Top home improvement values

Homegain.com recently provided a list of top home improvement values that bring the highest returns for the investment. What is no surprise is that decluttering and cleaning are at the top of the list. Home buyers will frequently turn away quickly from a home that is dirty and cluttered. It typically costs very little to clean a home and throw away items that take up space without adding value. Let your home shine so others can see themselves living there. Get rid of the things you don't need...old newspapers, junk mail, expired magazines, catalogs, trash...on and on. After you eliminate the clutter; clean the walls, countertops, appliances, floors, lamps cabinets, etc. Make your home shine. Although it costs little, it will set your home apart, may put it on a buyer's short list and will probably show off your home's best features.

Another low-cost winning home improvement is to brighten up the place. Your home will be more inviting after you clean, and an inexpensive coat of paint in a neutral, light tone will do wonders for the ambiance of the rooms. Neutral colors will improve the flow between rooms and will likely make the rooms appear larger. You should also replace missing light bulbs and add a few lamps to change a room from dark to bright and make the room more calm and refreshing.

Stage your home. Move furniture into groupings of typical living areas such as areas for conversation, eating areas, and reading or TV groupings. Make the room appear more spacious by not crowding too much furniture in one polace. Eliminate items that collect dust but don't fit the theme of your room. Wilted and dying plants as well as out-of-date flower arrangements or too many pictures on the walls make a room too busy and less inviting. Do not have an over-abundance of family photos. Buyers need to imagine themselves in your home....not be distracted by personal items.

Provide curb appeal outside the home and make your yard inviting. Give the yard a pleasant and livable appearance with neat and attractive landscaping that flows. Keep your lawn mowed. Get rid of weeds and dying shrubs. Replace them with neatly trimmed landscaping. It doesn't have to be expensive. Add some low-cost mulch to blend plants and shrubs. Bring in a few spashes of color with plants in season.

These tips can move your home higher up the list above others for potential buyers. Often buyers will cruise a neighborhood and target homes to view that have an inviting experience. But don't stop at the curb. Make sure you keep the buyer's interest when they come inside with the pleasant and uncluttered appearance of the rooms. Many homes are not selling and some are not even getting offers in today's market. With low cost, minimal planning and a little elbow grease, you can make your home stand out from the others and increase prospects of a successful sale.

Eight Important Things to Know about a Mortgage

So, you are ready to buy a home and want to understand basic points about a mortgage? Here is a simplified guide on important things you need to know regarding mortgage loans. For the full description of these terms, go to my source, The Smart Borrower Center on Lending Tree's website at lendingtree.com. Look under "Tools to help you borrow better."

Compare these important factors when choosing a mortgage:
1. Principal - The amount you are borrowing to buy your home. When you shop for mortgages, lending institutions will tell you how much they are willing to lend and help you determine what you can afford.
2. Type of mortgage - Usually fixed or adjustable rate mortgages. With a fixed rate, you usually pay the same amount each month for the life of the loan. This can mean less risk but a little higher interest rate. An adjustable rate mortgage (ARM) may provide a lower rate but change with the market, which can increase your risk and payment amount. Discuss options with your lender.
3. Interest rate - Consider the annual percentage rate (APR) which takes into account the interest rate as well as the other costs in the loan. Review with the lender how your interest rate will change if you choose an ARM.
4. Monthly payment - Think about the amount you can comfortably afford to pay each month for your mortgage. The lowest interest is not always the best deal. You will want to reduce your principal with each payment so you can build equity and use that money for a down payment when you move to a new home.
5. Mortgage term - the number of years your loan will be active. Shorter-term loans carry higher monthly payments, and longer-term loans carry lower monthly payments. The term of the mortgage can be set based on what you can afford to pay each month and how soon you wish to pay off your loan.
6. Discount points - These are offered by some lenders as a way to lower the interest rate. One point equals one percent. For each point, The Smart Borrower Center estimates yoy can lower your interest rate 0.25 percent. Think about how long you plan to keep your home when deciding what makes sense about paying discount points.
7. Lock-ins - A specific interest rate and possible discount points quoted by a lender. The market can change while you are looking for a home. Locking in the interest rate may help protect you against rising interest rates.
8. Closing costs - Fees charged when closing mortgage deals. This can run up thousands of dollars on what you must bring to the table at closing. Be sure to get a good faith estimate from your lender so there are no hidden costs.

Best wishes as you shop around for a good lender, good interest rates, and the best match for your individual needs. I can give you the names of reputable lenders in the Chattanooga, TN area who will help you find what you pre-quality for in a loan.

Foreclosure Alternatives - Possible Help with HAFA

Are you worried about foreclosure? Having trouble keeping up with your mortgage payments? Possibly even owe more than your home is worth? Has your income gone down or your mortgage payments gone up?

Homeowners who are struggling to keep up with mortgage payments may find help through the 2009 Making Home Affordable Program (MHAP). This program is designed to help stabilize the housing market and help eligible homeowners. There are alternatives that homeowners should investigate. A word to the wise.... Beware of scams - of those who would take advantage of you, pressure you and try to make money off your difficult situation.

One alternative is the Home Affordable Modification Program (HAMP), designed to make mortgage payments more affordable for eligible homeowners. This program can help homeowners avoid foreclosure and the associated drop in their credit scores. Read more at www.makinghomesaffordable.gov.

Another alternative is the Home Affordable Foreclosure Alternatives program (HAFA) which is designed to streamline short sales and provide a uniform process and standard forms. It also provides incentives to families and to their mortgage servicers. Eligible homeowners who sell their homes under HAFA can qualify for $3,000 to help cover moving costs to another home.

You may ask, "What is a short sale?" A short sale is an alternative for homeowners who cannot qualify to stay in their homes through loan modification. The servicer (represents the lender) allows the homeowner to list and sell their mortgaged property even when the net proceeds are less than the total amount due on the loan. With plummeting home values in many locations, this can be a time-consuming but more palatable alternative than foreclosure.

Please note, this is not hassle-free. However, if approved and successful in the short sale, a homeowner can get out of a difficult mortgage and maintain a more desirable credit profile than with foreclosure. Be warned that your credit score will still take a significant hit with a short sale. There are a lot of hoops to jump through, but the potential for a $3,000 incentive and less severe credit score repercusions can make the effort worthwhile. Homeowners who go through a short sale can become homeowners again perhaps in two years as opposed to the three or more after a foreclosure.

States may differ, and types of mortgages affect the approval process. Carefully consider your alternatives. You may have equity in your home and just need a break with a lower payment through a loan modification program. Or you may be struggling so much that you have missed payments and face foreclosure unless you can work with your lender. Alternatives to foreclosure are not easy. There are requirements that must be met, but you might be able to avoid foreclosure.

You will find a number of resources and links at financialstability.gov. Consult a tax professional and/or attorney for the particulars regarding your own situation. Deliberate youro alternatives carefully, and do not be drawn into scams.

Outdoor Kitchens - Hot New Trend in Homes

Outdoor kitchens....you've seen them on HGTV. They are hot, and people who like to entertain often want this option; but the question remains, "What should you look for in an outdoor kitchen?"

The outdoor kitchen is attractive now, but what will it look like in 2 years? In 5 years? In 10 years? Are the products durable and weatherproof?

You find seating for lots of guests, but is the ventilation adequate and designed to keep smoke and odors away from guests? The space will not be pleasant if the design is not optimal. Who wants to sit outside and cough from smoke blowing back in their face or smell cooking odors rather than the great outdoors?

Assure the designer and installer will stand by their work. Check with resources and find a reputable contractor/designer/installer.

An outdoor kitchen can be an enjoyable bonus for your family. Whether you are planning to add one to your home or considering a home with this feature, select carefully; and don't make your decision based on looks or cost alone.

Adapted from "Daily Real Estate News," July 2, 2010

Importance of Home Loan Preapproval

Buyers who want to set realistic expectations for a home purchase should consider obtaining a loan pre-approval letter from a lending institution prior to shopping for a home.

Buyers often have a wish list for the size, style, neighborhood and cost of a new home. They may begin searching for a home in glossy real estate home finders, on-line searches and just driving through neighborhoods they like. However, they would be wise to know up front the price range for which they qualify.

A trip to a lending institution which they trust is a good first step prior to shopping for a home. The buyer can complete an application (which may have a small fee) and find out the price range for which they qualify. Otherwise, they may shop outside their qualified range and waste their own and a realtor's time. They can become disappointed if they find a home that meets their wishes but for which they cannot obtain a loan.

A buyer's credit rating, income and other factors will affect the home price that a lender will approve. Once they obtain a price for which they are approved, they can begin their home search with realistic expectations. Some home owners want proof of a potential buyer's loan pre-approval prior to considering an offer by that buyer.

For a buyer to maximize their time searching for a home and to be better prepared to make an offer and probably shorten the time to close the sale, loan pre approval is an important step toward moving into the home of their choice.

Foreclosure statistics - Who are They?

Have you wondered why so many homeowners become foreclosure statistics? If you think it was primarily because consumers were outwitted by lenders, you might want to think again. Research at the University of Arkansas shows outwitting by lenders was not the main stream.

The U AK study shows that most foreclosures were in affluent and educated households with lower numbers of children in geographic areas that had experienced very rapid real estate acceleration. Research divided households into 21 life stage groups to determine which groups experienced the most foreclosures.

The group with the most foreclosures were affluent adults born between mid 60's and early 70's. This group had aggresive investors. The group that experienced the highest number of foreclosures may have the best consumer protection laws, given their education and background. More creative policy implications may be needed based on this research.

Completion of Short Sale and Foreclosure Certification

I recently completed in-class and on-line instruction to receive the SFR (Short Sales and Foreclosure Resource) certification from the National Association of Realtors (NAR)


The SFR designation is helpful in today's distressed real estate market and is the only one of its kind that focuses on the buyer's and seller's side of distressed property sales.


Call on me if I can be of assistance to you. You may reach me at the Exit Upward offic at 423-847-8001 or 423-354-9294.