition to the mortgage payment, housing costs will include property taxes and homeowners insurance and fees, such as homeowner association dues. Altogether, costs should be no more than 28 percent of monthly gross income and should leave room to continue servicing other debt, such as student loans, credit cards or auto loans.

When preparing to buy a home, work through credit pre-approval to be ready with a strong offer when the opportunity arises. In addition to reviewing credit history, a loan originator will consider the amount of the down payment. A down payment typically ranges from 3-20 percent. A down payment that is less than 20 percent may require you to purchase mortgage insurance. A mortgage originator, however, can provide a variety of lending options to optimize your investment, from 15- and 30-year mortgages to fixed and variable terms.

If planning to make some improvements to a much-loved residence, consider financing the updates through a home equity line of credit (HELOC). Eligibility depends on how much equity has been built up in the home and the lender’s loan-to-value ratio. A HELOC works much like a credit card and offers flexibility. A minimum amount is paid monthly, and interest applies to the amount borrowed.

Before embarking on a remodeling project, do some homework. Start with the lender to determine the value of the home and the loan amount available. Then, establish a budget that leaves room for unexpected expenses. Work with a reputable professional to define the project and its requirements, and shop around for bids and recommendations to confidently select a contractor. Some lenders offer checklists to help get the most from the investment.

Another option for financing a project through a home’s equity is a home equity loan (HELOAN). As with a mortgage, this loan is granted as a lump sum and is paid back in installments over time, typically 10-15 years and at a fixed rate locked in at the time of securing the loan. A HELOAN works well for a one-time goal to improve the value of a home. Be mindful that either a HELOAN or a HELOC introduce some uncertainty, as monthly expenses will increase and must be maintained to avoid foreclosure risk.

Remember to consult a professional for advice applicable to your specific situation. Start with a lender who can help you identify financial options available to home buyers and owners today. With careful planning and budgeting, the financing you need may be well within reach.

 

Source: http://blog.realestatebook.com/2015/07/13/which-lending-option-is-right-for-you/