FSBO Jane

What does it mean to have a preapproval on a mortgage loan?

To be preapproved for a mortgage loan means that you, the borrower/potential buyer, has completed a loan application and is approved for a loan. In order to do this, you will provide debt, income and savings documentation to an underwriter (aka lender or bank) that will pre-approve you for a specific amount.

Why do I need a preapproval?

A preapproval is not needed, but it is recommended by many real estate professionals. Say you find the home of your dreams and you want to put in an offer to the owner. Before you do that, you’ll need to figure out how much you can spend on the property. This is done based on the debt/credit/income/savings info you provide, as well as assumptions about interest rates, property taxes and insurance. Also, a seller will be pleased to know that you are serious about the property and already have a payment plan already in the works.

Example: After everything is examined, you are pre-approved for a mortgage loan totaling between $225,000 and $275,000. The home you want is listed at $290,000, and the seller won’t budge on price. Unless you come up with a down payment of $20,000, you will not be able to afford the property.

Winter can sure seem long, with darker days and, in most areas of the country, colder weather. So if you’ve been looking for a way to add some winter cheer to your home, we’ve got an idea: consider plants!

Here are a few types of plants specifically designed for indoor care, making them ideal in winter weather, no matter where you live:

• Indoor Orchids: According to an article in The Woodinville Weekly, orchids “add elegance and color that lasts a long time.” Look for varieties such as the Moth orchid or Lady’s Slippers, and place them somewhere with moderate sunlight, preferably from east/south windows with sheer curtains.
• African Violets: These beautiful potted plants do very well indoors, even in winter. Be sure to water the soil, not the leaves, and only water once the soil has grown dry.
• Indoor Cacti: Designed to thrive in a low-humidity climate, an indoor cactus needs modest water and fertilizer, with abundant sunlight. Water when soil is dry, and place plant near south/west windows if possible.

I’ve always had a difficult time answering questions about the differences between a condo and a townhouse. To me, each of these varies so significantly, it’s often hard to say which is which. However, according to a Chicago Tribune article, the differences are substantial and important. Good thing the article goes on to explain the differences!

Townhouses are often roomier than condos, sometimes with multiple levels and staircases, and townhouses are also more privatized, often with private backyards, garages, driveways and more qualities of a home. Some contain basements, and some include measurements that nearly match a single-family home. Young individuals or beginning families tend to choose townhouses over condos.

Condos are usually one level and more like an apartment. They are most often connected to other condos, with floor levels stacked up like a hotel, and these buildings can include lobbies, doorman services, underground or garage parking, amenities and more. These features vary greatly from one condo to the next. Condos are often found in cities, and older, retired couples tend to choose condos over townhouses.

When it comes down to it, the article suggests that young families with or without children steer toward townhouses, and older couples or individuals steer toward condos. Townhouses are more suburbanized, while condos mostly reside in cities where land costs are high. You can read the entire article here. What do you think? Do you have a preference?

It’s no secret that I am a Buy Owner fan. It is the company that helped me through my FSBO transactions and it is the company I recommend to friends and blog readers.

I keep up with their blog, and during the month of January, that was especially helpful. I e-mailed several posts to my friends who are ready to sell, but I forgot to mention it here. Essentially, the entire month was a 31-day series on why to sell with Buy Owner.

Definitely check it out. Even if you’re not sure you want to sell FSBO, if you’re about to sell your house or you’ve had no luck selling it thus far, there is no harm in reading the 31 reasons why selling with Buy Owner is a smart choice. Because I sold a house using Buy Owner, I can acknowledge that what they say is true. You don’t pay anyone commissions, so it’s more money for you. People can find all the information on your house without leaving the comfort of their house, on the Internet. There are also new features of Buy Owner, like seeing what houses other people are viewing right at this moment, and the extra advertising on social networking websites like Twitter and Facebook.

Reading these 31 reasons to sell with Buy Owner will explain better than I ever could on why selling FSBO is the way to go. It also explains how Buy Owner stands out from other FSBO companies, so that when I continue to mention this company in the future, you will understand why.

When it comes to home remodeling, there are a few things you should consider:

1. Am I going to sell this house?
2. What are homes selling for in my neighborhood?
3. What are the decorating standards in my neighborhood?

Your answers to these questions will determine how you remodel your property. If you are eventually going to sell your home, and you know the price points and decorating standards of other homes in your area, there are a few updates you should completely avoid. Why? You may not necessarily get the most bang for your buck, and you will most likely not see a return on your investment.

YOUR Dream Kitchen: Black granite countertops, Brazilian Cherrywood cabinets, a brick pizza oven, a sub-zero refrigerator, a self-opening trash can. You may love the Food Network and dream of your very own Kitchen Stadium, but the average buyer may not share the same sentiment. Although these updates may increase the value of your home, some potential buyers may not be interesting in paying an extra $50,000 for a luxury kitchen they may not even use that often. If you’re planning on selling your home, go for updates that increase value, but won’t cost you a big loss in the long run. Try to see how other homes in your area compare and keep up with their trends.

Luxury Master Suite: Although walk-in closets and private master bathrooms are desirable these days, other features might not even matter to a given buyer. Be careful when building that dream closet. Built-in shelving is great, but don’t go overboard with lighting, glass embellishments or anything else that isn’t considered standard in a closet. The same goes for the bathroom. A jetted tub is appealing, but a 10-person shower is not. Only install a fireplace if there is an existing gas line. Although custom features increase the value of your property, no one will buy a $800,000 house in a community where majority of the homes sell for $300,000.

Ultimate Play Room: Lots of parents like to create separate spaces for their kids. For example, you might install built-in shelving that meets them at their level, you may add a small bathroom with teeny amenities to match, and you might decorate the walls with custom Sesame Street murals. Even though you may live in a family-friendly neighborhood, some buyers that come to see your home might not even have kids. And what if they don’t want them? When it comes to selling your abode, you must have a neutral mindset. If you want the ultimate play room for your children, go for it. But don’t install anything that would be difficult to change when it comes time to prepare your home for a showing.

Trying to decide whether to buy a home that’s unfurnished or fully furnished? There are certainly benefits to buying a home that’s fully furnished. For one thing, it’s convenient. You can move right in without having to worry about buying a bed to sleep in or a couch to sit on. But then again, you won’t be able to pick furniture according to your own personal taste. Some home sellers are even including things like towels, dishes and linens. I don’t know about you, but I don’t necessarily want someone else’s towels or bedspreads. I’d like to be able to make my own choices when it comes to something as personal as my home. Just something to keep in mind as a home buyer and as a home seller.

For most people, the thought of buying a home with 100% cash, no mortgage, seems like an impossible dream. But the benefits—no monthly payments, full equity, financial freedom to pursue other interests or opportunities—cannot be denied.

Perhaps that’s why some of today’s home buyers are doing just that: buying their homes with 100% cash. Take a look at these clips from around the Web:

• BuyaHousewithCash.com

  “For many people, the cost of renting or paying a mortgage is the biggest chunk of their monthly budget. When that cost is eliminated, you have the financial security that most people only dream about.
  People who own their own homes without a mortgage know that a minor downturn in the local job market or the national economy won’t put their home at risk of foreclosure. True home ownership may also allow you more financial flexibility. “

• Xin Lu at Wise Bread
  

  “You actually own your house - I think psychologically there is a big benefit in knowing that you own your house free and clear. You also free up quite a bit of income because you will have no rent or mortgage.”

• DaveRamsey.com
  

  “The most ideal way to buy a house is the 100%-down plan. Sounds weird, doesn’t it?! But think how much fun that would be! Don’t borrow money. Period. If I can’t get you to postpone the purchase that long, I strongly suggest you save a down payment of 20% or more, choose a 15-year (or less) fixed-rate mortgage, and limit your monthly payment to 25% or less of your monthly take-home pay.
  You want your new home to be a blessing, not a curse. If you buy a house with nothing down and a huge monthly payment, you’re inviting Murphy to move into the spare bedroom. You do not want Murphy as a housemate - believe me! Slow down and realistically think through everything before you jump head-first into making this major purchase. If you don’t, you’ll just be giving Murphy an open invitation to overtake the house.”

• MoneySavingMom.com
  

  “As you will recall, our big goal for this year is to save up enough to pay 100% cash down on our first home. This has been a long-time dream of ours and we’ve been actively working the past year towards this. In actuality, though, we’ve been dreaming and working towards this even before we got married.”

I have a lot of respect and admiration for people who pursue this goal. And I have to say - reading their thoughts only increases my faith in For Sale By Owner home selling. By selling with a reputable FSBO company, you get all the important exposure and advertising, while keeping the large chunk of commission that could have gone to an agent. By buying through a FSBO home, you get the best price possible, since 6% doesn’t have to be added on for commissions. Makes sense, doesn’t it?

CMA stands for a Comparative Market Analysis

Designed to aid home sellers, a CMA can be used to determine the appropriate selling price for a residence.

In it, the following pieces of information will likely be provided, compared with one another to see what a fair market value for the area and the home may be:

* Similar homes that have sold recently.
* How long those homes were on the market.
* Homes that have not sold (i.e., expired listings).
* Homes like yours that are currently for sale (i.e., the competition).

I love finding green furniture or home products that are not only good for the environment but also beautiful. The above table is an example of just that.

Designed by Katrin Arens, this table is made from reclaimed wood beams and adds a rustic charm to any home it’s placed in.

Want to see more? Head over to KatrinArens.it.

Image Credit: Katrin Arens

Sometimes making your home look more attractive can be as simple as a few steps, taken before you head out the door or quickly as you pass through a room.

Take the bathroom. Want to dramatically improve its overall look with little effort? Here’s what to do:

1. Move the Hamper.
It may be convenient to keep your dirty clothes container in the bathroom, but it’s not inviting to visitors. Move it out, and you free up space that makes the bathroom look bigger.

2. Declutter.
Move all your toiletries off the countertops, and get the counter space cleaned off and empty.

3. Empty the Trash.
Empty the trash cans on your quick run-through, and replace the liners with fresh ones.

BONUS IDEAS!
*Paint the walls with neutral colors.
*Replace the towels with fresh ones, also in neutral colors.
*Add a lamp, if possible, to the vanity, creating mood lighting.
*Scrub the floors!
*Scrub the shower/tub or shower!