Buying a home

Find out How Much Mortgage You Can Afford
You can save yourself a lot of wheel-spinning if you take a minute to figure out how much mortgage you can afford. Generally, a lender will want your monthly mortgage payment to total no more than 31% of your monthly gross income (that's your monthly income before taxes and other paycheck deductions are taken out.) For those borrowers who qualify under FHA's Energy Efficient Homes, the monthly mortgage payment can total 33% of your monthly gross income. You also need to consider current loan interest rates. The lower the interest rate, the more expensive the home you'll be able to afford. Follow our tips and use the simple calculator to see how much you can afford in a mortgage payment.

Create Your "Wishlist"
Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your real estate broker, too.

Mortgages and Homebuying Programs
Many different kinds of mortgages are available to you. Read about them, and make sure you understand the pros and cons of each. Your real estate broker can help you. Also, many local governments offer special homebuying programs to help low-income homebuyers. Shop around - you may be surprised at all your options!

Shopping for a Home
Now you really begin house-hunting. Your real estate broker will be able to find listings for you, based on your wishlist. But don't stop there! You can do your own looking, and then ask your broker to show you the house. Start with the Internet. Pick up real estate flyers at local grocery stores and convenience stores. Read the real estate sections of your local newspaper. Drive around neighborhoods that interest you and write down addresses where there are "for sale" signs. Go to open houses. Try everything!

Home Inspections
When you make an offer on a home, it's a good idea to make your offer contingent on a home inspection, conducted by an independent authorized inspector. You will have to pay for this inspection yourself, but it could keep you from buying a house that will cost you far more in repairs, down the road. If you are satisified with the results of the inspection, then your offer can proceed. If you aren't, you may want to negotiate, asking the seller to pay for certain repairs or asking for a lower price.

Buying a Home - HUD (25 Oct. 2005) http://www.hud.gov/buying/comq.cfm (18 Nov. 2005).

Selling a Home

If you've decided to sell your home, chances are you're caught up in a host of emotions. You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters that need your attention. Keep in mind the following considerations to help the whole process go more smoothly.

Time Becomes Money
It's a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you qualify for a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms. Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.

Check Your Curb Appeal
A home that's visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider's eyes.

• Are the lawn and shrubs well maintained?
• Are there cracks in the foundation or walkways?
• Does the driveway need resurfacing?
• Are the gutters, chimney and walls in good condition?
• Do the window casings, shutters, siding or doors need painting?
• Are garbage and debris stored out of sight?
• Are lawn mowers and hoses preperly stored?
• Is the garage door closed?

On the Inside
Strong curb appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of easy improvements you can make to your home's interior without spending a lot of money. Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle. Make sure you have clean heating and air conditioning filters. Shampoo dirty carpets, clean tubs and showers, repair dripping faucets and oil squeaky doors. Keep your home neat, clean and picked-up at all times. It may not seem fair, but a peek in the oven may be the hallmark by which a buyer judges how well you have kept up your home. Remove unnecessary clutter from the garage, basement, attic, closets and straighten stored items. Also remove any items that might make a statement that would be offensive to others who may not share your same views, beliefs or sense of humor. If your home is crowded with too much furniture, consider putting some things into storage. If a room needs a fresh coat of paint, use a neutral off-white. Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others. Be certain to remove valuables such as jewelry and other items from view. It might be wise to put these items in a safe deposit box before showing your home. Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the bathroom. Place scented potpourri around the house or, on the day you're expecting a potential buyer, pop a batch of frozen cinnamon rolls into the oven for a welcoming aroma. Remember, cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It's attention to the basics—anything that says “this home has been carefully maintained”—that will help you get the price you want.

Setting a Fair Price
Naturally, you want to get top dollar for your home. But, at the same time, you don't want to scare off potential buyers with a price tag that's too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home.

• Your location
• Economic conditions
• Supply and demand in the local housing market
• Seasonal influences
• Local schools
• Average home prices in the neighborhood
• Your home's extras -- pool, fireplace, central air, etc.

Qualifying a Buyer
Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. A number of factors will help determine whether or not you are wasting your time negotiating a sale.

• The buyer's debt and credit history
• The buyer's current income and employment
• The buyer's cash position and availability of a down payment
• The length of time the buyer needs before closing on your home
• How interested the buyer appears to be in your home versus others

Moving Guide

Letting Go
An important component in every move is the need to bring closure to your personal matters and relationships in your old community and create attachments in the new one. The list of tasks at both ends of the move varies with each individual and family. Following are specific suggestions and general tips that can help guide you through the process.

Fun ways to bring closure

Letting Go-(2005) http://www.moving.com/Moving_and_Planning/MAP_Article/letting_go/ (18 Nov. 2005).

A Primer on How to Stay Connected
A hassle-free move is largely a matter of remembering the details, and dealing with utilities well in advance of moving day can help insure anyone's peace of mind. Nobody, after all, wants to relocate across town or country only to find the phone dead and lights out.

When disconnecting services in one location and resuming them in another, there are a few simple rules to follow. While gas, electric, phone and cable companies each have their own lead-time for disconnect/connect notification, a good rule of thumb is to contact their customer service departments at least two weeks prior to the move.

On your day of departure, be sure to keep those lights burning, the heat going and the phone working until you've waved the movers goodbye and locked the front door. Arrange to have those same services up and running at your new residence at least a day before you move in. A few more points to keep in mind when vacating the premises:

Final Reading
Have your utility companies and/or town do a final reading of the gas, electric and water meters. Make sure to get and keep a copy of your bill or report.

Forward Your New Address

Supply companies with a forwarding address where they can send final invoices. If you don't, you could be surprised down the road with unnecessary late fees and unfortunate credit circumstances.

Pay the Piper

Pay any overdue bills.

Get Your Money Back

Collect any refunds or utility deposits. Many people forget that they may have served up a substantial chunk of change months and sometimes years back - depending on how long they've lived at their most recent address.

Bring Important Numbers and Addresses With You

Take along your local phone directories, in case you need to make contact again with your old neighborhood.

Establishing service in a new location is usually a quick and painless procedure. With just a few advance phone calls, services can be up and running before you arrive. In some instances, however, such as a history of delinquent payments, a deposit may be required of the customer before service can be turned on. When moving from out-of-state or switching companies in-state, identification (such as a driver's license) may also be required. A good way for a customer to avoid service snags is to ask former service providers for letters that confirm a satisfactory payment history. Regardless, it's always a good idea to contact utility company service representatives and discuss your situation well before the big move.

Unless you're bent on cable television in a house that hasn't been wired for it, or you require additional telephone lines, there are usually no additional costs incurred when moving into your new home. In fact, you might have an opportunity to save a few bucks by taking advantage of television, Internet and telephone services that are "bundled". By purchasing all three services from the same company, the customer can often realize a significant discount.

Finally, water and sewer service can be arranged directly through the appropriate town or city department. The same holds true for garbage pickup and recycling, the cost of which is usually rolled into the property tax bill.