Are You A Home Buyer In Need Of Help With Credit Fitness?

Nowdays, since the mortgage crisis, lenders are so very careful to make sure the loans they give out are good and solid. The extra scrutiny they put on you, as you shop for a good lender, means that any blip you may have on your record can determine whether or not you can get one dime out of any institution. Equip yourself with credit fitness. Here is a great article that tackles this important homebuyer concern:

By Chris Kaucnik
Many home buyers now and into the foreseeable future will face tight lending standards and will need to improve their credit score to get prequalified or preapproved for mortgages. Be aware of the following steps your prospects can take for some speedy credit repair to gain lender approval and the best possible rates, especially if they are months away from a purchase:

Credit Card Wisdom

• Paying revolving credit cards down is generally more beneficial than, for example, paying down student loans, mortgage or auto loans.
• Always leave a 30% or higher gap between what you owe on the card and the card’s limit. Lenders look for this minimum gap.
• Use cards with care even if you pay off balances each month because depending upon statement dates, the lender may see big balances.
• Pay down the cards closest to their limits first for speedier credit repair. The lending bank will then see the “gap” it wants to see.
• Do not ask a creditor to lower credit limits. Generally, carrying smaller balances on several cards is better than one large balance on one card.
• Check your credit card limits to make sure the report is correct. Limits may not be reported on all cards.
• Never make a late payment on credit cards or any loan.

Protesting Items

• Protest any unjust negatives, such as late payments, collections that are not yours, and any items not reported as “paid as agreed,” if you paid on time and in full.
• Protest items listed as unpaid that were included in a bankruptcy, and items older than seven years (10 for bankruptcy).
• Focus first on the larger, newer negatives listed on the report.

It is important not to worry about smaller items like incorrect address information or an old employer listed as current. This is, of course, unless there is the possibility of identity theft or the file is mixed with someone else’s.

This is certainly not an all-inclusive list of the steps that can be taken to improve a credit score, but it is a great start for clients needing to focus on their scores before attempting to get preapproved and purchase a home through you.

Chris Kaucnik is marketing director for Home Warranty of America, Inc.

Also see more financial fitness wisdom on Lauri Kent's Financial Page.

Learn about scams targeted at homeowners facing foreclosure

Public broadcasting stations across Texas will air a 30-minute special this month on scams surrounding foreclosure prevention and loan modification. Scam artists are preying on homeowners who are facing foreclosure, promising to modify loans and guaranteeing to save a home from foreclosure. They charge fees up front and then disappear. Many victims lose money and their homes.

Find out how you can help homeowners recognize a scam and what to do if they are approached. See when the special is airing in your market. You can also find foreclosure-prevention resources for homeowners at KeepMyTexasHome.org.

The special was produced in cooperation with Neighborworks America and the Texas Foreclosure Prevention Task Force, of which the Texas Association of REALTORS® is a member. A link to the pdf with schedule for the special, as it airs across Texas, is found at www.LakeConroeRealtyNow.com under Special Notice.

Christmas Financial Fitness

This may not have much to do with the value of your home, but it does speak to surviving the Holidays with all your pennies spent wisely. This is a fantastic piece covering the main traps to avoid in gift-giving.

5 Holiday Shopping Traps to Avoid RISMEDIA, December 13, 2010—Finding the right gift at the right price can be challenging, especially during the holiday season when deep discounts and door-buster sales abound. A recent issue of Consumer Reports highlights five traps holiday shoppers can avoid. "Knowing how to navigate sales, comparison shop, and cut through salespeople jargon is half the battle to stress-free holiday shopping," said Tod Marks, senior editor at Consumer Reports. "Shoppers need to take precautionary measures before purchasing gifts to make sure they are getting the right product, for the right price, with no strings attached." 1. Deep discount come-ons. "Door-buster" sales promise big savings. Consumer Reports found an electric percolator "on-sale" at Kohl's stores and Kohls.com for $61.99, a discount from the regular $69.99. But those prices are higher than the $59.99 manufacturer's suggested retail price. Retailers, especially discount stores, commonly sell below MSRP. Using a Web search, Consumer Reports found better deals. The best price was $30.03 plus $8.21 shipping at Salestores.com. What to do? Comparison shop before buying and don't worry about missing a sale, it's likely that another one will come around before the season ends. 2. Gift-card gotchas. New federal rules for gift cards limit issuers' ability to charge certain fees and impose expiration dates. Inactivity and service fees can be charged only if a card hasn't been used for at least one year. But issuers can still charge fees to buy cards, as they do for bank-issued variety, those that bear a credit-card logo. For example, expect to pay $3 to $7 for an American Express gift card. Also, gift cards are not protected if an issuer goes bankrupt. If that's the case, the card could be worthless. Beyond that, many people never get around to spending their gift cards. A quarter of people surveyed by Consumer Reports in October 2009 who received gift cards the previous year said they hadn't redeemed their almost one year-old cards. What to do? Give cash or a check. Cash never expires or loses its value, and is good anywhere. If the check is never cashed, the money stays in your bank account. 3. Extended-warranty pitches. Salespeople push service plans because retailers keep 50 percent or more of what they charge for them, but they are notoriously bad deals. Some repairs are already covered by the standard warranty that comes automatically with the product. Consumer Reports' data shows that products seldom break within the extended-warranty window of coverage, when items do break, the repairs, on average, cost about the same as the warranty. What to do? Some credit cards automatically extend the manufacturer's warranty on anything purchased with them, so check the card's website. Even if the warranty expired, check with the retailer or manufacturer, which might choose or be legally obligated to repair and make good on a product that prematurely fails or otherwise shows signs of a defect. 4. Return-policy limitations. Some retailers relax their return policies during the holiday season, but don't count on it and always learn the rules before buying. Some companies have different return policies for in-store, online, or mail-order purchases. What to do? Keep the receipt and let the recipient know the return policy. If the store provides a special gift receipt, include that with your gift. 5. Restocking fees. Many items, especially electronics and special orders, are subject to restocking fees that range from 10–25 percent if they are not returned in a factory-sealed box. What to do? Don't open the package unless you're sure you want the item inside. Items such as computer software, music CDs, and movie DVDs generally aren't returnable if the seal is broken. If a fee is charged, try to negotiate a partial refund, but never pay a fee if the item is defective.

Click here for the current local housing trends:
http://lauri.housingtrendsenewsletter.com/

The Long-Distance Move

Not much has changed in the last five millennia where long distance moves are concerned. Sure, these days we don't have to circle our wagons to shield ourselves from Indian attacks. Instead, we circle bubblewrap around our valuables out of fear that the burly mover might enjoy his midday snack casually sitting on top of the box containing grandmother's ancient soup tureen, passed down for nine generations. But relocating to a new place that is economically different, culturally different, climatically different -- or any other kind of different -- is a shock to the system. It is good to know what can be done to ease into a new location as quickly as possible. Moreover, equipping yourself with a little knowledge and a helpful network may save you a whole heap of money and time, by knowing where to go for this, who to trust for that, and so on.

And so I thought it good to share the following article. Being an international real estate executive and a former temporary resident of the Middle East, India and South Africa, I am very sensitive to the needs of my international clients. It is important to note, however, that domestic moves can be just as difficult as international moves, and of the same reasons. Here is a good article  I found that addresses some of the things you can do to ease into your new environment, whether you are moving her to Texas from Oslo, Ontario, or Oregon.

Advice for Relocating Clients: How to Land on Your Feet After an International Move

By Sharon Harvey Rosenberg and Myscha Theriault

RISMEDIA, November 30, 2010—(MCT)—We arrived on Guam (from a relocation move) with emergency cash, documents and an advanced shipment of necessary belongings. Unfortunately, an 8.2 earthquake destroyed our hotel and damaged the unloading docks, leaving us—at least temporarily—with just a rental car and the clothes on our back. Clearly, it was time to re-evaluate our settling-in strategy.

Even under normal circumstances, unfurling in a new location requires more than just a simple unpacking strategy. Here are our top tips.

Networking: Check out international organizations that offer networking opportunities to global travelers. For example, Hash House Harriers, an international running club formed in the late 1930s, has chapters all over the world, including Guam, Saudi Arabia and Thailand. Meetup.com allows individuals of any interest category to connect throughout the United States. In Kuwait, there are both Canadian and American citizens groups, as well as a French language association.

Nora Dunn (www.theprofessionalhobo.com) is a member of Rotary International, a global service organization that not only provides her with immediate opportunities for service, but an instant network of local contacts that are happy to help a newbie. And don't forget university alumni associations, trade groups and other professional organizations, with chapters in the U.S. and abroad.

Infrastructure: During international moves, an ironing board, French press and chairs rank high on our must-have list. Other seasoned travelers, with special needs or diets, ease the pain of relocation by traveling with back-up supplies of medicine, medical equipment and cooking supplies.

During an extended stay in Scotland, Greenland and Iceland, one traveler filled individual Ziploc bags with coffee, spices and other nonperishable food items. The storage bags were stuffed into paper towel tubes and then stashed in her luggage. This strategy created a portable supply of kitchen ingredients.

With that stock, she prepared meals while staying in rented homes in Europe. Donna Frose, an international teacher whose career has taken her to the U.A.E., Singapore, Kuwait and Ecuador, has a different set of priorities. Arriving with one set of bed linens and a pillow, she immediately searches out a couch, membership in the local Canadian Women's League chapter and the nearest diet cola supply.

Routine: New digs mean new routines for everything from banking, grocery shopping and medical care. While living in Paris, we used an informal alumni association to help us find the best deals in entertainment, groceries and clothing. For example, an old college friend provided information about great parties and events, including a poetry reading at an elegant bookstore in the Latin Quarter on the Left Bank of Paris.

After moving from New York City to South Beach in Miami, a network of friends and family helped us find affordable housing, supermarkets, health care and restaurants.

Click here for the current local housing trends:
http://lauri.housingtrendsenewsletter.com/

And of course, visit Lake Conroe Realty Now's website for more information about Lauri Kent and her team. Contact Lauri Kent with your Houston Texas area real estate questions.

Renters: Grab A Stack Of 1099 Forms. Come January 1st You'll Be Needing Them

"Honestly, it's an outrageous burden for rental owners."

That's from Tom Schatz, president of the watchdog group Citizens Against Government Waste. This is the second thing he said after hearing about this burdensome requirement that really sticks it to home renters in The Small Business Lending Fund Act, which passed last September 18th. It stipulates that rental property owners must issue 1099 forms to any work done on their homes over $600. What was the first thing Tom Schatz said? "You've got to be kidding me!" No, we aren't kidding. It takes effect on January 1, 2011.


So, if you are a renter and need a plumber to fix a sink at your rental property,  Get ready to deal with more than plumber prices - get ready to deal with the Internal Revenue Service.


To read about this in-depth, go to Lake Conroe Realty Now with Lauri Kent Financial News where we have the whole article regarding this issue.

Capital Gains Double-Whammy On the Horizon

As if we weren't already exercising ultra-caution in the manner and timing of our property purchases and sales, Uncle Sam has put out another taxation land mine to avoid. Even though it's nothing but bad news, as usual, being forewarned is being forearmed, so here is a brief primer on the new Patient Protection Affordable Care Care Act, and how it may be funded in part by the sale of your home.

From Sandy Botkin, CPA:

There is a BIG nasty surprise awaiting a number of people starting in 2013 that has NOT been mentioned by the media. Under the new Patient Protection Affordable Care Act (PPACA), single taxpayers who earn over $200,000 of Adjusted Gross Income (AGI) or married taxpayers filing joint returns who earn over $250,000 get hit with a major surprise. They will have to pay a new 3.8% Medicare surcharge on all interest, dividends, royalties etc. This seems to be covered by the media. What has NOT been mentioned is that this Medicare tax also applies to capital gains. Thus, it applies to stock and bond sales, mutual fund gains and sales etc. In addition, it could even apply to the sale of your principal residence on all appreciation beyond the first $500,000 of gain.

Example: John and his wife earn $275,000 a year. John sells his home for a $1,000,000 profit. He can avoid tax on the first $500,000 of gain. John not only pays capital gains tax on the remaining $500,000 but also pays an additional 3.8% surcharge.  If John were selling his second home, there is no exclusion. Thus, he pays this tax on all gain.
 
This is a major bomb for those of you with substantially appreciated real estate. You might want to consider selling your home or second home before 2013.

See this and more on Lake Conroe Realty Now with Lauri Kent Financial News.

Home Sellers Need To Know Home Buyers

Are you  in the market to sell your home? If you want to be  quick and successful about it, it is best to know the traits of today's home buyer. Especially if you live in a neighborhood that has a lot of homes that have not moved, doing a little extra research may give you the edge over comparables in the area.

A good real estate agent will be able to help you in that process. Or home sellers in the Houston, Spring, The Woodlands, Conroe/Lake Conroe Texas market areas, get a free evaluation of your home so you know what you have to work with. Start by completing our free form for initiating a free evaluation.

Ready for a little character sketch of that buyer? Here you go...

5 Traits of Today's Home Buyers

A survey by American Lives, a consumer research firm in California, conducted a study for the trade magazine Builder to answer that question. Here are their conclusions:

· They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.
· They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.
· They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.
· They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.
· Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.

Source: Inman News, Mary Umberger (10/27/2010)

This is just a short list, and does not include all the concerns that may come into play in your area. Here in the Houston  and The Woodlands, it is important to evaluate your school system. I have been finding that most of the buyers out there right now in the Houston area are young and first time buyers.  For home buyers in Spring, The Woodlands, and Lake Conroe markets, I have noticed that the average home buyer's age is around 25-27 years old, and they are looking for a newer home around 1800+ Sq ft. Their typical price range is 120,000-170,000

So how do you translate this information into how you can most successfully sell your Woodlands home or Lake Conroe-area home ? Give me a call and we can evaluate it. Also check out my website for some of the homes and properties of my clients. For higher end properties check out my Lauri's Featured Properties page. For properties that fit nicely into this market's Home Buyers' range, check out my listings on my website called Lauri's Super Affordable Real Estate Finds. No matter what your property type, there is someone out there who will be the perfect owner for it. Let me help you to put you together!