What To Do After the Move

We can read a lot of articles on what to do before the move, but, there are limited articles talking about what you have to do once you move into your new home. So, here are some tips that will help you settle down to your new surroundings.

1.  Make sure that all utilities are already set up and ready for use.

2.  Make sure that ALL appliances and electronics are not damaged from the transfer. If something was broken during transit then you can claim damages from your insurance company (if you've taken one)

3. If you have child(ren), consider working on the children's rooms first. Moving to a new place may disrupt your child's routine. The sooner they can settle into their new home; the sooner they'll feel comfortable in the new place they're going to live in.

4. Register your children to their new school. The earlier you register them for school; the faster for them to settle in.

5. Obtain a new driver's license and plates for your vehicles.

6. Register to vote.

7. Make sure that all mails from your old home will be forwarded to your new address.

8. Find new health care professionals (i.e. doctor, dentist and veterinarian) in your new local area.

9. Set up new accounts with banks close to your home. It's always easier to have your branch of account near you. For the reason that, in case something goes wrong, you can immediately communicate it with the bank and if they need you to appear in person, you can quickly pass by the bank to settle the problem.

10. Moving into a new neighborhood means new neighbors. Take time to introduce you and your family to your new neighbors. They might be able to share some tips and tricks about your new community that might come in handy in the future.

11. Also help your kids join sports leagues or sign up for their favorite hobbies. Gaining new friends will be easier if they are part of a group.

It will take time for you and your family to become accustomed to the new surroundings and new people in your neighborhood. But give it time, you’ll eventually get used to your new environment.  Just follow the tips above and you'll be fine. If you need help in moving into your new home, please don't hesitate to contact me.

Is Home Ownership Still Possible for the Millennial Generation?

Bound by student loan debt and looking at unemployment situation n the US, many millennial (those in their 20s and early 30s) - the traditional 1st time home buyers, wonder if they can still afford to purchase their own home.

In May, Alaska has reported unemployment rate of 7%. (Source: Bureau of Labor Statistics)

With the mortgage rates and home prices at record lows,the millennial generation are excited to buy their very first home! Only to find out that their dream of buying a home is out of the question if they are still paying off their student loan debts.

If you belong to the Millennial generation with student loan debts and buying a home is your goal, then you can start with these three steps:

1. Cut debts. Reduce or eliminate all debts including student loans. When a lender reviews your loan application, they will look at the following factors if you can qualify for a mortgage loan. 

  a. Income
  b. Debt
  c. Credit
  d. Employment
  e. Property or collateral
  f. Financial resources used for closing costs

Most lenders want to make sure that you will be able to meet your monthly mortgage payment (including taxes, insurance and all other fees) With all factors combined, this should not exceed 28% of your gross monthly income (before-tax). After that, they will factor in your existing debts, the total of your mortgage payments and existing debt should be under 36% of your before-tax monthly income.

2. Increase your credit score. Lenders want to know what risk they will be exposing themselves if they loan the money to you.  They want to see how much you owe, how often you borrow, if you pay your bills on time and if you are living within your means.  Late payments can hurt your credit score, low credit score can make it harder and more expensive for you to obtain a loan. So, make sure that you settle all your obligations on time.

3. Save on down payment. Once you've cleared all your debts, start saving for a down payment. The amount of down payment you need to save depends on what type of loan you want to take. If you are applying for an FHA loan, the minimum down payment will be 3.5% of the purchase price. While conventional loans may require to pay for 10% - 20% down payment.

If you decide to buy your home while you still have your student loans to pay for, Barbara Corcoran, co-founder The Corcoran Group advised, "See how much debt you are comfortable living with, I would suggest you go on a trial run.  Add up your student loan PLUS what you WOULD have to pay if you were to take on a mortgage and try living on the expenses for 6 months and see if you could live with it. If you are comfortable living with it, then go ahead, if not, then wait for a while before buying your first home".

If you need help on figuring out if you qualify to purchase your dream home, please don't hesitate to call me.  Check out www.anchoragehomedeals.com for a list of homes suited for first time home buyers.

Common Mistakes To Avoid When Renting Out Your Property

Mortgage rates are at its historically low these days. Some home owners take advantage of the low mortgage rates to invest in real estate and use it as a rental property to generate additional income.  When they rent out their property, someone else is paying for their mortgage while they earn extra money from the difference in mortgage and rent.  Renting out properties is a great way to earn additional income but it can also be a nightmare if you don't know how to manage it. If you want to have a smooth rental business, make sure to avoid these common landlord mistakes when you rent out your home:

1. Being Lax About Screening
Finding the right tenant is always the key to having a successful landlord tenant relationship.  Always set your guidelines of who you do and don't want to rent to. Make sure they fill out the application form with the correct information. This way you'll get an idea of what type of person your prospective tenant is.  Use a national credit check company to run their application. You must check for credit, employment and rental history. Ideally, they must pass all 3, but 2 out of 3 will suffice. It is an automatic denial if they have any criminal or eviction record.

2. Not Having Correct Documentation
Having a signed lease agreement is always a smart thing to do. The agreement will serve as a guideline for the tenants to follow in renting the property. The document will cover topics such as late payments, pet policies, vandalism and so on...

Realtors or an attorney can help you create a rental agreement in accordance to the state rules and your preferences.

3. Discriminating Against Prospective Tenants
Familiarize yourself with fair housing rules. The Human Rights Commission is very strict on discrimination when it comes to housing.  The Fair Housing Act prohibits the discrimination in the sale, rental and financing of dwellings and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). (Source: www.hud.gov)

If you want to turn down a renter's application, use a credit or background check to support your decision.

4. Forgetting to Prepare Your Home
Home staging is always important, whether you want to sell your home or have it rented out.  If you want to get top dollar on your investment, then better make sure that your property is move-in ready and in tip top shape.  Fix everything that needs to be fixed.  Paint the walls and ceilings. Also make sure that your flooring
is nice and clean. Preparing your home makes the home more marketable to prospective tenants and easier to rent out.  The state of the home will always say something about the personality of the owner. If the house looks shabby, then it will reflect on the landlord.  The house that's going to be rented out must always be move-in ready.  Renters will NOT make any improvements on the property that they are going to rent.

5. Forgetting To Buy Correct Insurance
Even if you have homeowners insurance, it will not offer full coverage if your home is being rented out full time.  By getting a landlord insurance, you can protect yourself from damages, accidents and financial losses on your rental property.  The landlord insurance will not cover the loss in renter's possession in case of damages, so it is better to require your renters to purchase a renters insurance.

NOW is the best time to invest in Real Estate! Rental demand has increased in the past few years. Rent is one of the best way to build your wealth. While someone is paying off your mortgage, your property is appreciating. It may not be evident now, but wait for a few more years while the market stabilizes then you'll see the increase in value of your property.  Properties have always gone up over the long term. 

According to NAR (National Association of Realtors), Investors have reported in many cases a positive cash flow converting properties to rental units.  The continued trend of rising rents increases the value of home ownership.

If you are on the look out for properties that you would like to rent out, always consider the location and the state of the property.  For a list of properties, visit www.anchoragehomedeals.com.  If you have a question, please don't hesitate to contact me.

Additional Funds for the Elderly Homeowners

If you are a homeowner aged from 62 years old and above, you may qualify for Reverse Mortgage Program.  Reverse Mortgage Program is a safe plan to give elderly homeowners, like you, greater financial security.  Reverse mortgage is a home loan that allows the conversion of the home equity into cash that may be used as a Social Security, pay for unexpected medical expenses, make home improvements - among other things. There are no restrictions on how you can use the funds, you can spend it as you wish.

The good thing about this loan, is that unlike conventional mortgages, there are no income requirements to qualify for the loan. Borrowers do not need to make any monthly payments unless the homeowner moves out or dies or the loan becomes due.

The money received will be non taxable and will not affect the Social Security or Medicare Benefits. However, the borrower must keep his tax payments and insurance up to date so as not to default on the reverse mortgage.

You can receive the loan payments in 5 different ways:
1. Tenure - equal monthly payments as long as the you live and continue to occupy the property as the main residence.

2. Term - equal monthly payment for a specified number of months chosen.
3. Line of Credit - unscheduled pay-out at times in the amount of your choosing until the fund is exhausted.
4. Modified Tenure - combination of Tenure and Line of Credit option as long you live in the property as your main residence.
5. Modified Term - combination of Term and Line of Credit.

To be eligible for the home loan, you must be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance which can be paid from the proceeds of the reverse loan AND you must live in the home.  The type of home required is a single family home or a 2-4 unit home with one unit occupied by you.

If you want to avail of this loan, you must complete a counseling session with a HUD-approved Counselor. In the Counseling session, the Counselor will explain the legal and financial responsibilities of obtaining a reverse mortgage.  Once you receive the Certificate of Counseling", only then the loan can be processed.

You can get more information on www.fha.gov. Or you may call (800) 510-0301 or you can get a free booklet on
http://www.ncoa.org/news-ncoa-publications/publications/ncoa_reverse_mortgage_booklet_073109.pdf

Anti-Fraud Measure for Fannie Mae, Freddie Mac & Federal Home Loan Banks

The Federal Housing Finance Agency (FHFA) has announced an initiative called the Suspended Counterparty Program that will require the mortgage giants Fannie Mae, Freddie Mac and the Federal Home Loan Banks to notify FHFA whenever an individual or company have a history of fraudulent conduct. Any information of fraud or financial conduct committed by that certain individual or company reported by other government sources will also be considered.

Once an individual or a company is proved to have a history of fraudulent activity, FHFA will determine if the party should be suspended from engaging with GSEs or FHFL Banks.

However, affected parties will have an opportunity to explain why they should be able to continue conducting business with one of the FHFA regulated companies.

The initiative will take effect on August 15, 2012.

How to Save on Homeowner's Insurance

 Premiums of homeowner's policies can cost thousand of dollars a year, but they don't need to eat a big chunk of your budget.  Follow these simple tips and you can reduce your premiums and save a lot of money.

1. Insure Only What's Needed
Focus on rebuilding costs. Some insurance company base their coverage level on the home's appraised value, which includes land costs.  While you need to insure your home and its contents, there's no need to insure the land that it's built on.  According to Kevin McCarty, President of the National Association of Insurance Commissioners, "Use the recent per-square-foot replacement costs in your area - available from your local Home Builder's Association.

Do the comparison and you'll see the difference.

2. Read Your Policy
Make sure to read your policy so there are no surprises when you file for your claim.  Read the fine prints as well. This will save you the tons of headache and money in the future.

3. Upgrade your Security
Installing a smoke detectors, fire extinguisher, deadbolt lock, burglar alarms can earn you a discount on your homeowner's insurance.  There are some cases, wherein the additional costs is offset from the discounts given by your insurance provider. Make sure to check with your insurance company.

Most insurers offer discounts of up to 10% to retirees.  This is under the assumption that retired people spend more time at home therefore cutting down the risk factor because they can react quickly to unexpected incidents. 

4. Maintain a Healthy Credit Score  

Credit report can influence your insurance rates.  Insurance companies consider clean credit to be an indicator of risk factor.  When you have a healthy credit score, you can get a lower insurance premium. Therefore, it is very important to check your credit report regularly and fix any errors that you find.

5. Shop Around
When choosing your insurance provider, make sure to do a comparison shop. You can check with your family and friends.  Whatever you do, be sure to buy from a reputable company so you won't have any problems when filing for a claim.

If you need assistance in choosing your homeowner's insurance provider, please don't hesitate to call me.  I have a list of reputable home insurance provider that can take care of all your needs.  

Four Seasons of Real Estate

Everything has a season - including selling your house. Listing at the right moment could give you better opportunities. Many homeowners are unaware that Spring is the best time to put a home in the market. The ideal month to put your home for sale is actually in the month of April - start of Spring season.  If you are planning to sell your home, the time to get on the market is right NOW! Not next week or next month.   More and more properties will be flooding the market in the next few months, so if you haven't listed your property yet, LIST it NOW!! In Real Estate, when the inventory grows, the price drops - this is a basic supply and demand rule.  The best strategy is to list when the inventory is low because buyers are putting offers on what is available in the market.

Furthermore, the military bases are also expecting more active military and their families to be moving to Fort Richardson Army Base and Elmendorf Air Force Base. If you own a property near the bases, you will surely get an offer.

In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates are at new all-time record lows. The 30-year fixed-rate mortgage average at 3.75% while the 15-year FRM is at 2.97%. Buyers are inclined to purchase their homes now, since purchasing a home right now is actually buying a property at a bargain.

If you are an owner of duplex, triplex and fourplex - RIGHT NOW is the time to list your investment property! This will get you TOP DOLLAR in the market as there is a great demand for these kinds of properties because the rental market is climbing. 

If spring is the best season to sell your property, summer is a good season for families to move since it's between school terms and the weather is warm. According to lendingtree.com, 60% of America's move takes place during summer. People have just received their tax refunds, which can be applied as a down payment.  In the past, Sales peak in April and May while they stay strong in the months of June and July. 

With historically low interest rates, high expected demand in single family home and multi-family homes in the current market, do you still need to think about when to put your property in the market?  If you are planning to sell, NOW is the time!!!

In August, the sales go down as people go away on vacation and start planning for the new school year.  Then sales will go up a bit in the fall before dropping again in the winter as buyers and sellers focus on the holidays. But by January, buyers are hunting again and sales will experience a steady increase until the spring season. 

If you are planning to sell and you need help in listing your home.  Please contact me, I'll be happy to help.  For a list of best buy homes in the market, you may visit www.anchoragehomedeals.com.