While they make for some funny movies, real-life money pits can cause great distress and financial burdens.

Here are some tips to avoid buying a money pit:

• Check the foundation. Some of the biggest problems in a house can be a result of a poor foundation. To check the foundation yourself, look at the size of the trees near the home and how close they are to the home. Large trees may have roots that cause the foundation to crack over time. On the inside of the home, check hard flooring for cracks and gaps. Looks for cracks in the drywall in corners and around windows.

• Look for water damage. Some of the biggest repair bills on a home come from water-related hazards. Mold and rot can also result from unattended water issues. Places like the bathroom, kitchen, and laundry area are the best places to look for water damage. Inspect the caulking in sinks and tubs and seals around windows. If you find any mildew and/or cracks, you could be headed into a money pit.

• Attend inspections. Even though you will outsource most or all of your inspections, you should still attend them. When you are there with the inspector, you can get a better idea of the items that may need repair. The inspector can give you their professional opinion, in person, of how serious the repairs could be. That kind of information can be better to receive in person rather than read on a written report.

• Thoroughly read the inspection reports and disclosures. Read not just the inspection reports but any reports and disclosures provided by the seller. Some of those disclosures might include: repairs the seller completed themselves, water issues, non-functioning systems, and recommendations to have a specialist look at something.

• Obtain multiple repair bids. Sometimes you buy a home knowing that it will take a little work. If there is anything that might need to be fixed, obtain multiple repair bids from reputable contractors while still within the inspection contingency time frame of your contract. These repair estimates may provide the basis for any renegotiation that may occur with the seller.

A Name in Unique, Framed Print: $59.99

Customized 3D Crystal: Starting at $70

Universal Remote Control Pillow: $39.99

Donut Maker: $19.99

Gaming Chair: $43.39

Stainless Steel Ice Cubes: $14.99

 Recycled Vinyl Record Bowls: $26.99

Personalized Key Rack: $29.99

Glow in the Dark Night Light Decals: $48.00

Herb Growing Kit: $69.95

Cute Music Speakers: $99.95

Wireless Grilling Thermometer: $69.95

Photoclip Mobile: $17.00

Tall Tyrian Vase: $38.00

• Less competition. The wintertime sees fewer buyers on the market, so for you, that means less competition. People are less likely to move in the winter because of weather, the holidays, etc., so many people put off looking for a home until the spring. Many families may not want to move their children in the middle of the school year, keeping them from house hunting. Less competition for you means a better chance of getting a great home at a lower price.

• Sellers need to go. When people are selling their home in the winter, it can often mean they have to get out quickly because of a job transfer or other pressing matter. Because many sellers may need to get out fast, they are more likely to bend on negotiations with the buyer.

• Smoother process. Because lenders have a lot less paperwork in the wintertime, transactions generally go through more quickly and with a lot less hassle.

• Lower taxes. Property taxes are usually determined by how much you paid for your home. Therefore, if you snag a great deal on a home during the winter, your property taxes will also be lower. Also, it may be a good idea to purchase a home before December 31. Homebuyers may be able to deduct mortgage interest, property taxes, and some of the costs associated with a new home purchase from their income taxes.

• Lower interest rates. Mortgage rates don’t generally follow a seasonal trend; however, right now, mortgage rates are still near record lows. Most likely, interest rates will remain low throughout the holiday season.

Happy Holidays!

The new Home Affordable Refinance Program (HARP) that will allow many
underwater homeowners to refinance their homes is being modified. HARP was first
introduced in 2009; however, not many homeowners utilized its benefits. The new
HARP program will allow more underwater homeowners to qualify and take advantage
of the program.

What are the qualifications?

• Borrowers must be current on the mortgage at the time of the refinance, with
  no late payments in the past six months and no more than one late payment in the
  past 12 months;

• Fannie Mae or Freddie Mac must back your loan;

• You must be currently employed and have a steady income;

• The mortgage must have been transferred to Fannie Mae or Freddie Mac no
  later than May 31, 2009; and

• The mortgage must be on a one-to four unit dwelling that serves as your
  primary residence.

You are not eligible for HARP if your mortgage is FHA, USDA, or a jumbo
mortgage.

It’s important to remember that HARP will not delay or stop foreclosure on
your home. HARP is meant to give homeowners who are currently employed, current
on their mortgages, and have lost home equity a chance to refinance at the
current low mortgage rates.

Borrowers will be able to take advantage of HARP even if they owe more than
what their house is worth. The previous version of HARP only allowed borrowers
to refinance up to 125 percent of the home’s appraised value. Millions of
borrowers couldn’t benefit from HARP when it was first introduced because of
that cap.

HARP has been extended through Dec. 31, 2013. Fannie Mae and Freddie Mac will
send instructions to lenders by November 15, 2011. Some lenders may start
offering refinances under the improved HARP by December 1, but the timing may
vary, according to the FHFA.

If you’re an underwater homeowner, this new version of HARP could finally
allow you to refinance your mortgage at an all-time low interest rate you’ve
heard about but couldn’t qualify for.

Do you want to buy a new home, but you haven’t saved up quite enough money yet for a down payment?
Are you already a homeowner on a tight budget? Do you just need to save more
money so you have it for a rainy day?

Here are 30 money saving tips to help you achieve your goals.

1. Budget. Creating and sticking to a budget is the best way
   to start saving now.
2. Sell the stuff you don’t need. Have a yard sale or place
   items in your local classifieds or on eBay, Craigslist, or Amazon.
3. Limit eating out. By preparing your meals at home, you’ll
   not only save upwards of $200 each month, but you might also save some extra
   pounds from avoiding all the fast food you’d otherwise eat.
4. Leave the plastic home. When you go shopping, only carry
   cash. Once the cash is gone, there’s no credit card to fall back on.
5. Be thrifty. Don’t be afraid to shop at thrift stores or
   consignment stores.
6. Save energy. Turn off and/or unplug your appliances and
   lights when you’re not using them.
7. Skip Starbucks. Make your coffee at home instead of buying
   it at the coffee shop.
8. Wash your own car. You don’t need the $20 interior/exterior
   cleaning. With soap, water, and a little elbow grease, you can save a lot by
   washing your car yourself.
9. Consider eliminating cable or satellite T.V. Many people
   use Hulu, Netflix, and other online sources to watch T.V., movies, and
   sports.
10. Buy generic brands. This includes over-the-counter
    medications, prescriptions, when applicable, all available grocery items,
    etc.
11. Clip/Print coupons. Obtain coupons from newspapers,
    mailers, group coupon sites, etc. There are many classes offered around the
    nation – some of them free – to teach you how to save hundreds each month by
    using coupons.
12. Know before you go (shopping). Create weekly menus and
    shopping lists and buy only the items on the list when you go shopping.
13. Carpool. Carpool to work with your colleagues or use public
    transportation.
14. Stay healthy. Exercise, eat right, and wash your hands
    frequently. Healthier people spend less on medical expenses than unhealthy
    people.
15. Use energy-efficient light bulbs. You’ll save on energy
    bills and since energy-efficient light bulbs last longer, you’ll buy fewer bulbs
    over time.
16. Use homemade cleaning supplies. Use old-fashioned vinegar
    and baking soda to clean your home.
17. Avoid overpriced snacks. Avoid snacks and drinks from the
    gas station, convenience store, and vending machine.
18. Filter and bottle your own water. You can purchase
    inexpensive filtering containers for your water, such as a Brita water filter,
    if you want filtered water. Also, if you have a filter in your refrigerator, you
    can use that water. Reuse BPA-free containers to carry your own water with you
    to avoid buying overpriced bottled water.
19. Stay away from ATMs. If you need to get money out of the
    ATM, plan ahead and only withdraw it from your financial institution to avoid
    paying additional fees.
20. Auto-withdraw savings. Automatically withdraw a
    predetermined amount of money from your checking account that goes into a
    separate savings account. When the money is automatically withdrawn, you
    generally don’t even notice it’s gone.
21. Consolidate and pay off debt as soon as possible. Avoid
    paying too much interest by making additional payments each month or adding to
    your monthly payment. You may also be able to consolidate your debts to a lower
    interest rate.
22. Avoid overdraft fees. Be aware of your checking account
    balance and when automatic payments are withdrawn. Sometimes banks will set up a
    line of credit if you qualify so you can avoid overdraft fees.
23. Avoid credit cards with annual fees. The best way to do
    this is to not apply for credit cards with annual fees. The fees often don’t
    justify the rewards. Smaller banks and credit unions often offer credit cards
    with no fees.
24. Do regular scheduled maintenance on your vehicles. Don’t
    forget your regular oil changes. Remember to check the air in your tires often,
    and use the grade of fuel that the owner’s manual recommends. These small acts
    can significantly lengthen the life of your car, giving you years of use.
25. Cancel subscriptions. Don’t subscribe to newspapers or
    magazines. Almost everything we want can be found online for free.
26. Borrow books from the library. You usually only read a book
    once, so why pay full price for books when you can check them out at the
    library.
27. Drive your car as long as possible. Drive your car as long
    as you safely can.
28. Pass on extended warranties. A $100 two-year extension on a
    $300 product is just not worth it. Warranties are insurance, and we rarely need
    to insure such a small amount.
29. Agree to limit gift giving. Agree in advance to limit the
    gifts you exchange during birthdays and holidays and save everyone money.
30. Find free local activities. Explore your town’s public
    parks. It’s likely that your town or a nearby town has free outdoor movie
    nights, museum days, greenways, libraries, festivals and so much more.

The recent downgrade on the U.S. debt should technically raise interest rates on consumer loans; however, the cost to borrow has actually decreased. The average 30-year fixed rate mortgage hit a low of just 4.32% last week, according to Freddie Mac.

Many analysts believe that the worst of the price decline is likely over. While we won’t see a drastic increase in prices, we likely won’t see much more decrease either. Once there are clear signs of recovery, demand will pick up and your competition will increase, so now might be a great time for you to buy a house.

If you’re a potential homebuyer, this news alone might compel you to run out and start house hunting, but just because mortgage rates are at an all-time low and housing prices have declined, there are other financial factors you may want to consider.

• Getting preapproved. Have you been preapproved for a home loan? Because home prices and interest rates have decreased, buying a home has become easier for some people. However, qualifying for a home loan has become increasingly more difficult. It takes a higher credit rating and more financial responsibility to own a home today than it did during the housing boom around 2005 when nearly anyone could qualify for a home loan.

• Down payment and closing costs. Remember that buying a home includes upfront fees and costs. If you haven’t saved, now may not be the right time to buy a home.

• Maintenance and repair. According to the guidebook Home Buying for Dummies, you should budget 1% of the home’s purchase price annually for maintenance.

• Utilities. A single-family home is generally larger than an apartment. You will need to factor this into your monthly costs.

• Property taxes. The median property taxes paid on homes in the U.S. is almost $2,000 per year, according to the U.S. Census Bureau. Aside from the mortgage itself, this is generally the biggest cost of home ownership. Taxes can increase as time goes on, so make sure you can be financially prepared for that.

• Homeowners insurance. Your home has to be insured, so ensure you can afford it.

• Homeowner association (HOA) fees. If you live in a condo, townhome, or neighborhood that is regulated by an HOA, you could pay up to several hundred dollars each year in HOA fees. These costs are not fixed and can increase over time.

As far as the market goes, now is a great time to buy. Many buyers are finding beautiful homes at affordable prices for less than what they’re paying for rent. If you feel that you are prepared, you’ve saved enough money, you qualify for a mortgage, and you know you can afford all the costs involved, then now is a good time for you to buy a home.

 Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose on the property. Not all properties qualify for short sales either, so before you make the decision, speak with your lender first.

 You may think you’ll save money trying to go through the process on your own. However, it’s important that if you choose to place your home on the market as a short sale, you hire an experienced short sale real estate agent. Here are just a few reasons why:

• In many short sale cases, the bank requires it. The bank wants to ensure that your property will get the marketing exposure it needs to sell for top dollar. Many properties that are For Sale By Owner (FSBO) don’t get the exposure they could by listing with an agent.

• The bank generally pays for the real estate agent as part of the short sale. For that reason alone, you should hire an experienced agent.

• The short sale process is very complicated and can take time. Let an agent with short sale experience handle the process, deal with the bank, gather and submit all necessary paperwork, and market your property to sell. Banks know that if they work with a Realtor, the paperwork will likely be processed in a timely manner.

• The laws regarding short sales continue to change and are bank specific. If you have any questions, an experienced real estate agent can help you get them answered.

• A real estate agent with short sale experience knows how to communicate and negotiate with the bank.

• An experienced agent can also communicate and negotiate with the buyers’ agent.

Real estate agents work in the market every day buying and selling houses. They are familiar with the process. If you qualify for and plan on a short sale for your home, hiring a real estate agent with short sale experience is your next crucial step.

Just contact us for more information and we will be more than happy to explain the entire process.

Around 80% of all home searches begin on the Internet. Through all the resources available, homebuyers can conveniently search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and street views of neighborhoods and homes. You’ve probably defined your goals and have a pretty good idea of the type of home you want. By the time you reach your real estate agent’s office, you are halfway to home ownership.

Good real estate agents will listen to your wants and needs and arrange to show you only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well. If you are a motivated buyer, it shouldn’t take too long for you to find your new home.

When rating the inventory of homes you are shown:

• Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
• Your agent can provide you with a print out of the listing for you to make notes on. Ask for a listing print out for every home you view to help you stay organized.
• Take notes of unusual features, colors, and design elements.
• Pay attention to the home’s surroundings. What is next door? Do larger homes tower over your single story? What is the parking situation like if you want to have guests over? Does the neighborhood seem well kept?
• Do you like the location? Is it near a park or a power plant?
• Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest.

When you know how to start your search for a new home and you have a good agent to assist you, the home buying process should be enjoyable, and you can feel confident in your decision.

Nearly nine in 10 Americans say home ownership is an important part of the American dream, according to the latest New York Times and CBS News poll conducted June 24-28 of 979 adults.

Overall, the majority of Americans polled also said the government should do more to help improve the housing market, and they mostly blame financial institutions for the sluggish housing market.

Here are some of the findings from the poll:

▪ 54 percent of those polled say the government should be doing more to improve the housing market. Only 16 percent say the government should be doing less. In fact, support for helping people who are facing financial distress from housing is higher than support for helping those who have been unemployed for several months.

▪ 53 percent say the government should help in providing financial assistance to those who are having trouble paying their mortgages.

▪ Nearly no one surveyed was in favor of discontinuing the mortgage interest tax deduction, which government leaders have been eyeing as part of budget cuts. (Learn more.)

▪ 42 percent of respondents blame lenders and 29 percent blame regulators for the housing crash.

▪ About 66 percent of Americans say strategic default — that is, when underwater home owners stop making payments on their mortgage even though they have the means to keep paying — is not justified. Nearly 30 percent of those surveyed say strategic default is justified.

TO VIEW MORE INFORMATION

Now that we’re halfway into 2011, what are the biggest home trends new homeowners are seeing this year?

1. McMansions are out.

 The era of the McMansion is over, according to the 2011 edition of “Emerging Trends in Real Estate,” co-published by PricewaterhouseCoopers and the Urban Land Institute. Baby boomers are scaling down to smaller, more manageable homes. Also, first-time homebuyers are buying smaller, more compact homes in walkable neighborhoods.

 Homebuyers are looking for more modest homes that accommodate a tighter budget and are more practical. According to the National Association of Home Builders, the median size of new U.S. homes fell from 2,277 square feet in 2007 to 2,135 square feet in 2009. 

 The problem? As the baby boomers downsize, who will buy their large, suburban homes?

2. Kitchens are in.

 The kitchen is the heart of the home.

 “Even as the footprint of new home construction shrinks, the size of the kitchen will not,” said Rebecca Kolls, senior director and consumer strategist of home and garden at Iconoculture. “It is the gathering place, and consumers will forego space elsewhere to keep their kitchens functional for everyone.”

 There is a growing trend in “invisible appliances” where the doors will blend with the cabinetry to create a unified kitchen decor.

 Although granite is still the number one choice for countertops, other interesting products like Butcher block tops, poured concrete, glass and aluminum are entering into some kitchens. Homeowners want products that reflect their individuality but still make their life easier.

 Multifunctional appliances are becoming increasingly popular. Kitchen carts that double as workspace and shelving and pullout faucets with different spray models are contributing to new, multifunctional kitchens.

3. Going Green isn’t going away.

 It’s not really a new trend, but going green is here to stay. You can make an impact on the environment – along with your utility bills – with a few simple switches, like replacing existing kitchen and bath fixtures with water-saving ones. Fixtures that have been certified to meet the Environmental Protection Agency’s (EPA) WaterSense® labeling criteria are the best bet, as they offer water-savings and provide superior performance. Buyers want better wall insulation, better insulated (higher “R value”) windows, better sealing duct work, low energy LED lighting, and Energy Star-rated appliances. Many builders are now offering energy-efficient homes as standard.

4. A little bit country.

 It’s not necessarily the country style from the 1980s with wallpapered farm animals in bonnets plastered all over your walls. In 2011, homeowners are going for a more casual, toned-down look. “Whitewash instead of pure white,” says Sarah Richardson, a Canadian designer and HGTV host. “Well-worn woods vs. exotic ones create a rustic elegance,” Richardson says, “and will stay around a while.” More barn-style wooden doors will make their way to basements, closets and bedrooms. They can save space or conceal a large area for privacy.

5. Scaled Down Bathrooms.

Just like big homes, big bathrooms with doorless showers and massive whirlpool tubs are losing steam.

 Many homebuilders aren’t even building large bathrooms anymore. People want more practical and functional bathrooms that take up less space – leaving more space for the kitchen and other living areas.

 Adding linen closets and more storage space to the bathrooms is also in.