Nearly Half of Home Buyers Surveyed Don’t Understand Essential Information about Mortgages!

As the housing market continues to struggle, home buyers appear ill-prepared to take out a mortgage, answering basic questions about mortgage information wrong nearly half (46 percent) of the time, according to a Zillow® Mortgage Marketplace survey. In fact, 44 percent admitted they are not confident in their knowledge of mortgages or the mortgage process. Zillow® Mortgage Marketplace, with Ipsos, surveyed prospective home buyers, asking them to gauge their own knowledge of mortgages, and asking basic questions about mortgage facts.
More than half (57 percent) of prospective home buyers who were polled do not understand how adjustable rate mortgages (ARMs) work. When asked if interest rates on 5/1 ARMs always reset higher after five years, the majority of home buyers answered yes. In fact, the interest rate will adjust to the prevailing rate after five years, even if rates have declined. Currently, many borrowers whose ARMs have recently reset have lower interest rates than they did when they took out the loan.
Additionally, one-third (34 percent) of the respondents who are prospective home buyers do not understand that lender fees are negotiable and that they vary by lender. They believe lenders are required by law to charge the same fees for credit reports and appraisals, when in fact home buyers can save money by shopping for the lowest fees.
“Most people wouldn’t jump out of a plane if they didn’t know how to use a parachute, yet each year many buyers commit to the largest loan they will take out in their lifetimes without understanding essential information about mortgages,” says Zillow Mortgage Marketplace Director Erin Lantz. “By simply spending a few hours researching how a mortgage works, and by shopping around for the most competitive rates and fees, buyers can save a lot of money.”
Additional Survey Findings
• Nearly half (45 percent) of polled prospective home buyers believe that they should always buy mortgage discount points when obtaining a mortgage. However, because mortgage discount points are simply prepaid interest, the decision should depend on how long you intend to own the home. In some cases, you may not plan to remain in the house for long enough to break even after buying points.
• More than half (55 percent) of prospective home buyers in the study do not understand that mortgage rates vary throughout the day. In reality, mortgage rates can change rapidly, similar to how stock prices can change throughout the day. To get the optimum rate, it is important to monitor rates and shop around.
• More than one-third (37 percent) of prospective home buyers who were polled believe that pre-qualifying for a loan means they have secured financing. In fact, “pre-qualification” is used to describe the earliest step in the process when a lender approximates how much you can afford, but does not run your credit or request any sort of documentation to verify the information you provide. Although there is not a reliable industry standard definition of pre-qualification, it is not until a lender has approved your loan application without conditions that you can rest assured that the lender has committed to financing your loan.
• More than two in five (42 percent) of the polled prospective home buyers do not understand that Federal Housing Administration (FHA) loans are available to ALL buyers. Instead, they believe only first-time buyers qualify. FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20 percent.

RIS Media 5/5/11

4 Things First-Time Home Buyers Need to Know about Home Inspections

4 Things First-Time Home Buyers Need to Know about Home Inspections

RISMEDIA, April 21, 2010— A professional home inspection can not only provide a great education about the home’s systems, but also be a crucial tool in negotiating the most equitable price on the home, according to HouseMaster, one of the first and largest home inspection franchisors in North America.
“Our experience and research shows that approximately 40% of resale homes have at least one defect that can cost a home buyer a minimum of $500 to repair,” said Kathleen Kuhn, President of HouseMaster.“A home inspection by a professional and qualified home inspector is an excellent tool to encourage home sellers to make repairs or make further price adjustments as a result of conditions noted in the inspection report.”
According to the National Association of Realtors (NAR), in 2009, a record 47% of homes sold were purchased by first-time buyers. Tax credit incentives from the federal government of up to $8,000 and historically low mortgage rates continue to attract first-time buyers to the market. A professional home inspection not only educates buyers on the condition of the home but can minimize costly surprises down the road. HouseMaster provides the following tips to ensure that first-time buyers make an educated decision when purchasing a home and get the best price possible.
1. Inspect the Inspector. Only hire a home inspector with an excellent reputation and credentials. Ask how long the company has been in business, ask about specific formal training and ongoing education the inspector has and verify the inspector carries professional liability insurance also known as “Errors & Omissions” (E&O). If the company doesn’t carry this insurance, it could indicate a poor track record or lack of experience.
2. Ask for a sample of a report. The credentials of the inspection company and the quality of the final inspection report will be important. A poorly prepared report without pictures or clear, concise details addressing all the various systems and accessible elements of the home is less likely to be taken seriously by a home seller.
3. Inspect ancillary systems. It’s hard for first-time home buyers to know what they need, so be sure to ask what additional services the company offers. If the home you are considering has a septic system for example, a professional home inspection company may offer septic system inspections or can coordinate that service for you. Generally, the company will offer you a multiple services discount as well as the added convenience of only having to attend one inspection appointment. Other common services offered by home inspectors are termite inspections, mold screening, water testing and radon testing.
4. Go along on the inspection. Ask the inspection company if they encourage buyers to tag along on the inspection. If the inspector discourages you from going along and asking questions, find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. In addition to documenting issues and needed repairs that may exist, a professional home inspector will also show the new buyer how to operate the various systems in the home and provide tips on improving energy efficiency and maintaining the home in general. And being present during the inspection will make the final written report that much more meaningful.

RIS MEDIA 4/21/10

Clean Your Kitchen!

10 Tips for a Cleaner, Safer Kitchen

By Kathleen Purvis  Print Article

The first day of spring has come and gone. To get the cleaning season started right, we looked for the best advice on cleaning the busiest—and maybe dirtiest—room in the house: the kitchen.
For a list of what we should clean, how and when, we asked a bunch of germ experts.
The biggest surprise? People with pets are six times more likely to get salmonella-based infections. The culprit is pet bowls, particularly the water bowl. We often dump it in the sink before we start handling food.
Want to sanitize?
Professional kitchens use a sanitizing solution made with one teaspoon household bleach in four cups of water. It’s sprayed on counters and cutting boards. Experts disagree on the need to use it at home, but if you do, do it correctly: Let sprayed surfaces air-dry—drying with dish towels may recontaminate the surface. Always clean before you sanitize. If chlorine comes in contact with dirt or soil, it can no longer sanitize. Don’t use more than one teaspoon chlorine—stronger isn’t better. And change it about every five days. Chlorine dissipates quickly.
1. Microwave
Fill a bowl with two cups water and a whole lemon, cut into slices. Place it inside and microwave for two minutes, then wipe it out with paper towels. The hot water softens food spills and the lemon cuts grease and keeps the microwave smelling fresh
2. Stove and oven
Spray stove spills with an all-purpose cleaner and let stand 10 minutes for easier cleaning. Oven spills aren’t a food hazard if you regularly heat the oven to 400. Cover a fresh spill with salt until you have time to clean it.
3. Counters
Clean regularly with an all-purpose cleaner. Spray with a weak bleach solution and air-dry if needed.
4. Dishes and dishwashers
If you hand-wash dishes, be sure to air-dry them in a rack as dirty or wet dish towels can recontaminate clean dishes. To reduce soap buildup in a dishwasher, occasionally fill the soap dispenser with baking soda or place a small cup of vinegar on the top shelf, then run the dishwater empty.
5. Sink, drain and faucet handle
Clean regularly with household cleanser, especially after washing or rinsing raw meat. Don’t forget to clean the faucet handle.
6. Refrigerator
Every day, wipe down the handles, including the underside. Every week, throw out anything that’s past its date or shows age. Every three to six months, empty shelves and clean the inside with 1/4 cup baking soda in one quart warm water, then spray with a bleach solution and air-dry. Remove drawers and clean under them. Before you return the food, wipe jars to remove drips. Clean the rubber gasket inside the door to ensure a tight seal. Vacuum the coils in the back and empty and clean the drip pan if necessary.
7. Pet bowls
Find a place besides the kitchen to clean turtle or frog habitats and empty pet bowls, or clean and sanitize the sink before you start washing fresh food.
8. Cutting boards
Most scientists believe wooden cutting boards are safest, as long as they are kept clean, sanitized and dry. Studies have shown wood hampers bacteria growth, while bacteria thrive in scars on plastic. Either way, keep them clean by running them through the dishwasher, or sanitize by spritzing with a weak bleach solution. Always change boards or clean with soapy water after preparing raw food—even vegetables. They grow in dirt, after all.
9. Sponges and dish towels
Change dish towels daily, or more often if they’re wet or dirty. You can microwave a wet sponge for two minutes, but the time varies depending on the power of the microwave (and if the sponge is dry, it could catch fire). Instead, put sponges on the top rack of the dishwasher at the end of every day.
10. Cross-contamination
You know you’re not supposed to put cooked food on the same surface you used for raw food. But it’s not just a problem with cutting boards. You touch all kinds of things while you’re handling raw food: Salt and pepper shakers, cabinet handles, etc. Pay attention to what you touch so you can wipe things down. Tip: It’s not necessary to rinse raw meat and chicken—it just spreads bacteria.

RIS Media 4/14/11  Thanks to our sources: Benjamin Chapman, the extension food-safety specialist for N.C. State; David Sweat, foodborne-disease epidemiologist with the North Carolina Division of Public Health; Douglas Powell, professor of food safety at Kansas State University; and Dean Cliver and Linda Harris with the University of California-Davis.

How to pick an (experienced) Realtor!

Finding a good real estate agent / broker is essential to enjoying a painless real estate transaction. The saying is "20% of the agents do 80% of the business," and it is true. The question is how can you find a good real estate agent? The best agent for you doesn't necessarily work at the largest brokerage, close the most transactions or make the most money. The best agent for you is an experienced professional who will listen to you, conduct herself in an ethical manner and knows your market.

1. REALTORS® and Real Estate Agents

Big Stock Photo

All Realtors® are licensed to sell real estate as an agent or a broker but not all real estate agents are Realtors®. Only Realtors® can display the Realtor® logo. Realtors® belong to the National Association of Realtors and pledge to follow the Code of Ethics, a comprehensive list containing 17 articles and underlying standards of practice, which establish levels of conduct that are higher than ordinary business practices or those required by law. Less than half of all licensees are Realtors®.

2. Referrals

Most real estate agents stay in business because satisfied clients refer them to friends, family, neighbors and coworkers. Ask the people around you who they have used and ask them to describe their experiences with this real estate agent. Successful agents make customer satisfaction their number one priority and put their customers' needs before their own. Try to find an agent who goes above and beyond her responsibilities. She'll be the agent whose praises your friends sing loudest.

3. Search Online for Agent Listings

There are plenty of Web sites that will refer agents to you but that is no assurance of quality. The agents they refer are those who have paid the Web site owners a fee to be listed in their directory. A better bet is to Google the top real estate companies in your area, go to those Web sites and look up profiles of individual agents at offices near you. Agents who are experienced will tell you.  Look for customer testimonials.

4. Attend Open Houses

By going to open houses, you can meet real estate agents in a non-threatening working environment and interact with them. Collect business cards and make notes on them. If you're thinking about selling your home, pay attention to how the agent is showing the home. Is she polite and informative; appear knowledgeable? Does she hand out professional-looking promotional material about the home? Is she trying to sell features of the home? Or is she sitting in a corner reading a book, ignoring you?

5. Track Neighborhood Signs

Pay attention to the listing signs in your neighborhood. Make note of the day they go up and when the sold sign appears. The agent who sells listings the fastest might be better for you than the agent with the largest number of "for sale" signs. Results speak volumes.

6. Using Print Advertising

Real estate agents run real estate ads for two purposes. The first is to sell specific real estate. The second is to promote the real estate agent. Look in your local Sunday newspaper for ads in your targeted neighborhood. Then look up the Web sites of the agents who are advertising. These agents could be specialists in your neighborhood. Call and ask them about their experience.

7. Recommendations from Professionals

Ask other real estate agents for referrals. Agents are happy to refer buyers and sellers to associates, especially if the service you need is not a specialty of the agent who is referring you. Some agents specialize in residential resales while others work exclusively with new home builders. Other agents sell only commercial or investment property. Mortgage brokers are also a resource for agent referrals as many brokers have first-hand knowledge of exceptional agents. Pros tend to refer pros.


Whatever you decide.  Make sure that the agent you choose is experienced!  This is not an easy profession.  Knowledge comes with experience.  How can you trust an agent to assist you with your most important asset, if they haven't had the experience needed to advise you properly?  Check their track record.  It could be the most important decision of your transaction!
_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California}

Selling your home this Spring?? Listen up on how to improve your curb appeal- quick!

Add flowers for instant curb appeal!

The experts all agree that curb appeal is one of the most important aspects to consider when selling your home. When selling, it's the appearance from the street that will very often determine whether potential buyers come in to see the inside, or never get out of their cars.

Flowers are one of the easiest and least expensive ways to make the front of your house look inviting and instantly increase the curb appeal of your home.  Without any real landscaping at all, flowers can transform a rather drab and dreary looking front yard into one that looks colorful and lush.  When selling you should have lots of color to entice prospective BUYERS!!!  Surveys show that RED is the best color of flowers for your front yard to attract buyers.  

You should choose colorful flowers that will be in bloom during the time you're selling your home.   You don't need to have a green thumb, or spend a lot of money to get great results either.  Visit your local home improvement center or nursery and they will be happy to advise you of the best flowers and plants for your purpose.  For under $100.00 you can make a huge difference in the curb appeal to your home.  In a Buyers market, you want to attract every prospective buyer you can-- and it's easy!

One of the nice things about using flowers in this way is that you'll see the results immediately.  And so will buyers visiting your home!

Live a Productive & Stress Free Life!

Architects and structural engineers get paid big bucks to design buildings strong enough to withstand the damaging impact brought on by Mother Nature’s fury. Architects use building codes, blueprints and computer simulations to help them identify and mitigate stress-fatigue factors, which might contribute to the collapse of the building. Ironically, people, like buildings, are also susceptible to stress-fatigue factors and physical collapse brought on by the crippling affects derived from excessive fear, anxiety and worry. Research indicates that a person will react to stressful situations based upon the temperament style that he or she was born into. For example, aggressive people have “anger management,” expressive people have “emotional management,” passive people have “self-esteem management,” and analytical people have “stress management.” In other words, people who tend to be extremely detailed, organized, critical and shy attract stress into their lives like metal shavings are drawn to a magnet.
The major behaviors associated with people under stress include; aloofness, increased sadness, panic attacks, overly sarcastic humor and extreme negative self-talk. Stress occurs when an analytical or “melancholy” type of person is overwhelmed by his or her attempts to balance their physical, financial, personal, spiritual and career interests. The long-term affects of prolonged stress are accumulative and can be physically and mentally damaging over time. Stress manifests in the body as TMJ—teeth grinding, tension headaches, neck/shoulder pain and lower back pain.
Here are several practical ideas that you can use to help you dramatically reduce your stress level and live a much more productive life.
-Get plenty of sleep.
-Eat balanced meals and avoid eating junk food.
-Drink plenty of water and avoid nicotine, excessive caffeine and other stimulants.
-Avoid drinking alcohol in excess.
-Learn to make decisions quickly and let go of the need to over-analyze everything.
-Express your feelings appropriately and don’t bottle up your emotions.
-Avoid trying for perfection and don’t sweat the small stuff.
-Maintain a positive mental attitude by utilizing affirmative “self-talk.”
-Stop worrying so much and look at situations more optimistically.
-Smile and laugh frequently throughout the day, don’t take yourself so seriously.
-Mix leisure with work: take breaks and get away when you can.
-Make a point to spend quality time with your friends and family.
-Become more tolerant. Don’t be overly critical of yourself or others.
-Always be kind and gentle with yourself.
-Listen to upbeat music or watch your favorite movie.
-Exercise for cardiovascular fitness three to four times a week.
-Set written goals, plan your time and prioritize your activates.
-Keep a list of things to do and stay focused on short-term accomplishments.
-Get a massage or take a warm bath.
-Do something nice for someone else.

-Rismedia 2/4/11

Declutter your home- ease stress & simplify your life!

RISMEDIA, March 3, 2011—(MCT)—Inside many of us lurks a pack rat—at least a little one, anyway. Even inside Deniece Schofield. Schofield is a nationally known organizing expert who teaches people how to get their clutter under control through her books, magazine articles, TV appearances and seminars.
Schofield and her husband are planning a move from Cedar Rapids, Iowa, to Las Vegas, and the prospect has brought her to the unpleasant realization that she has years’ worth of stuff to cull through before the moving truck arrives. “I’m going to have to practice what I preach,” she said with a laugh, “and that’s really hard.”
Truth is, the tendency to keep stuff is common, though some people have more difficulty than others letting go. In fact, Schofield said pack rats make up the majority of people she meets at her organizing seminars.
Pack rats are just clutterers, people who keep more stuff than they need and probably lack a good system for managing it. Their clutter isn’t so extensive that it prevents them from living normal lives, but it can add to their stress.
Schofield likes to ease pack rats into decluttering by assuring them they don’t have to get rid of things—not yet, anyway. But they do have to get the things they don’t use out of the mainstream.
Maybe it’s the five dull potato peelers in the gadget drawer, the 27 unmatched coffee mugs or the stack of bed sheets that no longer go with your decor. They seem too useful or potentially valuable to just get rid of them, but they’re standing between you and orderliness.
One approach to dealing with that excess is to box it up, Schofield said. But don’t just stick the box on a shelf someplace, where it will become more clutter. Instead, make a list of the contents, note in that inventory where you’re storing the box and keep the document someplace where you can find it easily, such as in a file or on your computer desk top. “That’ll give you even more comfort,” because you’re maintaining control over your possessions, she explained.
Then, write a note on your calendar to check the box in a year. Most likely you’ll realize you didn’t miss the stuff inside, she said, and you’ll be ready to give it away, sell it at a garage sale or take it to a consignment shop.
Another approach is to let yourself keep only so many of a particular item, be it margarine tubs or pens or used greeting cards. Designate a space to store them or decide on a number limit, she said. Once the storage space is full or the number has been reached, don’t keep any more until your stock is depleted.
That’s harder to do with clothing, so Schofield recommends this trick: Start by hanging all the clothes in your closet backward, so the hanger hook is facing you. When you wear an item and hang it back up, turn the hanger the right way.
Give yourself a year, and then go through your closet. If the hook is backward, you know at a glance you haven’t worn that garment in 12 months. It’s a good candidate for culling.
What about all the stuff stored in the basement, the attic, the garage or the storage space you rent across town because you’ve already filled up your house?
Tackle it one box at a time, Schofield said. If you set out to organize the whole thing, you’ll just get overwhelmed. It helps to have a friend with you to go through the box, someone who can be more objective about its contents, she said.
Once you’ve successfully handled one box, you’ll be motivated to try another. And another.
Schofield is quick to note that those methods aren’t meant for items with genuine sentimental value. Those can be harder to part with, because our feelings about them are tied up with our feelings about the people who made them, owned them once or gave them to us. “You’ve got to remember, that thing is not the person,” she said. If you can’t use it, take a picture of it, and then give the item to someone who needs or wants it more than you do. “You keep the memory; you don’t have to keep the monstrosity,” she said.
Getting rid of things is only half the remedy for pack-rat tendencies, though. You also have to be judicious about bringing in new things to replace them.
Schofield recommends taking a hard look at your shopping habits and making an effort to curb the urge to acquire. When you see something you want, write it down instead of buying it, she suggested. Put a date on the note, and revisit it in six weeks. If you still want or need the item, buy it. Most likely, you won’t.
And don’t buy anything unless you know exactly where you’re going to put it, she said. “Exactly” doesn’t mean on the kitchen counter or in the office somewhere. It means displayed on this table or stored in that drawer. But what if the item is on sale? “Well, it’s going to be on sale again someday,” she said. “You have to be tough on yourself.”