Real Estate Information

Lenders require everyone to purchase title insurance as part of the cost of your home loan. But loan title policies protects the lender, not you. For self-protection in the event of any unforeseen title issues, which could postpone closing indefinitely, buyers must purchase separate owner’s title insurance. Is it necessary and really worth the cost? is the question every buyer must answer for themselves. Here are some considerations:

Closing and Title

Before closing, the closing attorney runs a routine check on title to reveal any liens or title defects against the property. Should this check reveal any liens, these must be cleared before the parties can close. Mechanic’s liens are common, where a contractor performed maintenance or repairs on the home and wasn’t paid (or paid satisfactorily in his estimation) so he filed a lien against the property. You will need to pay the contractor or work out a resolution to remove the lien.

Hidden Title Defects

But liens of this sort are the “easy” or more common ones. What about hidden title defects or liens that don’t show up on a quick title search? What if a long lost relative or heir comes out of the woodwork claiming to have ownership rights to the property? Or what if was discovered an incorrect legal description existed on the property, making the contract, deed, and/or other documents void. In cases like this, title insurance would protect you from financial loss and defend you against claims.

Should I Pay for Title Insurance?

You are very wise to purchase a buyer’s title insurance policy to protect your interests. It’s a one-time fee paid at closing that should you need it because of any revealed title issues, will be worth the cost by leaps and bounds. Title insurance rates are typically between $500 and $1000, depending on loan amount. Like car or health insurance, it may not be needed, but if it is, it will be money well-invested. And the policy lasts as long as you and your heirs own the property.

Enhanced Title Insurance Policies

Ask about enhanced coverage policies too. For a few more dollars, aggravations like inaccurate surveys (which are nightmares in potential boundary disputes with your neighbors), building permit violations, some unforeseen violation of the restrictive covenants in the subdivision or city zoning laws are covered and problems that could derail closing for weeks, months, or years are avoided.

A house will be the single largest purchase most families will ever make. If you are going to make this purchase a good decision, you will want to be sure all your finances are in good order. These six steps will make your process of buying your dream home much simpler.

Build up some Savings-You probably know this, but it bears pointing out. When you purchase your house, you are going to be placing yourself in a great deal of debt. Make certain that you have the financial cushion to protect yourself if something goes wrong. Beyond that, be ready to make a sizable down payment, usually around 20 percent of the house' price.

Establish a Budget and Stick to It-Think about the terms of your loan. How will they interact with your other bills? If your house is larger than where you live now, your utilities will be higher. What kind of fees will you have with your home that you aren't paying now? Homeowner's association? Other features of the house? Make sure your budget will support you in good times and bad.

Think About Where You Want to Live-Don't stop when you've found a nice neighborhood. Look into its tax rates. If children are in your future, think about the schools. How will this location affect your travel to work?

Consider the Length of Your Home Loan-In general, you will have the chance to take out your home loan for either 15 or 30 years, though you may be able to work out a deal in between. The most important factor to consider is the difference in payments. A shorter loan will have a much lower interest rate, but will have higher payments than a 30 year loan. Be certain that the terms of the loan are going to work with your budget no matter your finances.

Pay Down Your Debt- Paying down your debt now will raise your credit score, potentially allowing you access to better rates on your loan. In addition, your mortgage will be a very large debt. You can make it easier by making your other commitments smaller.

Start gathering paperwork-Put together your financial records, student loan statements, credit card bills, anything your mortgage lender could conceivably want. Applying for a loan involves a lot of paperwork, and a little diligence in scouting it out now will save you a lot of trouble later.

The excitement of buying a new home can open up your imagination to a whole new world - from interior color schemes to planning your landscaping. Picturing yourself living in your new house is just part of the fun.

But be careful to remain practical before you buy the home. You'll first face the big step of getting pre-approved for a mortgage, and that comes with no guarantees.

Beware that actions you take before the lender agrees to fund your house loan can create obstacles that could potentially kill the deal.

That said, here are some things that you shouldn't do before contract and closing day.

Overuse Credit
Don't use plastic like it's going out of style. You need to keep your available credit as high as possible, and that means keeping low balances on your credit cards. Don't buy a house full of furniture before your loan closes.

You should be careful even with minor expenses. Any new payment is going to have an affect on your monthly debt-to-income ratio, and not necessarily in a good way. Banks will review your past use of credit to determine your interest rate.

Make Mysterious Deposits/Withdrawals
Lenders will keep close watch on your bank statements during the pre-approval process. They'll continue to do so during underwriting.

You'll need to have an explanation for any unusual deposits or withdrawals. The lender will want to know about an unexpected, large deposit to your account; they'll particularly want to be assured that you're not using gifts or unorthodox deposits to pay the bills.

Be Late With Bills
A late payment showing up on your credit report before closing can ruin your deal. Remember: Your payment history comprises about a third of your credit score. Many lenders will require 12 months of consecutive on-time payments to qualify for a home loan.

Co-Signing A Loan
Co-Signing on a loan can be a risky business whenever you make it. But making yourself financially liable for someone else's debt during the loan process is even riskier. Lenders will consider this another financial obligation as they determine your ability to pay a mortgage.

Change Jobs
Obviously, losing your job will create problems during the approval process. But even job-hopping can create hurdles, because lenders love to see stable, reliable income that's going to continue in the future. Even taking a new job in a different field can raise red flags.

Why Ignoring Curb Appeal Will Cost You

Homes with curb appeal sell for higher prices and typically sell faster. This doesn’t necessarily mean replacing main features of your home with expensive materials, it’s about maintaining and beautifying your house. If your home is attractively landscaped and well-maintained, it can add thousands of dollars to the value and decrease sell time. Adding small flourishes and doses of color can be what you need to bump up your curb appeal.

Tips:

Refinish Your Front Door

An old or outdated door, or one that is dull in color, can diminish the appeal of your home. It’s the focal point of a house, but with a simple stain or paint, it can be brightened up and create a welcoming feel for guests and people passing by.

Add Some Lighting

There are many ways to add decorative lighting touches to your home, walkway, or garden. These additions make your home feel as if you care about it, you put work into it, and that increases the curb appeal. Simply changing the fixtures or installing lamps along a pathway can make your home more attractive, and with many styles to choose from, you can stick to a set theme.

Build Window Boxes

Flowers are not only attractive, they are colorful, and they are a natural and easy way to add that touch of color that your home needs. You can build or purchase a window box and install it along your windows, and plant flowers or even herbs within them. They are inexpensive and can give your home a chic or rustic look.

Create a Walkway

Simple stepping stones can add appeal to your home, but a fleshed-out, fully functional walkway gives your home the appeal of safety and attractiveness. People will feel safer walking from the street to the door if the walkway is lined, and if it is artfully designed, the improvement is immediately noticeable.

Paint Your House

The easiest and most efficient way to spruce up your home is by painting it. A solid color with bright accents gives your home a brand new feel to it and makes it stand out from the rest of the houses on the street.

No matter what you choose to do, from major renovations to minimal additions, a few well-placed touches gives your home maximum curb appeal!

Thinking of making your home a little 'greener'? Updating your home to make it more environmentally friendly will also help make it more energy efficient, saving you money in the long run. However, up-front costs for most of those 'green' updates can be very daunting. This list, though, includes some energy efficient updates that you can do quickly and inexpensively that will begin to pay off right away!

1) Light bulbs: Simply changing your bulbs from 'regular' incandescent bulbs to the newer, money saving compact florescent light bulbs can easily save you over $40 per light, over the course of each bulb's lifetime. These bulbs last more than ten times longer than regular bulbs and use less energy, meaning your electric bills are lower, and you buy bulbs less often.

2) Faucet aerators: A faucet aerator can reduce your water usage by as much as 50%; saving you money on your monthly bill and saving the planet! The aerator fits on the head of your faucet and it works by restricting the water flow. However, you won't notice a weaker flow, instead, the flow actually seems stronger.

Aerators are for sinks, but you can also purchase shower heads designed save water. When you save water, you will also reduce your heating costs, because there is less water to heat, meaning less energy is used. Aerators typically cost anywhere from $3 to $10 and will pay for themselves quickly.

3) Ceiling fans: Turn a ceiling fan on when you walk into the room and allow it to circulate the air from the central air (both the cool air and the heat, as they have a switch to reverse direction). Ceiling fans draw the cool air down and distribute it around the room. These can really help lower your energy bills in both the winter and summer months.

4) New dishwasher: While it may seem like a big expense, replacing an old model with an Energy Star dishwasher could save you 10 gallons per wash. For most households, this means you will save nearly 3,700 gallons of water per year--great for your energy bill, your water bill and the environment!

5) New toilets: New toilets use only about a gallon of water per flush, where older models use almost four. This can save you over 7,000 gallons of water per person per year.

Your home is most likely one of your largest and most valuable investments, not to mention that it is where you and your family live. With this much importance, it is crucial that you obtain home owner’s insurance protection. This will protect both your home and your family in the event of an unfortunate event. However, it is equally important that you understand some insurance basics when looking for a policy.

1. Know What Is Covered

Most home owner’s insurance policies will cover the home structure and the contents within the home. In addition, it offers liability protection and will cover living expenses if you are displaced from your home. It is advised to cover your home’s structure 100%, while most policies will cap the value of your personal belongings at 50% the total home value.

2. What Is Not Typically Covered

In many cases, floods and earthquakes are not covered under a standard insurance policy. If you live in an area where these natural disasters are common, you will need to ask for a separate insurance rider to obtain the full protection. You may also need to obtain a separate rider for high-valued items, such as jewelry.

3. What Is the Deductible

Most insurance policies include a deductible, which is the amount you will need to pay out-of-pocket before your insurance will cover the rest. You must look at your personal finances when determining how much of a deductible will best meet your needs. However, keep in mind that the lower the deductible, the higher the premium.

4. Are You Getting the Best Rates

Always shop around for the right policy and the best rates. You should also ask the insurance company directly what you can do to lower your insurance premiums. For example, many companies will give a discount if you have multiple policies with them or if you include various safety features on your home, like an alarm system.

The most important thing is that you take the time to understand your policy. You should always know what is and is not included and keep a detailed list of all your personal belongings. This will protect you if you ever need to file a claim. You should also annually evaluate your policy to determine if it is still meeting your needs, and to ensure you are still getting the best rates. 

Though you think DIY is more economical, it mostly takes double the time and three times the money, as there are a number of mistakes that homeowners make while doing it themselves. We shall familiarize you with some of the top DIY mistakes so you can stay clear of them.

DIY Mistakes made by Homeowners

• Not obtaining permits: By not getting the required permits, you hinder progress. Your work will be on hold till you obtain the permits. Therefore, knowing what permits are required before beginning the job is imperative.

• Having improper tools and supplies: When taking up a DIY project, know what tools are needed. You may think you have all the right tools, but then realize otherwise. So buy quality tools and ensure that they are all at hand. Everyone loves to save on materials, but don’t be cheap. Do the job once, but do it right. By using quality material, you will prevent future damage. 

• Inadequate preparation on the jobsite: At the site, you need to make sure you know where to place the materials while at the same time, have ease of access to all that you need. When you are not prepared, the jobsite can become a disaster zone. Thinking nothing can go wrong, is a mistake. Safety goggles, hard hats are a must when using power tools. Avoid loose clothes as they can get caught in the machinery. Use gloves when handling wood, metal and other sharp objects. 

• Improper preparation for painting: Improper preparation will leave you with spills, drips, runs and more. Clean your walls, fill up the holes and use painter’s tape for objects you don’t want to get paint on. It’s also important to know what paints to use. A flat paint would not work in a kid’s room. Eggshell or satin finishes are good for interior walls. A linseed oil-based stain works well for decks. 

• Inaccuracy: A book or television show is not accurate enough to guide you through the DIY project. Without prior knowledge, you’ll make inaccurate decisions that will cost you. Tag along with someone who is good at this stuff or take workshops before beginning.
• Working beyond your limits: Some feel they can build a house all by themselves in a week. This is working beyond your scope. Thinking you have what all it takes will not help. It will just get you injured. When things seem to fall apart every time you try, take a hint. This doesn’t mean you have failed; it just means you have more to learn before starting.

By avoiding these mistakes, your DIY project can be successful. So be mindful and take care when embarking on a DIY project at home.

Buying your own home has never been more difficult, and that’s only because you have so many options to choose from. Whether you are a first-time buyer or just looking for a new investment, knowing what you want in a home is essential to making the right decision. Look for these amenities before you commit to one particular home can prevent you from making a mistake.

1 - Pay close attention to the condition of kitchen appliances.

Ensures that the appliances have been cared for and are in good shape by opening the refrigerator and oven, ensuring that each appliance works.

2 - Inspect the home’s outdoor areas.

Unfortunately, many of those outdoor areas go unnoticed. Check out the gutters, downspouts and roof before you make the final decision, especially if the home is older.

3 - Get a feel for the neighborhood.

The house itself must be comfortable and welcoming, but the safety and location of the neighborhood is essential too. It is always smart to research local schools, travel time to work and the location of nearby shops.

4 - Know the quality of the floors.

Floors differ from home to home, and there is no doubt that carpet is not the same across the board. Vinyl floors and cheap carpet may require replacement faster than tile or wood.

5 - Check for structural damage.

The ceiling is one of the best places to begin your search for potential structural damage to the home. Water spots are the window for learning about leaks and cracks, as are drywall cracks.

Obviously, there are quite a few things you want to look for in a new home. For the time being, these factors should always be in the forefront of your mind.

Being prepared for natural disasters is of importance, particularly floods if you live in place where they are common. Although you may not want to think about the possibility of a flood occurring, taking a proactive stance and preparing will benefit you. Not only will you have greater peace of mind, you will be able to recover from a flood more quickly when one occurs.

Safety Preparedness

Make sure that you have a minimum three days of food and water per person. Plan for a gallon of water per day/person and non-perishable foods. Store a can opener with the food. You need at least one flashlight, along with batteries as well. A well stocked first aid kit and sanitation items such as toilet paper and feminine care items are essential to preparedness.

If you have pets of small children, make sure that you have their needs adequately covered. Diapers and formula are vital for the health of babies and toddlers. Pets require food, carriers and other essentials such as medications and identification. Do not forget to include water for them.

Keep your preparedness kit in an accessible place and discuss a safety plan with the entire family. Have a set meeting place and a backup in case of separation. Include blankets for everyone, and additional clothing, including socks and waterproof shoes.

Protecting Your Home

While land in a floodplain may be more affordable, it is not good to build on one unless you take proper precautions, such as elevating your home. No matter your location, install check valves in your drainage system. This will keep flood water from using your drains to access your home.

Additionally, make certain your electrical panel, water heater and other essential electrical systems are adequately elevated to reduce the risk of damage. Reinforce your basement with waterproofing and proper sealants to minimize flood damage.

Obtain Flood Insurance

These policies provide compensation for damage to your home and personal goods. Talk to your insurance agent about the level of protection your family will require to ensure you can get back on your feet quickly after a flood.

With proper preparation, you will feel more in control when a disaster strikes. These tips are essential to being prepared for a flood in your area.

They say not to judge a book by its cover, but people definitely judge a house by its curb appeal. When preparing to sell your home improving it's curb appeal can be fairly easy with just a few projects.

Landscaping

If you have brown spots on your lawn, your curb appeal score definitely takes a hit. Make sure you don't have pests or a weed that are causing brown spots. You may have to check with an expert to get to the source of the problem. Overgrown shrubs? Nothing looks worse than shrubs that are obscuring your windows or that look unkempt. You can usually take care of this yourself, but you may need a professional if they are hard to reach.

Exterior Paint

Make sure your home doesn't have areas that are chipped or peeling. These things are inevitable, but definitely affect your curb appeal and can lead to serious problems such as warping, mold and rotting. You can usually fix these issues yourself by sanding, scraping and spot painting, but if your entire house needs a new paint job, best call in the professionals.

Roof and Gutters

Broken or sagging gutters make a home look uncared for. Make sure you check your gutters as well as loose or missing roof shingles. Gutters that aren't cleaned out on a regular basis and repaired when needed can cause permanent problems to your home's foundation, and cause water to seep into your basement or crawl space. You can fix or replace loose or missing shingles, but if your roof has outlived its natural life, you may need to have it inspected and replaced if necessary.

Fences

If your fence is reasonably sound, but needs a facelift, rent a pressure washer and give it a good cleaning. You can replace any boards that are missing, paint or stain it to give it a fresh new look.

Curb appeal makes your home look like you care about it, and if you're trying to sell it, positive curb appeal will welcome prospective buyers to your door. If you’re thinking about selling your home and want to learn more about what steps you can take to help sell your home faster, contact the Heim-Berg Team today!