THE 4 MUST-DO'S BEFORE SHOPPING FOR A HOME

For home shoppers, looking at homes and imagining living there is the best part of the process. But like a child who must eat their vegetables before getting dessert, first-timehomebuyers have a lot of work to do before making a bid on a home they want.

Thanks to the Dodd-Frank Act that took effect this year -- requiring more proof from consumers that they can afford a home, along with helping to protect them against bad lending practices -- getting a home loan is more difficult than ever. Getting your financial house in order before buying a home is always a smart move, but tighter credit makes it almost a necessity.

The total number of purchase mortgages originated in 2012 is down 44 percent from 2001 levels, according to a recent report from the Urban Institute. A large portion of the drop -- as many as 1.2 million loans -- can be attributed to low credit availability, researchers found, disproportionately

"Getting a loan right now is a lot easier than it has been. Getting a home right now is brutally different."

affecting African-American and Hispanic borrowers.

Getting a home loan with tighter credit restrictions in today's home loan market can be more difficult, but it's a lot easier if you're prepared financially. Here are four things home shoppers should do before attending every open house they can get to on a Saturday afternoon:

1. File your taxes. With tax filing day around the corner, this is a must because a lender will want to see your most recent tax returns to show your income, says Wendy Cutrufelli, sales and marketing administrator for the mortgage division of Bank of the West in San Francisco. Even if you owe taxes and are making a payment now, but are filing an extension with the IRS to file a return up to six months later, you'll need to show a lender alternative documents to show your income, Cutrufelli says. But ultimately, the bank will want a copy of your federal tax return.

2. Gather other financial documents. These include anything that can show your full income for the past two years, such as W-2s, old tax returns and tax forms such as a 1099 IRS form to show self-employed income. If your family owns a business together, you'll need a corporate tax return for two years, Cutrufelli says.

To get a "qualified" mortgage under the Dodd-Frank rules, you'll have to prove you can afford the home with enough assets and show an ability to repay the loan, along with mortgage insurance.

"In the current world, the more assets you can show, it's more helpful," Cutrufelli says.

A borrower's debt-to-income ratio can't exceed 43 percent, and they must have enough reserves for two months of mortgage payments and insurance. A firm bid for homeowner's insurance must also be in hand, she says.

"The last thing we want anybody to do is wipe out themselves to buy a home," Cutrufelli says of the importance of having two months of reserves after buying a home.

3. Check your credit report. Doing this six months to a year before buying a home is smart, partly to check your credit score and try to improve it. But the main purpose should be to check for errors and fix them, Cutrufelli says.

"Credit report errors do happen. It's important to repair those errors," she says.

For example, a credit agency may say you've missed a payment, but you can prove you weren't late. Errors can take 90 days to fix, Cutrufelli says. Get a free credit report at AnnualCreditReport.com.

4. Research the housing market. This is the final step before the fun of house hunting begins. Bank of the West, which does business in 19 states, has seen home prices rise in every market it's in, Cutrufelli says, requiring borrowers to research their local housing market and know how much home they can afford.

"Understand where you need to start to get your house," she says of knowing home prices and how much of a loan they qualify for before shopping. Whatever that qualifying level is, bid at 20 percent less so you have room to raise the offer if other buyers come in with cash offers or multiple offers are made, Cutrufelli says.

"Getting a loan right now is a lot easier than it has been. Getting a home right now is brutally different," she says.

For too many first-time homebuyers, the joy of looking at pretty homes is a lot more enticing than doing the hard work of preparing their finances.

"They don't actually deal with all that hard work until they see a home they like," Cutrufelli says.

Be a smart home shopper. Eat your veggies.



*courtesy of AOL Real Estate

AWESOME 3-D FLOOR PLANS COMING TO HOME SEARCH SITES

Consumers shopping for homes and apartments on local Web portals including NJ.com, NOLA.com, Syracuse.com and OregonLive.com will soon find 2-D and 3-D visualization tools provided by DIAKRIT through a partnership with Advance Digital Inc.

The companies said today they have entered into a partnership “to enhance the online consumer home and apartment search experience in over a dozen key markets across the nation.”

DIAKRIT 3-D floor plan.

Advance Digital oversees the Internet strategy for affiliates of Advance Publications Inc., including Condé Nast Digital and Advance Local Media Groups. Based in Jersey City, New Jersey, Advance Digital’s list of affiliate sites includes AL.com, Cleveland.com, GulfLive.com, LehighValleyLive.com, MLive.com, MassLive.com, PennLive.com and SILive.com.

Last mont RentPath Inc., the parent company of ApartmentGuide and Rent.com,said its partnership with DIAKRIT had generated more than 260,000 floor plans, allowing all RentPath advertisers to show prospective renters the layouts of nearly 7 million housing units. The 2-D floor plans include a “room planner” tool that allows users to choose and arrange virtual furniture using DIAKRIT’s “D-Furnish” capabilities.

In addition to 2-D and 3-D floor plans, DIAKRIT offers photo editing and retouching work, property slideshows, high-end 3-D visualizations, and fly-through animations. Using streamlined processes and in-house production, DIAKRIT says it’s able to scale its business quickly to handle large volumes quickly and affordably.

*courtesy of Inman News

TIPS FOR DO IT YOURSELF INTERIOR PAINTING

In his role as the "Paint Doctor" for Purdy -- longtime makers of handcrafted paint brushes and roller covers -- Bruce Schneider fields queries from intrepid do-it-yourselfers on a regular basis. Who better to ask about the most common problems that homeowners encounter in their interior paintingprojects?

No. 1: Choosing inferior applicators
Solution: "To get the job done right, you need good quality tools," Schneider says. "It always boggles my mind that people are willing to spend $40 or $50 on a gallon of premium paint but decide to go cheap on the applicators. Later, when they see a hair on the wall or lumps of roller lint under the paint, they'll realize the mistake. Investing in good brushes or rollers up front is worth the extra expense."

No. 2: Improper preparation
Solution: "It may seem obvious, but you always want to do repair work first so that your walls are smooth, clean, dry and free of loose debris before you begin painting," Schneider advises.

No. 3: Overextending each dip of the brush or roller
Solution: DIYers often continue applying a dip of paint until the brush or roller becomes dry. The problem? "When you overextend each dip, the paint can dry in the brush bristles, and the fabric onrollers can mat down," he cautions. "Be sure to always maintain a smooth line of paint. Once the paint appears to break up, it's time to re-dip."

No. 4: Breathing the wrong way
Solution: The way you breathe when painting -- especially when cutting in near edges -- can affect the steadiness of your hand. "When you need to be precise, hold your breath or breathe out," Schneider suggests. "Your body moves more when you're breathing in."

No. 5: Letting touch-up paint dry out
Solution: To extend the life of your leftover paint, try these tricks. "For water-based paint, place a piece of clear plastic wrap directly on the surface of the paint, then reseal the container," Schneider offers. "For oil-based paint, add about a half-inch of water on the surface before resealing."




*courtesy of Zillow

PORTLAND HOME PRICES CONTINUE TO RISE

Home prices in Portland continue to rise, with the average home now selling for 8.7 percent more than in 2013, according to a new report by real estate research firm RMLS.

The average selling price of a home for the first half of 2014 was $328,900, up from a year ago when the average was $302,700.

Realtors are also closing more deals. In June, there were 2,617 closings, which represents a 4.2 percent increase over the 2,511 closings from June last year. This year saw the strongest June for closed sales in the region since 2007 when there were 2,731 closed sales.

There were 20,248 new listings in the first half of 2014, up 4.4 percent compared to the first half of 2013.

*courtesy of the Portland Business Journal

HOME IMPROVEMENTS TO AVOID IF YOU'RE CONSIDERING SELLING YOUR HOME

Everyone knows that a home's features can make or break a home sale, and that's truer now than ever. But when it comes time to sell your home, not all home-improvement projects are created equal.

While some home improvements are worth the time and money that you put into them, just as many are not, and it's important to know the difference so that you can show your home in the best light while maximizing your return on investment. 

If you're thinking about selling your house anytime soon, think twice before making any of these home improvements:

1. Extreme additions

Strategic additions that make better use of home space and lot lines can help at selling time, but home improvements that are too personalized or elaborate may have the opposite effect.

"A lot of times we advise our sellers not to do any major additions to a property, because you could price yourself out of the market, as well as increase property taxes for the future buyer," says Renee Mayhall, RealEstate.com managing broker for the Carolinas. "You want to sell the home and move on to a property that's going to better suit your needs, and let the buyer put their own personal touch on it instead, because you literally won't get that money back."

2. Enclosed porches and sun rooms

While these spaces hold interest for some, most buyers will see a lost opportunity for valuable outdoor space or a drain on home energy efficiency, thanks to often-leaky glassed-in walls. I've also seen sunrooms on dangerously poor footings, constructed on a thin patio slab. Instead, keep porches well-maintained and out in the open. An authentic outdoor room is more flexible and appealing to buyers.


3. Way-out wall coverings

Experiments with bold paint colors and personalized patterns will translate either as far out or out-of-date. Remember, this isn't personal, it's real estate. Keep home interiors neutral so that potential buyers have an appealing canvas on which to draft their own stylistic vision and lifestyle. (Also see"Sell Your Home With These Interior Paint Colors.")


4. Bad basement finishes

Basement finishes can lead to a host of problems for you, as well as for the future owner of your home. Address basement dampness issues before converting this valuable bonus space, and avoid the temptation to carpet your basement unless you want to start a mold farm.


5. Intricate landscaping

An overabundance of landscape plantings may initially appeal to a buyer's eye, but then they'll start thinking about the time and costs of maintaining a backyard paradise. So simplify your landscape planwith easy-care plantings that deliver color and impact, and highlight water-wise irrigation systems in your home's listing and open-house tours. (Also see "Landscaping With Low-Maintenance Lawns Saves Money.")


6. Pools and spas

"Some people love Jacuzzis and other spa-like improvements," notes RealEstate.com Atlanta agent Katrina Walker. "But if it's not a custom home, those may be things you put money into and don't get money back out of when you try to sell the house." Swimming pools also take up valuable backyard living space and add major maintenance and liability issues to a home's real estate profile. Only add one if you plan to be in your home for a very, very long time.


7. Home office remodels.

Though many buyers tend to work from home at least part of the time, a full-blown office remodel can be an obstacle to other uses of valuable square footage. Avoid custom bookcase installations and bulky built-ins that are difficult and expensive to remove or change.


8. Unnecessary improvements.

Replacing a roof when it only needs a few repairs and upgrading plumbing systems are just a few examples of improvements that mean big money that you'll never get back. Instead, stay on top of routine home-maintenance tasks, and let the next owner decide what major improvements to make. Be careful not to let contractors supersize small repair projects by talking you into full-blown replacements.


9. Anything you can't finish

Projects-in-progress shouldn't be among the features of open houses and walk-throughs. If you have a few final improvements in mind, you'll either need to go with a pro or just say no when time and a home sale are of the essence.

"You want to get everything ready before you start to sell, instead of working it out in-between," advises Harrison Tulloss, a ZipRealty agent based in Raleigh, N.C. "If you can do small changes and work with what you've got, it usually ends up working out better than totally re-creating or rearranging, and not getting any value out of the investment."

Tom Kraeutler is a home improvement expert for AOL Real Estate and host of "The Money Pit," a nationally syndicated home improvement radio program offering cost effective home improvement tips and ideas.

*courtesy of AOL Real Estate

PICKING THE RIGHT NEIGHBORHOOD IS AS IMPORTANT AS PICKING THE RIGHT HOME

When most of us shop for a new home, affordability is at the top of our "important requirements" list. While this is clearly an important factor, finding the right neighborhood involves a slew of other considerations. Here are some of the factors to think about before settling on your new location.

Cost: Your income, credit scores and debt combine with the down payment, mortgage term, interest rate and current real estate market to determine how much house you can afford. Property taxes also have an effect on housing cost by neighborhood so be sure to investigate if the area is getting a steal or getting the short end of the stick when it comes to return on tax dollars.

It's a good idea to think about the places you visit frequently and how close or far away they will be.

 (You can also check your credit scores for free on Credit.com to get an idea of where you stand before you begin your search.)

Proximity to Schools: Even if you do not have children, proximity to good public schools instantly adds value to your neighborhood and property, which can be crucial when it comes time to sell the home. Be sure to look into the public and private education in your area and calculate the costs and convenience factors of each if you do have children.

Safety: Understanding the crime rate in your neighborhood is an important step to making the decision of where to live. It's important to take into account the violent and property crime numbers and how they compare to other neighborhoods you are considering.

Demographics and Growth: Diversity, population and neighborhood characteristics are all important aspects that make a big difference on a neighborhood. Investigate how the neighborhood has grown in recent years -- and who and how many people live there -- to do determine if it is somewhere you would fit in or stand out.

Access: When picking your next home, it's a good idea to think about the places you visit frequently and how close or far away they will be. From grocery stores and pharmacies to banks, laundromats and gyms, evaluate whether the options around your potential dwelling include what you need or like at a reasonable cost. You may want to try out your commute as it can greatly impact your quality of life.

Finding the right neighborhood for you and your wallet is a personal experience. While it may not always be foolproof, it's a good idea to research the above factors for a potential home before signing on the dotted line!



*courtesy of AOL real estate

FORECLOSURES HIT 8 YEAR LOW

Foreclosure activity across the United States dropped to an eight-year low in May as banks reclaimed fewer homes and foreclosure starts saw their lowest levels in years, RealtyTrac said in a report on Tuesday. RealtyTrac, which tracks and maintains housing market data, said 109,824 properties across the country were at some stage of the foreclosure process in May. That marked a 5 percent decline from April and left foreclosure activity -- foreclosure notices, scheduled auctions and bank repossessions -- 26 percent below the year-ago level.

May was the 44th consecutive month foreclosure activity was down on an annual basis, a sign of the housing market's steady progress toward recovery. "This is showing that foreclosures are fading further into the rear-view mirror in most places," Daren Blomquist, vice president for RealtyTrac, told Reuters. "This is good news for the housing market."

Lenders reclaimed a total of 28,373 properties in May, down 6 percent from April and the lowest level since July 2007. Repossessions were down 27 percent from a year ago. Nationwide, 47,085 properties were set for foreclosure auctions, the fewest since December 2007, the month the nation fell into recession.

Foreclosure starts also were at a multiyear low, with lenders starting the process on 49,240 properties in May, down 10 percent from the previous month and down 32 percent from a year ago. The decline brought starts to their lowest level since December 2005. With one in every 436 homes in foreclosure, Florida continued to have the nation's highest foreclosure rate, followed by Maryland, Nevada and Illinois.

"I think the numbers will continue to drop and could flatline by early next year," Blomquist said.



*courtesy of AOL Real Estate