Improve, Organize & Maintain, Cleaning & Decluttering
Whew. The holidays are done. The new year has rung in.
That’s when smart homeowners know it’s time to do these five things that’ll save time, money, and hassles all year long:
#1 Organize Your Seasonal Storage Space

Image: Frank Farm / frankfarm.org

Packing away holiday decor presents a big opportunity. It’s the best time to sort, declutter, and reorganize that space where you store your seasonal stuff.
So before simply stuffing your holiday things back in there somewhere, take inventory, then sort, filter, donate, trash, and re-home as many of your things as possible.
It’ll help keep you more organized all year long, and make it easier to find all your holiday stuff next year.

Spend Oh-So-Wisely on a Kitchen Remodel
6 Materials Savvy Remodelers Never Use in Their Kitchens
How to Shop for a Retro Kitchen — and Not Get Stuck with Junk
Replace or Reface Your Kitchen Cabinets: The Options and Costs
#2 Deep-Clean the Kitchen

Image: Jamie Bonilla

All of that holiday merriment-making is rough on a kitchen. Give it a good deep cleaning now that the glittery dust has settled.
Purge your pantry and frisk your fridge, passing what you can on to local food banks. Scrub the walls and kick-boards, and even pull those appliances right out from the walls for a thorough vacuuming to prevent gunk (and stinks!) from accumulating.
#3 Plan Summertime Projects Now (Especially if You Need a Pro)

Image: Photo by ADZA

Finalize plans for any landscaping, decks, patios, or other outdoor projects that need warm weather. Two good reasons:
1. If you’re DIYing, you’ll be ready to roll at the first hint of nice weather.
2. If you’re hiring a contractor or other professional, getting your bids and contracts in place now will save you from competing with the spring rush (wait too long, and you may not be able to book anyone!).
#4 Create a Schedule to Clean ALL Your Home’s Filters

Image: Michael Sheehan (“HighTechDad”)

It’s not just your HVAC. The filters in your fridge, your vacuum cleaner, your dryer, your air filter, and other household items need to be changed or cleaned at least once a year to be effective, usually more often — especially your dehumidifier. Yucky mold grows easily there.
Check manufacturer instructions for all the filters in your home, and create a master schedule, then add them to your calendar app to remind you.
#5 Save Some Green at White Sales

Image: @hawkes_landin

Linens and towels go on sale in January. It’s a long-standing retail tradition that started back when linens only came in white (hence the name), and still has a solid rep as a money-saver — only in more colors today.
Cut your threadbare bath towels into rags and restock your supply, plus fill in any gaps in your bed linens you may have noticed if you had a house full of holiday guests.

Article written by Gabriela Barkho

Chris Lee and Rusty’s Team at RealtySouth 205-233-5183

Made Possible
by REALTORS®

© Copyright 2018 NATIONAL ASSOCIATION OF REALTORS®

Made Possible
by REALTORS®
Before Buying, Real Estate Pros Insist on Doing These 4 Things

Improve Your Money, Buy & Sell

Before Buying, Real Estate Pros Insist on Doing These 4 Things
What you really need to know about buying — from the people who house hunt for a living.
Take the long view when you’re buying, says Chicago agent Pekarsky. He plans to start a family in a few years, so he set his sights on a single-family with plenty of bedrooms. Image: Jacob Hand for HouseLogic
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One house you’re looking at has the wraparound porch you’ve fantasized about, but it’s on a high-traffic street. The condo you like has a doorman in the lobby (you can order online now!), but it has no dedicated parking. What to choose?
It’s not every day that you buy a home and make decisions about the next three, five, or 10 years of your life. Since you can’t exactly take a home on a test drive, how do you decide? That got us to thinking about real estate pros. When they’ve seen practically everything on the market, how do they choose?
Four pros who’ve seen it all share their advice and their stories of hunting for just the right home.
Compromise for Your Priorities
Veteran real estate agent Nancy Farkas knew exactly what she wanted in her home: ranch style, three bedrooms, high ceilings. But you know what she bought? A two-story Colonial.
Huh?
For Farkas, an associate partner with Coldwell Banker Heritage REALTORS®, in Dayton, Ohio, the home’s location and price trumped style. “I had a dog I had to go home and walk at noon, and the house was close [to work] and the right price,” she says.
Her advice: Make sure your practical and functional priorities don’t get lost in all the home buying hoo-ha (sparkling granite counters, new hardwood floors, a steam shower!). Remember, you can always add the hoo-ha, but you can’t make a home fit all priorities, such as location and price.

Dig Into the Details (Dull, Yes, But Worth It!)
When Grigory Pekarsky, co-owner and managing broker with Vesta Preferred Real Estate in Chicago, was looking for his first home, one of his priorities was to minimize his maintenance costs. He made sure to find out if the house had a newer roof, good siding, and a newer furnace. But he recommends you go even deeper to uncover a home’s not-so-obvious maintenance costs:
Scope out the sewer line — especially if you’re interested in an older home — to make sure there aren’t any tree branches or other debris clogging up the works. Otherwise, you might find some nasty sludge in the basement.
Look at the trees. How mature are they? Roots from older trees can invade the sewer line; untrimmed branches can pummel your gutters during storms.
Know what’s not covered by homeowners insurance. “I learned seepage isn’t covered. Shame on me,” he says.
Ask how old the appliances are. You might need to budget for something new in a few years. Sellers are only required to fix what the inspector finds is broken; they’re not going to upgrade working appliances for you

Seek a House That Matches Your Lifestyle
Having lived the high-rise apartment life as a renter, Pekarsky knew a single-family home was just what he wanted. He was tired of living in a relatively small space with no yard. He wanted a house he could “grow into in the next three to five years.” That meant multiple bedrooms and bathrooms for the family he plans on having. So what he bought — a three-story, single-family with a finished attic bedroom (shown below) on Chicago’s North Side — suits his lifestyle perfectly.

In addition, “you get the biggest value from owning the land,” he says. “In a single-family [home], people aren’t telling you what to do with the investment.”
On the other hand, Matt Difanis wished he’d bought a condo when he bought his first home, a small bungalow ranch in a charming, historic neighborhood in Champaign, Ill. It was first-home love — until it rained.
“If I didn’t clean out the gutters before every rainstorm, the basement would leak,” says the broker-owner of RE/MAX Realty Associates in Champaign. He didn’t realize that taking care of a single-family home wouldn’t be his cup of tea. “I should have opted for a condo without gutters to clean and a lawn to mow,” he says.
Agent Amy Smythe Harris of Urban Provision REALTORS®, in Woodland, Texas, bought a home with a sizable downstairs suite her parents could use now (and she could use years from now). She says her millennial clients aren’t forward-thinking about their lifestyles. Some are childless and say they don’t care about schools, pools, and tennis courts. Then they become parents a few years later and have to move.
“Once they have kids, the first question [they] ask is about school districts, and the second is about where the parks and pools are,” she says.
The pros’ bottom-line advice: Think of your lifestyle preferences and how those might change in the next few years. After all, the typical homeowner lives in a house for a median of 10 years before selling, NATIONAL ASSOCIATION OF REALTORS® data shows.
Look at the House Through the Lens of Resale
All the real estate pros we talked to — no surprise here — emphasized resale. Take appraiser Michelle C. Bradley of Czekalski Real Estate Inc. in Natrona Heights, Pa. When she built her current home — a 2,200-square-foot ranch — she included a full, unfinished basement, even though she has no use for one and rarely ventures into it.
Why would she do that? Because basements are standard in her southwest Pennsylvania market. But Bradley’s not going to finish the basement until she’s ready to sell. That way, she avoids having to clean it and ensures she’ll install the most fashionable bathroom fixtures at sell time.
Her advice: “Don’t buy or build something unique that you can’t resell. If you’re not in an area with log homes, don’t choose a log home. If you’re not in an area with dome homes, don’t choose a dome home.”

Don’t Overspend for the Neighborhood
If you buy a home priced higher than average for the area, it’ll be difficult to resell at a higher price.

Don’t buy a home that’s not in line with the neighborhood’s average price . When you go to resell, you’ll find yourself in an uphill battle to maintain your higher price.
Other advice from the pros: Watch out for unfixable flaws that could affect resale, like:
What’s next to the home, such as vacant land that could be developed, high-traffic businesses, noisy power generation stations, a cell tower, etc.
Lot issues, such as a steep driveway that could double as a ski slope in winter, or a sloped yard that sends water special delivery to your foundation.
Of course, a home isn’t just about resale. It’s just one factor to consider. Remember the first point: Be willing to compromise for your priorities. If the home meets your priorities and you’re going to stay there awhile, then resale might be where you compromise.

Dona DeZube
has been writing about real estate for more than two decades. She lives in a suburban Baltimore Midcentury modest home on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound. Follow Dona on Google+.
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Made Possible
by REALTORS®

Chris Lee and Rusty’s Team at RealtySouth 205-233-5183

© Copyright 2017 NATIONAL ASSOCIATION OF REALTORS®

Accomplishments — even little ones — go a long way toward a sunny outlook. Fortunately, there are plenty of easy, quick home repair chores you can do when you’re mired in the thick of winter.

For max efficiency, make a to-do list ahead of time and shop for all the tools and supplies in one trip. On your work days, put the basics in a caddy and carry it from room to room, checking off completed tasks as you speed through them.

#1 Sagging Towel Rack or Wobbly TP Holder

Unscrew the fixture and look for the culprit. It’s probably a wimpy, push-in type plastic drywall anchor. Pull that out (or just poke it through the wall) and replace it with something more substantial. Toggle bolts are strongest, and threaded types such as E-Z Ancor are easy to install.

#2 Silence Squeaky Door Hinges

Eliminate squeaks by squirting a puff of powdered graphite ($2.50 for a 3-gram tube) alongside the pin where the hinge turns. If the door sticks, plane off a bit of the wood, then touch up the paint so the surgery isn’t noticeable.

#3 Stop Creaky Floor Boards

They’ll shush if you fasten them down better. Anti-squeak repair kits, such as Squeeeeek No More ($23), feature specially designed screws that are easy to conceal. A low-cost alternative: Dust a little talcum powder into the seam where floorboards meet — the talcum acts as a lubricant to quiet boards that rub against each other.

#4 Remove Rust on Shutoff Valves

Check under sinks and behind toilets for the shutoff valves on your water supply lines. These little-used valves may slowly rust in place over time, and might not work when you need them most.

Keep them operating by putting a little machine oil or WD-40 on the handle shafts. Twist the handles back and forth to work the oil into the threads. If they won’t budge, give the oil a couple of hours to penetrate, and try again.

#5 Repair Blistered Paint on Shower Ceilings

This area gets a lot of heat and moisture that stresses paint finishes. Scrape off old paint and recoat, using a high-quality exterior-grade paint. Also, be sure everyone uses the bathroom vent when showering to help get rid of excess moisture.

#6 Fix Loose Handles and Hinges

You can probably fix these with a few quick turns of a screwdriver. But if a screw just spins in place, try making the hole fit the screw better by stuffing in a toothpick coated with glue, or switching to a larger screw.

#7 Replace Batteries on Carbon Monoxide and Smoke Detectors

If you don’t like waking up to the annoying chirp of smoke detector batteries as they wear down, do what many fire departments recommend and simply replace all of them at the same time once a year.

#8 Test GFCI Outlets

You’re supposed to test ground-fault circuit interrupters them once a month, but who does? Now’s a great time. You’ll find them around potentially wet areas — building codes specify GFCI outlets in bathrooms, kitchens, and for outdoor receptacles. Make sure the device trips and resets correctly. If you find a faulty outlet, replace it or get an electrician to do it for $75 to $100.

Another good project is to replace your GFCIs with the latest generation of protected outlets that test themselves, such as Levitron’s SmartlockPro Self-Test GFCI ($28). You won’t have to manually test ever again!

#9 Clean Exhaust Filter for the Stove

By washing it to remove grease, you’ll increase the efficiency of your exhaust vent; plus, if a kitchen stovetop fire breaks out, this will help keep the flames from spreading.

#10 Clean Out Clothes Dryer Vent

Pull the dryer out from the wall, disconnect the vent pipe, and vacuum lint out of the pipe and the place where it connects to the machine. Also, wipe lint off your exterior dryer vent so the flap opens and closes easily. (You’ll need to go outside for that, but it’s quick.) Remember that vents clogged with old dryer lint are a leading cause of house fire#11 Drain Hoses

Inspect your clothes washer, dishwasher, and icemaker. If you see any cracks or drips, replace the hose so you don’t come home to a flood one day.

#12 Check Electrical Cords

Replace any that are brittle, cracked, or have damaged plugs. If you’re using extension cords, see if you can eliminate them — for example, by replacing that too-short lamp cord with one that’s longer. If you don’t feel up to rewiring the lamp yourself, drop it off at a repair shop as you head out to shop for your repair materials. It might not be ready by the end of the day. But, hey, one half-done repair that you can’t check off is no big deal, right?

article written by Jeanne Huber

blog.chriswlee.com

Made Possible
by REALTORS®

 
Why does the oven go kaput on a holiday? No worries. Here’s how to go on the offense now to host your annual holiday party, and you’re past the point of no return. The veggies and meats have been bought. Guests are already braving busy airports and crowded highways to get to your home — and then your oven won’t turn on. Your home-cooked meal has quickly turned into a microwave dinner.
That’s just one of many hosting nightmares that can end your holiday party before it even begins. Thankfully, some of the most damaging mishaps easily can be avoided. We collected five of the most prevalent issues and give you preventative tips to keep your holiday party on track.

Problem: The Oven Doesn’t Heat
For any holiday occasion, the oven is the most important appliance in your house. If it fails to work, the centerpiece of your meal could go from roasted beef, ham, duck, or Tofurky to Peking Duck from the local Chinese takeout joint.
How to avoid:
There are any number of reasons a stove can break, but one common cause of disaster is easy to prevent. Don’t self-clean your oven until AFTER the holidays. You risk blowing a fuse or a thermostat, and tracking down an oven technician around the holidays can be tough.

Problem: The Kitchen Sink Clogs
The day after Thanksgiving is the busiest of the year for plumbers. The prime cause of this clog-a-thon is the mistreatment of drains when cooking holiday feasts. We hope your Thanksgiving went well, and that you avoid clog-a-thons for the rest of the holidays.
How to avoid:
Fats and cooking oils can solidify in your pipes, so never dispose of them in your kitchen sink.
If you have a garbage disposal, make sure it’s running before anything goes in it, and never feed it any stringy, fibrous, or starchy foods like poultry skins or potato peels.
To fix, don’t rely on chemical drain-clearing products that can harm your pipes. Use a snake instead, available for $15 at your local hardware store. Best to keep one on hand.
As the party’s host, you’re supposed to hang guests’ coats — not apologize to them for having to keep them on. A lack of heat can stop a holiday party dead in its tracks.
How to avoid:
The key to avoiding freezing your party to a standstill is regular maintenance of your HVAC. Every 90 days, a new one-inch pleated furnace filter should be installed. If you haven’t done it in a while, now’s a good time to replace it.
Also inspect insulation on refrigerant lines that are leading into your house. Replace them if they’re missing or damaged.

Problem: The Toilet Stops Up
Toilets have a way of clogging up at the worst times, such as during parties and when you have overnight guests. This is especially true if you have a low-flow toilet from the early 1990s.
How to avoid:
Don’t flush anything other than sewage and toilet paper down the toilet. And there’s nothing wrong with putting up a polite note to remind your guests to do the same.

Problem: The Fridge Doesn’t Cool
Without a properly functioning refrigerator, your meat could get contaminated, your dairy-based treats could go sour, and you may not be able to save your yummy leftovers. To avoid discovering a warm fridge after it’s too late, take these simple precautions.
How to avoid:
Get a thermometer for your refrigerator to make sure each shelf stays below 40 degrees and you can be aware of any temperature changes.
Also make sure the condenser coils located on the back of the unit or beneath it are free to breathe. Coils blocked from circulating air by cereal boxes atop the fridge, or dirtied by dust or pet hair can prevent a fridge from keeping cool.
Made Possible
by REALTORS®
Looking to buy or sell a home?

Chris Lee and Rusty’s Team at RealtySouth 205-233-5183

© Copyright 2017 NATIONAL ASSOCIATION OF REALTORS®

Fall and winter start cozy — who hasn’t used the colder temperatures as an excuse to binge-watch Netflix while swaddled in a couch blanket?

But come January, staying indoors can feel less like a treat and more like you’re living in a cave.

Here’s how to make your house lighter, brighter, and cheerier.

#1 Take the Screens Off Your Windows

Image: Natasha Hunt, Simply Inspired Blog

You’ll get 30% more sunlight shining indoors without screens on your windows.

Here’s the best part: Sunlight warms your room and saves you money on your heating bill. It’s solar power — for you!

Be sure to store your screens in your garage or basement where they won’t get damaged. In the spring you’ll want to put them back on so you can keep that 30% of the sun out and run your cooling system less.

#2 Hang Outdoor String Lights Indoors

Image: Eleni Psyllaki

They don’t give off a lot of light, but they’re cheerful as heck.

Drape them around a window or a mantel, or hang a string of LED glimmer lights in a tall potted plant. They’ll add a layer of soft light to your room and remind you of fireflies, flip-flops, and patio parties.

#3 Steal a Little Swedish Chic

Image: @makingoverthemimsion

Scandinavians excel at making a home light and airy because they’ve got places where the sun doesn’t rise at all from November to January.

And you thought you had it bad.

To adapt to weeks and weeks of polar night, Swedes keep interiors pale to reflect and amplify light.

Think white walls, light woods for furniture and floors, and light upholstery. To get the look without getting rid of your dark furniture and floors, put white or light gray slipcovers on your sofa and chairs, and put down light-colored rugs.

The fastest way to bring a little Sweden into your room is to paint it. Try creamy white, pale blue, or dove gray.

#4 Change Your Bulbs

Image: Pop Lights EXI Glass Chandelier

Replace those incandescent bulbs and their yellowy light with LEDs, which produce a brighter, whiter light.

But get your bright right:

• The higher the K rating on the bulb, the cooler and whiter its light.
• For cool, white light, opt for a bulb rated 3,500K to 4,100K.
• For blue-white light that’s closest to natural daylight, use a bulb between 5,000K and 6,500K.

Unless you live in Sweden (see above) you may want to leave the uber-high K bulbs for grow rooms and seasonal affective disorder therapy clinics — because they’re as bright as real sunlight on a hot summer day at noon. You’ll need sunglasses to read.

#5 Hang Mirrors

Image: Madison Wetter, Spaceandhabitat.com

Make the most of that weak winter light by bouncing it around the room with mirrors.

If you don’t want the distraction of seeing your reflection all the time, use a large, convex one — also known as a fish-eye mirror. It will amplify light better than a flat one. Another option: Hang a gallery wall of small mirrors.

#6 Replace Heavy Curtains With Blinds or Roman Shades

Image: Shannon Munro Denny/@bungalivin

Fabric curtains, while quite insulating, block light and make a room feel smaller and more cramped, especially if they’re a dark color or have a large print.

Try Roman shades or a simple valance paired with blinds to let in the maximum amount of natural light.

#7 Trim Branches and Bushes That Block Light

Image: Michele Constantini/PhotoAlto/Getty

If you look out your windows and see the tops of your bushes, grab your pruning shears and get whacking.

You don’t want anything blocking that precious natural light. Same for tree limbs that may be arching down and blocking windows. Cut them off.

#8 Clean Your Windows

Image: Prideaux Design & Alta Constructors, designer/Matt Vacca, photographer

Dirty windows block a lot of natural light.

Admit it, yours are kind of cruddy because who remembers to block out an afternoon to clean the windows?

So get it on your list. Clean the glass inside at least once a month and the glass outside once a year. Your serotonin level will thank you.

#9 Swap Your Solid Front Door for One With Glass Inserts

Image: irina88w/Getty

A solid front door can make your house look and feel as dark as a dungeon.

Get rid of it and install a half-light or full-light door that lets the natural light stream in. For even more natural light, add glass sidelights and a glass transom.

The median cost of a new door is $2,000 for steel and $2,500 for fiberglass, before any extras, but a new door will add curb appeal.

Curb appeal equals higher resale value. And coming home in the evening to the warm glow of light radiating out the glass panels in your front door is an instant mood lifter.

#10 Add a Skylight

Image: Helen Menegakis @sydneyrenovator

It’s the ultimate way to bring more natural light into your house. A window only catches sun for a couple of hours a day, but a skylight lets in the sun all day.

An indoor view of the sky makes deepest January more tolerable. And feeling the warmth of the sun on your skin, light streaming from above, is liberating. A skylight, installed, can cost as much as $3,000. A cheaper alternative is a tubular skylight, which costs around $1,000.

If you’re really good with tools, you can install a tubular skylight yourself. Don’t even think about installing a full-blown skylight yourself.

#11 Add Plants

Image: Igor Josifovic

Putting pots of plants around your room will remind you that spring and green will return.

Match plants to the amount of light you have, because dead and dying plants are depressing. Tropicals that thrive in indirect light are usually the best choice. If you have a sunny window you’ve got more plant options.

Bonus points for adding a plant that blooms in the winter, like a kaffir lily or anthurium

#12 Celebrate National Cream Cheese Brownie Day

Image: @mrsfergie13

February 10 is National Cream Cheese Brownie Day. Really. Since February is when winter is feeling longer than a seminar on insurance underwriting, this is exactly when you need to make cream cheese brownies.

Chocolate won’t make the sun shine longer or your house brighter, but it will make you feel better because … endorphins. Besides, you spent a ton of money on that marble-topped kitchen island and those double ovens, so get baking.

 Article is by Leanne Potts

Chris Lee and Rusty’s Team at RealtySouth                                  205-233-5183

If you’re in the market for a new home or investment property, one of the first questions you’ll probably ask is, “What can we afford?” Many buyers become so caught up in how much they can afford that they don’t realize their total buying power—that is, the total amount of purchasing potential they actually have.

Buying Power Defined

Your buying power is comprised of the total amount of money you have available each month for a mortgage payment. This means the money you have each month after fixed bills and expenses. Any money you’ve saved for a down payment, the proceeds from the sale of your current home, if applicable, and the amount of money you’re qualified to borrow all impact your buying power as well. When you take all of this into account, you may find you are able to purchase a larger home or a home in a more desirable neighborhood, or you might realize you should be looking for homes in a lower price range.

What About Housing Affordability?

Housing affordability is a metric used by real estate experts to assess whether or not the average family earning an average wage could qualify for a mortgage on the average home.¹ Although this figure is essential to creating a comprehensive overview of the real estate market, it’s not a factor you should consider in your home search. What may be considered affordable to you based on your income and other factors may be different than what’s affordable to the average buyer.

Why Buying Power Matters

A common misunderstanding is that a home’s list price determines whether or not you can purchase it. Although it’s important to look at the price tag, it’s essential to consider what your monthly payment will be if you own the home. After all, the purchase price doesn’t include the housing-related expenses, such as annual property taxes, homeowner insurance, associated monthly fees and any maintenance or repairs. Figuring out the payment will prevent you from overestimating or underestimating your buying power. After all, you’ll live with your monthly payment, not the sales price.

Once you have clarity on your buying power, you’ll be able to buy the home you want, instead of settling for a home because you feel it’s the only one you can afford. It will also prevent you from becoming “house poor,” a common term for someone who’s put all their money toward the down payment, leaving them nothing left over for fees outside of their monthly house payment. Both scenarios can negatively impact the lifestyle you want to live. Understanding your buying power can help you get the home you want without sacrificing the lifestyle you desire.

If you haven’t sold your current home yet, a Comparative Market Assessment (CMA) will give you a general idea of how much you may get for your home based on what other homes have sold for in your area. Contact our team for a FREE CMA!

Calculating Your Buying Power

You might be wondering, “How do I know what my buying power is?” Buying power is calculated by adding the money you’ve saved for a down payment and/or the money you made from selling your home (minus fees and mortgage payoff) to all of your sources of income and investments that could be used to make your monthly payment. Make sure to include your monthly pay, commissions or tips, dividends from investments, payments from rental properties or other monthly income you receive as well as the loan amount you’re willing to finance and qualify for.

Most lenders advised buyers to spend no more than 35 to 45 percent of their pretax income on housing, meaning all your income and sources of revenue prior to paying taxes. Make sure you factor in not only your mortgage payment, but also property tax and home insurance to the cost of housing.² However, other financial experts advise spending no more than a very conservative 25 percent of your after-tax income on your housing expenses.²  Whether you plan to spend the average, play it conservative or split the difference is up to you.

Traditionally, mortgage lenders have targeted the ideal housing expense amount to be a ratio of 28 percent or less.³

However, these figures bring up an important point: you don’t have to spend all of your savings and available monthly income on a mortgage payment. It’s important to set money aside for regular home maintenance, unexpected repairs and monthly fees, such as a condominium or homeowners association fee. While the above ratios are commonly accepted, a lender will look at your total financial picture when they decide how much they’re willing to lend. It may be tempting to take out a large loan in order to purchase the home of your dreams, but keep in mind the less money you have to borrow, the stronger your buying power may be.

4 Things That Impact Buying Power

1. Credit score. A great score can help you lock into a lower interest rate.

2. Debt-to-income ratio. The lower the ratio, the better risk you may be to lenders as long as you have an established credit history.

3. Assets, including the documentation of where the money for the purchase is coming from and the mix of your investments.

4. Down payment. The more you’re able to put down, the less you will have to borrow. With a down payment of 20 percent or more, you won’t have to purchase private mortgage insurance (PMI) and you may also be able to negotiate a lower interest rate.

How to Save for a Down Payment

If you’re thinking of buying a home one day, one of the first steps to take is to start saving for a down payment. Here are some tips to make saving easier.

First-time buyers:

1. Set a savings goal. One way to figure out how much to save is to use the average sales price for homes that are similar to what you want and figure out your target down payment percentage. For example, if homes are selling for $200,000 in your area and you want to put 20 percent down, you’ll have to save $40,000. Set a goal to save that amount within a specific time frame; just keep in mind the longer you save, the more the average selling price will change. Although the majority of buyers saved for six months or less, 29 percent of all buyers (and 31 percent of first-time buyers) saved for more than two years for a down payment.⁴

2. Cut back on expenses. Review your monthly expenses and look for ways to save. Twenty-nine percent of buyers cut spending on non-essential items and 22 percent cut spending on entertainment while they were saving for a home.⁴ Think about items you can live without or cut back on temporarily while you’re saving.

3. Look for ways to boost your income. Get a side job or sell items online or at a garage sale to increase your income in a short amount of time. Be sure to save any windfalls you get, including your annual income tax refund or work bonuses.

4. Check out home-buying programs. Your state, county or local government may offer special programs, such as grants, for first-time buyers to use.

5. Ask your family. Thirteen percent of all buyers, and 24 percent of first-time buyers were given money from family or friends to use toward the down payment of their home.⁴

Repeat buyers:

More than 52 percent of repeat buyers used the proceeds from the sale of their primary residence toward the down payment on their next home.⁴ Similarly, 76 percent tapped into their savings accounts.⁴ If you’re thinking of buying another home, here are more ways to save more money, in addition to the tips listed above:

1. Rent a room. If you have an income flat (or mother-in-law unit) attached to your home, rent it out and channel the income into a high-interest savings account.

2. Make your money work for you. If you don’t plan to buy for at least five years, invest it and let the compound interest work for you. Discuss this option with your financial planner or broker to see if this is ideal for you and your goals.

3. Tap into your 401(k). If you have a 401(k) plan, you may be allowed to borrow a portion of it, the lesser of up to $50,000 or half of its value, for your down payment. Remember, it’s a loan so you’ll have to pay it back. If you leave or lose your job before you’ve repaid the loan, you’ll have between 60 to 90 days to repay the balance or face stiff taxes and penalties.

If you want to buy an investment property

Whether you’re buying a second home or a rental property, here are a couple tips to save for a down payment.

1. Tap into your equity. If you’ve paid off or paid down your mortgage on your primary home, you may be able to tap into your equity to purchase another property. Contact your lender to learn more about a HELOC or home equity loan.

2. Get a partner. Find a friend or relative who’s willing to purchase property with you. Typically, you’ll split the costs and profits equally. Just make sure to work with an attorney to create a partnership agreement to fit your situation.

Work Out Your Buying Potential

What’s your buying potential? Fill out this worksheet to get an estimate.

Source: Iowa State University Extension, What is your house-buying power?

Monthly Payment on 30-Year Fixed Rate Mortgage

Didn’t see your desired loan amount? Use the table below to estimate your monthly payment (principal and interest) per $1,000 of your loan. To figure out an estimated loan payment, multiply the factor by the number of thousands in the amount of your mortgage.

For example, if you intend to borrow $400,000, with a loan term of 30 years at 4% interest, multiply 4.77x 400 = $1908 per month.

Source: HSH.com http://www.hsh.com/mopaytable-print.html)

Don’t forget to factor in property taxes and insurance. These are often added to your principal and interest of your mortgage payment—the money used to pay down the balance of your loan and the charge for borrowing the money. Since these numbers vary, contact your county assessor’s office for the current property tax rate and your insurer for a home insurance quote. Once you have these figures, divide each by 12 to estimate how much they’ll add to the above payment amounts.

Do you want a clearer picture of your buying power? Would you like to see what kind of homes you can get with your buying power? Give us a call!

Chris Lee and Rusty’s Team  at RealtySouth                                  205-233-5183

Sources: 1. National Association of REALTORS https://www.nar.realtor/topics/housing-affordability-index/methodology

2. Moneyunder30.com https://www.moneyunder30.com/percentage-income-mortgage-payments
3. Credit.com https://www.credit.com/loans/mortgage-questions/how-to-determine-your-monthly-housing-budget/
4. National Association of REALTORS, 2016 Profile of Home Buyers and Sellers
5. Iowa State University Extension, What is your house-buying power? https://store.extension.iastate.edu/product/pm1460-pdf
6. HSH.com http://www.hsh.com/mopaytable-print.html

www.chriswlee.com

The ultimate timeline ensures the smoothest of transitions.

A real yard. Closets bigger than your average microwave. The freedom to decorate however you darn well please! Making the switch from renting to owning is exhilarating, but many rookie homebuyers find the process trickier to navigate than they expected.

This is why we created our First-Time HomeBuyer Checklist. The 12-month timeline will help you sidestep common mistakes, like paying too much interest or getting stuck with the wrong house. (Yep, it happens!)

12 Months Out

Check your credit score.Get a copy of your credit report at annualcreditreport.com. The three credit bureaus (Equifax, Experian, and TransUnion) are each required to give you a free credit report once a year. A Federal Trade Commission study found one in four Americans identified errors on their credit report, and 5% had errors that could lead to higher rates on loans. Avoid last-minute bombshells by checking your score long before you’re ready to make an offer. And work diligently to correct any mistakes.

Determine how much you can afford. Figure out How Much House Can You Afford?Lenders are happy to lend you as much as your debt load allows. But will that amount make you house poor? Ask yourself, how much house do I really want to afford?Read More In5 Surprising (and Useful!) Ways to Save for a Down Payment how much house you can afford and want to afford. Lenders look for a total debt load of no more than 43% of your gross monthly income (called the debt-to-income ratio). This figure includes your future mortgage and any other debts, such as a car loan, student loan, or revolving credit cards.

There are plenty of calculators on the web to help you determine what you can afford. If you’re pushing the limits, start reducing your debt-to-income ratio now. To get a reality check on what you may actually be spending every month, use this worksheet.

Make a down payment plan. Most conventional mortgages require a 20% down payment. If you can swing it, do it. Your loan costs will be much less, and you’ll get a better interest rate. If, however, you’re not quite able to save the full amount, there are many programs that can help. FHA offers loans with only a 3.5% down payment. But they require mortgage insurance premiums, which will drive up your monthly payments. The U.S. Department of Housing and Urban Development (HUD) provides a list of nonprofit homebuying programs by state. Also check with credit unions; and your employer might even have an assistance program.

As you’re planning your savings strategy, keep in mind that banks like you to “season” your money. That is, they like to see that you’ve had stable funds in your account for 60 to 90 days before applying for a loan. Don’t worry: You can still use a financial gift from a family member or bonus received near the time you buy.

9 Months Out

Prioritize what you most want in your new home. What’s most important in your new home? Proximity to work? A big backyard? An open floor plan? Being on a quiet street? You’ll make a much better decision on what home to buy if you focus on your priorities. If it’s a joint decision, now is the time to work out any differences to avoid frustration and wasted time. Perhaps most important: Know what trade-offs you’re willing to make.

Research neighborhoods and start visiting open houses. But now’s when the fun begins, too. Use property listing sites, such as www.chriswlee.com, to find out about neighborhoods, public transport, and cost of living.

Start visiting open houses to get an idea of what kind of homes are in your price range and what neighborhoods appeal the most. Seeing potential homes will also keep you motivated to continue reducing your debts and saving for your down payment.

Budget for miscellaneous homebuying expenses. Buying a home has some miscellaneous upfront costs. A home inspection, title search, propery survey, and home insurance are examples. Costs vary by locale, but expect to pay at least a few hundred dollars. If you don’t have the cash, start saving now.

Start a home maintenance account. Speaking of saving, start the good habit now of putting a little aside each month to fund maintenance, repairs, and home emergencies. It’s bad enough to have to call a plumber. It’s worse if you’re paying credit card interest on that plumbing bill.

6 Months Out

Collect your loan paperwork. Banks are very particular when it comes to mortgage loans. They demand a lot of paperwork. What they’ll want from you includes:

• W-2 forms — or business tax return forms if you’re self-employed — for the last two to three years
• Personal tax returns for the past two to three years
• Your most recent pay stubs
• Credit card and all loan statements
• Your bank statements
• Addresses for the past five to seven years
• Brokerage account statements for the most recent two to four months
• Most recent retirement account statements, such as 401(k)

If you start collecting these documents now, it’ll lessen the stress when it’s time to get your loan. Bonus: Looking closely at your loan documents each month will also help you stay focused on saving for your down payment and keeping your debt-to-income ratio low.

Research lenders and REALTORS®. Start interviewing REALTORS®, specifically buyers’ agents. A buyer’s agent will work in your best interest to find you the right property, negotiate with the seller’s agent, and shepherd you through the closing process. Your agent also can be instrumental in finding a lender who’s familiar with first-time home buyer programs.

Even better, look for a mortgage broker, who will shop for a competitive loan rate for you among multiple lenders, unlike a bank, which can only offer its own products.

3 Months Out

Get pre-approved for your loan. At this point, if you’ve been following this timeline, your credit score, paperwork, and down payment should be on track. You’ve done your research on lenders and buyers’ agents. Now it’s time to start working with them. First you’ll need to get pre-approved for a mortgage.

Make an appointment with your lender or mortgage broker and bring all your paperwork. He’ll run a credit check on you and tell you how much of a loan you’re approved for. It often makes sense to borrow less than the maximum the lender allows so you can live comfortably. Draft a budget that accounts for mortgage payments, insurance, maintenance, and everything else you have going on in your life.

Start shopping for your new home. One you’re pre-approved, the buyer’s agent you’ve chosen will be able to target homes that meet your priorities in your price range. This way you won’t be wasting time looking at homes you can’t afford.

2 Months Out

Make an offer on a home.It usually takes at least four to six weeks to close on a home. So if you have a firm move-out date, allow enough time to deal with any hiccups that can delay closing.

Get a home inspection. One of the first things you’ll want to do after an offer is accepted is have a home inspector look at the property. If the home inspector finds something that needs repair, that’s a common example of something that can delay closing.

In the Last Month

Triple-check that all your financial documents are in order and review all lending documents before closing. You’re in the home stretch! If you’ve been keeping your documents up to date, and your down payment is in reserve, these final steps are the easiest. Reviewing the mortgage documents is probably the most difficult. Your agent can help guide you through them.

Get insurance for your new home. Don’t forget to secure insurance before closing. You’ll need to bring proof of insurance to closing.

Do a final walk-through. Do a final walk-through of your new home, usually a day or two before closing, to make sure the home is in the shape you and the seller have agreed upon.

Get a cashier’s check or bank wire for cash needed at closing. Make sure you get an exact amount of cash needed for closing. You’ll get that number a few days before closing so you can secure a cashier’s check or arrange to have the money wired. Regular checks aren’t accepted.

That’s it. Congratulations!

Call us today no matter where you are in this process and we can sit down with you and explain the entire home buying process in detail.

Chris Lee and Rusty’s Team with RealtySouth – Tuscaloosa

205-233-5183   clee@realtysouth.com www.chriswlee.com

Article by Jennifer Nelson

https://www.houselogic.com/buy/first-time-home-buyer/first-time-home-buyer-guide/

Our world is full of risk at every turn—from perilous jobs to dangerous driving conditions. That’s why we all love to get back to our homes and not worry about everyday safety hazards. It’s great to feel comfortable and safe at home, but is it as safe as it can be?

Your home should be your haven: the place where you will be protected from harm. It should be a top priority, and yet every year 1200 people or more visit the emergency room during the holiday months due to accidents and unintended injuries sustained from hidden dangers around the home.

With a sharp eye and preventive action you can reduce the chances of lurking safety dangers for everyone who visits your home.

The Top 12 Home Safety Tips

1. GOOD LIGHTING— Adequate lighting reduces the risk of tripping and falling both inside and outside your home. This is especially important in winters when days are shorter. Critical areas that need to be illuminated are the stairs, outdoors, and foyers. Make sure your street number is well lit and visible from the street to aid first responders find your home. The fix: Make sure adequate wattage is utilized and long-life bulbs and motion detectors are in place.

2. ELECTRICAL PROBLEMS?— Electrical issues, like a flickering light or a dead outlet, can be mild annoyances that actually signal serious dangers. If not addressed promptly, a faulty electrical system can result in house fires and shocks. The fix: If you’re experiencing any problems with your electricity, contact a professional right away. In your daily life, make sure electrical cords are not frayed or pierced and extension cords are securely connected. Do not run too many cords to a single outlet. Unplug small appliances, space heaters, and power tools when not in use.

3. DO ROUTINE CLEANING— Not maintaining your appliances leads to a greater chance of accidental home fires. The fix: Do simple tasks regularly like cleaning grease off your stovetop, emptying the lint trap on your dryer, and keeping your chimney clean and clear.

4. SMOKE AND GAS DETECTORS— Every home needs functional warning devices that detect smoke and gases. The fix: When purchasing smoke alarms, make sure they also detect carbon monoxide, a deadly gas that is especially dangerous because it is colorless and odorless. Replace the batteries every six months—or whenever you change your clocks. Create an emergency evacuation plan, build a preparedness kit, and practice regular safety drills with your family to ensure awareness of procedures.

5. SECURE YOUR HOME— Many homes now have the latest technological advancements but still rely on locks and hardware from decades ago to keep you safe from intruders. The fix: Do an audit of all entry points to your home—doors and windows and screens. If any do not have secure screens, locks, and deadbolts, have them installed. For those entry points that do already have door knobs, handles, and locks, make sure that they are in good working condition.

6. WHEN YOU ARE AWAY— We all enjoy long weekends and out-of-town vacations, but unfortunately that leaves your home vulnerable to intruders. The fix: Create the illusion that someone may still be there. Leave a TV or stereo on in the room where a burglar would most likely break in. Have neighbor pick up mail and the daily paper. Turn down phone ringers, keep blinds drawn, and don’t leave unsecured valuables in the home even if you think they are well-hidden. Never hide keys around the home or garden, and don’t leave notes on the door that suggest you are out of town.

7. HOUSEHOLD REPAIRS— Even if you are an expert and know your way around electrical, plumbing, car or other household repairs, proceed with caution. A poor repair could be a recipe for disaster. The fix: Call a professional or ask me for a referral from our trusted sources.

8. VEHICLE CAUTION— Remember that there is danger even before you drive on the street. If you are backing your car up, watch out for children and pets on the sidewalk and road. The fix: Be cautious and proceed slowly when driving vehicles in or out of your driveway. If your driveway does not have good visibility in both directions, walk down and look in both directions before you get in your car.

9. MAKE IT SAFE FOR VISITORS— If you are hosting friends and family, consider what additional safety challenges they may face. The fix: Put yourself in the shoes of a small child and look for low, hard edges, sharp objects, easy-to-open cabinets with chemicals and cleaning agents. Look for falling and tripping hazards that may fell seniors.

10. BRACE YOURSELF— Heavy objects are rarely braced in the home. Appliances, artwork, televisions, and aquariums present real hazards if they are knocked down by a person or a natural disaster. The fix: Strap and brace heavy objects and use security hardware for large artwork.

11. UNCOVER HIDDEN DANGERS— If your home was built before the late seventies, there’s likely lead in the paint under the top coats on your walls and windows, and there might be traces in the varnish used on many hardwood floors. In addition, asbestos often can be found in insulation and “popcorn” ceiling textures. The fix: Hire a licensed contractor to test for possible contaminants and remove them safely, especially prior to a remodel.

12. MOTHER NATURE— Your homeowners insurance will cover you in many instances, but did you know that you may not be insured against natural disasters like earthquakes, floods, tornadoes, and hurricanes? They typically require an additional policy. The fix: Contact your insurance agent to make sure you have adequate replacement coverage as home values escalate and coverage amounts can stay static. Discuss costs for adding disaster policies for the natural disaster most likely to hit your area. Finally, having a disaster and communication plan can minimize the risks.

Safety Dangers to Kids You May Not Think About

Do you have small children who live with you? Even if you don’t, with the holiday season rapidly approaching, your home may welcome friends with young children and older family members. This makes now the ideal time to survey home your home for potential safety problems.

OPEN WATER

Did you know that as little as an inch of water can be a major hazard? A pail of water in the yard, large puddles from a storm, even a washing machine can induce a small child to trip or fall into and become at risk. The fix: Watch for open ice chests and other standing water, and don’t leave toilet seats open.

SMALL BATTERIES

Button-sized lithium batteries power small electronic devices, including remote controls, watches, musical greeting cards, and ornaments. When accidently swallowed, they can get stuck in the esophagus and generate an electrical current that can cause severe chemical burns and tissue damage. The fix: Only let small children play with mechnical devices and toys under supervision, and make sure to put these items away when not in use.

WINDOWS AND STAIRS

Every year, more than 5,000 kids end up in the emergency room after tumbling out of a window. Combat that by installing window guards or window stops so kids can’t fall out. Stairs are another potential hazard for youngsters with less-than-perfect balance. The fix: Baby gates can prevent young kids from venturing up or down. Steps should always have firm footing and be clear of objects as even older people can slip and fall or trip on items left on the stairs.

FAMILY PETS

Cats can scratch a child not used to playing with finicky felines. The family dog may be big and loving but can outweigh a child by five times. Children can be easily knocked down, nipped, or even bitten by a dog not used to the activity of small children. The fix: Monitor play activity and make sure your pet is not getting anxious or annoyed.

CORDS

Babies can be strangled by cords on blinds and shades. The fix: Excessive cords of all types should be removed or secured down. Always keep cribs away from windows with loose cords.

Now’s the Time

With the upcoming holidays at hand, now is the perfect time to survey your home and address potential safety hazards to yourselves, your family, and your friends. It doesn’t take long, most fixes are very inexpensive and simple to do, and your efforts will pay dividends in peace of mind for years to come.

If you would like our advice on how to make your home safer and need a list of trusted sources for home repairs, please contact us today. It’s our business to ensure that your home is safe and secure for your family.

Chris Lee and RustysTeam | 205-233-5183| clee@realtysouth.com | http://www.chriswlee.com