Buying a home... Contact a REALTOR®
A REALTOR can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.
Get Preapproved for a Loan
Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your RE/MAX agent can also help you. Contact several lenders and determine which one will give you the best deal.
Determine Your Price Range and Area(s) in Which You're Interested
By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live.
Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary
How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?
Begin Testing the Market
Search and find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods.
With Your Agent, Begin Seriously Looking at Homes
Your agent can add to the list of homes you've already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?
Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.
Make an Offer
When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.
At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.
Once Your Offer Is Accepted:
•You'll be asked to submit an earnest money deposit that usually isn't refundable.
•Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
•Have the property professionally inspected.
•If necessary, request repairs.
•Obtain homeowner's insurance.
•Contact utilities (phone, water, power, etc.).
•A few days before closing, stage a walk-through.
•Obtain a cashier's check for the down payment and closing costs.
At Closing:
•Make sure the terms and conditions of the loan statement are correct.
•Carefully read everything before you sign.
ENJOY YOUR NEW HOME!
Why You Should Use a REALTOR® in Your Home Search
Buying a home is probably the largest investment you'll make in your lifetime. Having an experienced, knowledgeable professional representing you in this transaction just makes good sense.
Buying a home is not like buying a car, a mutual fund or other commodity. It can be a life-changing event. REALTORS fully understand the real estate process – and just as important, they understand your local market.
Of course they know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, they'll probably know it. If you're unsure about school districts, they'll be able to direct you to answers. If you're unsure of a builder's reputation, they'll know how you can confirm it.
Your REALTOR also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
- NW-Homefinder
- As a fulltime REALTOR with RE/MAX Northwest, Michael Reagan is a high energy professional focused on delivering quality of service with integrity and trust. He prides himself on communication, accessibility and integrity. With remarkable attention to detail and a drive for results, Michael is able to provide superior service in all aspects of Real Estate sales.
Selling your home...
Selling your home... Hire a REALTOR®
Studies show that homesellers who use a REALTOR® to represent them generally get a better price than those who sell the home themselves. REALTORS® are up-to-date on critical processes and can help keep you out of trouble. They can also help you get your home sold at the best price in the right timeframe.
Equally as important, REALTORS® add objectivity to an inherently emotional transaction: the sale of your home.
It's important to have your home in good showing condition before buyers start going through it. Here are some steps to take:
•Touch up interior and exterior paint as needed.
•Install new carpeting and flooring if it appears worn or dated.
•Make sure the front is clean and spruced up – curb appeal will create a favorable first impression.
•Trim bushes and plants as needed, and make sure the lawn is kept mowed and trimmed. In autumn, rake the leaves; in winter, keep the snow shoveled.
•Keep the interior clean, decluttered and odor-free. Eliminate evidence of pets.
•Minimize personal items such as family photos. You want buyers to see themselves living in the home.
•Consider putting excess furniture and belongings in storage. Now's the time to clean out the garage and basement and sell, give away or throw away items you don't need anymore.
•Consider having a pre-listing inspection performed. Buyers will be hiring professional inspectors; here's your chance to address problems in advance.
•Consider engaging a professional stager to give your home the right emotional appeal.
During the Listing Period
•When potential buyers visit your home, either be absent or make yourselves as inconspicuous as possible.
•Have fresh flowers in the entryway. It makes for a friendly introduction into your home.
•If offers are made that don't match your hoped-for price, don't reject them out of hand. Pay attention to your agent's advice.
•Consider dropping the price if several months go by with few or no offers. But if you and your agent have priced your home properly from the start, this shouldn't be necessary.
•Don't get discouraged. In buyer's markets, homes take longer to sell than during boom times.
You have the best chance of selling your home if you work closely with your agent. Make sure all showings are coordinated through him or her. If you have a brochure box, be sure to keep it filled.
If prospective buyers want to discuss your property or negotiate price or other terms, defer to your REALTOR. He or she is the expert and can best handle all these details without emotion.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Studies show that homesellers who use a REALTOR® to represent them generally get a better price than those who sell the home themselves. REALTORS® are up-to-date on critical processes and can help keep you out of trouble. They can also help you get your home sold at the best price in the right timeframe.
Equally as important, REALTORS® add objectivity to an inherently emotional transaction: the sale of your home.
It's important to have your home in good showing condition before buyers start going through it. Here are some steps to take:
•Touch up interior and exterior paint as needed.
•Install new carpeting and flooring if it appears worn or dated.
•Make sure the front is clean and spruced up – curb appeal will create a favorable first impression.
•Trim bushes and plants as needed, and make sure the lawn is kept mowed and trimmed. In autumn, rake the leaves; in winter, keep the snow shoveled.
•Keep the interior clean, decluttered and odor-free. Eliminate evidence of pets.
•Minimize personal items such as family photos. You want buyers to see themselves living in the home.
•Consider putting excess furniture and belongings in storage. Now's the time to clean out the garage and basement and sell, give away or throw away items you don't need anymore.
•Consider having a pre-listing inspection performed. Buyers will be hiring professional inspectors; here's your chance to address problems in advance.
•Consider engaging a professional stager to give your home the right emotional appeal.
During the Listing Period
•When potential buyers visit your home, either be absent or make yourselves as inconspicuous as possible.
•Have fresh flowers in the entryway. It makes for a friendly introduction into your home.
•If offers are made that don't match your hoped-for price, don't reject them out of hand. Pay attention to your agent's advice.
•Consider dropping the price if several months go by with few or no offers. But if you and your agent have priced your home properly from the start, this shouldn't be necessary.
•Don't get discouraged. In buyer's markets, homes take longer to sell than during boom times.
You have the best chance of selling your home if you work closely with your agent. Make sure all showings are coordinated through him or her. If you have a brochure box, be sure to keep it filled.
If prospective buyers want to discuss your property or negotiate price or other terms, defer to your REALTOR. He or she is the expert and can best handle all these details without emotion.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Avoiding Foreclosure
Are you behind in your mortgage payments, or concerned that you soon might be?
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their loans, meaning they owe more than their home is worth, making it impossible to refinance.
If you've become one of those millions, don't panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you.
To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever contacting their lender.
This would also be a good time to consult with a tax advisor and a CDPE, Certified Distressed Property Expert. Thousands of CDPE's are specifically trained to work with distressed properties, and will be able to help you explore foreclosure options.
Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they'll consider viable alternatives. Some of these alternatives may keep you in your home.
Loan Modification
While only certain homeowners will be able to take advantage of this alternative, it may be your best option because it keeps you in your home and typically results in the least damage to your credit.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.
Mortgage and foreclosure terms defined.
Short Sales
This is the fastest-growing foreclosure alternative. Many lenders will allow a Short Sale, when the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, Short Sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. You may be able to buy another home in as little as two to three years after a Short Sale, compared with a typical seven-year wait after a foreclosure.
Short Sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a Short Sale.
RE/MAX leads the real estate industry in agents who've completed the Certified Distressed Property Expert (CDPE) course or other specialized training. They understand the intricacies of these transactions, and they'll be able to advise and counsel you every step of the way.
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:
1.Don't ignore the problem.
2.Contact your lender as soon as you realize you have a problem.
3.Open and respond to all mail from your lender.
4.Know your mortgage rights.
5.Understand foreclosure prevention options.
6.Contact a HUD-approved housing counselor.
7.Prioritize your spending.
8.Use your assets.
9.Avoid foreclosure prevention companies.
10.Don't lose your house to foreclosure recovery scams.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many times through no fault of their own. A job loss, a serious illness or other circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their loans, meaning they owe more than their home is worth, making it impossible to refinance.
If you've become one of those millions, don't panic. Foreclosure, and its accompanying effect on your credit, is not inevitable. There are many options out there, and your circumstances may make one of those options feasible and desirable for you.
To keep your options alive, you need to communicate with your lender. Many homeowners have lost their homes to foreclosure without ever contacting their lender.
This would also be a good time to consult with a tax advisor and a CDPE, Certified Distressed Property Expert. Thousands of CDPE's are specifically trained to work with distressed properties, and will be able to help you explore foreclosure options.
Many lenders would rather not foreclose. They take a large financial hit on a foreclosure. So in many cases, they'll consider viable alternatives. Some of these alternatives may keep you in your home.
Loan Modification
While only certain homeowners will be able to take advantage of this alternative, it may be your best option because it keeps you in your home and typically results in the least damage to your credit.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.
Mortgage and foreclosure terms defined.
Short Sales
This is the fastest-growing foreclosure alternative. Many lenders will allow a Short Sale, when the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, Short Sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. You may be able to buy another home in as little as two to three years after a Short Sale, compared with a typical seven-year wait after a foreclosure.
Short Sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a Short Sale.
RE/MAX leads the real estate industry in agents who've completed the Certified Distressed Property Expert (CDPE) course or other specialized training. They understand the intricacies of these transactions, and they'll be able to advise and counsel you every step of the way.
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor or legal expert.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures, before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:
1.Don't ignore the problem.
2.Contact your lender as soon as you realize you have a problem.
3.Open and respond to all mail from your lender.
4.Know your mortgage rights.
5.Understand foreclosure prevention options.
6.Contact a HUD-approved housing counselor.
7.Prioritize your spending.
8.Use your assets.
9.Avoid foreclosure prevention companies.
10.Don't lose your house to foreclosure recovery scams.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Buying Distressed Properties...
Many of the homes for sale today - as many as half in some markets - fall under the category of "distressed properties."
These are homes that have either gone through foreclosure or are being marketed as "short sales." In a short sale, the homeowner can't afford to maintain the mortgage, but the lender - rather than foreclosing - agrees to the sale of the property for less than the balance of the loan.
These types of sales have different dynamics than traditional sales - with more paperwork, often a longer transaction process and, in some cases, more frustration. For these reasons, many buyers shy away from foreclosures or short sales.
However, if you understand the potential pitfalls of purchasing a distressed property - and work with an agent who has a thorough knowledge of this market - you can get a great home at a great price.
Thousands of CDPE's Certified Distressed Property Expert's have been specially trained in working with foreclosures or short sales through the Certified Distressed Property Expert class or a similar course. They can guide you through the process and help you locate and purchase just the right home for you.
This is an outstanding time to buy a home - distressed property or not. With historically low interest rates, and a glut of homes on the market in many areas, there are bargains to be found.
Is a distressed property for you? Here are pros and cons of buying one.
Advantages of Buying a Distressed Property
First, you'll be dealing with a highly motivated seller – either a bank in the case of a foreclosure, or in a short sale, sellers who are in financial trouble and very interested in getting out of a mortgage they can no longer afford.
These types of sales take much of the emotion out of the process. You won't be insulting anybody, for instance, if you make an offer that's lower than the asking price. (That's not to say that the low offer will necessarily be accepted, of course.)
Lenders are extremely interested in getting these homes sold and off the liability side of their balance sheets. Many foreclosed properties can be purchased for only a percentage of what they would have commanded five years ago. (This situation is beginning to change, though; bidding wars are breaking out on some foreclosed properties these days, especially those that are moderately priced. Your REALTOR will know what's going on in this area and will be able to help you arrive at a reasonable strategy for making an offer.)
If you're looking at a short sale, you're not likely to get quite as good a deal as on a foreclosure. But there are definite advantages to purchasing one of these homes. For one thing, since the homeowners want to get the home sold quickly, they are likely to keep it well-maintained and in good move-in condition.
Disadvantages of Purchasing a Distressed Property
If you're looking for a "steal," you're probably not going to find it. The market is heating up, with more and more buyers jumping into the market. If you're purchasing a home to live in, you'll often be competing not only against buyers similar to yourself, but against investors. More competition inevitably leads to higher prices.
The transaction process for short sales or foreclosures often takes longer than for traditional transactions. It's sometimes not clear which lending institution actually owns a mortgage loan, and it can take time to get it all sorted out – especially if there's a second mortgage involved, which is often the case.
Some foreclosed properties are also in rough condition. Many have sat idle for a long time with minimal or no maintenance. The departing owners may have sold off fixtures, or damaged the property.
Interested in searching for foreclosures in your area? Access the Foreclosed Properties database here on remax.com
Purchasing Tips
It's critical to have the home professionally inspected before you make an offer or put down earnest money. The inspector will assess the structure's soundness and may uncover problems that would be very costly to repair. Banks usually sell foreclosed homes as-is, meaning they won't make any allowances for repair. And even in a short sale, they likely won't make any such allowances, because they're already losing money on the transaction.
You should have your financing in order before pursuing a foreclosure purchase. Pre-approved buyers have the best chance of getting the property in case of multiple offers. Also, banks generally aren't interested in contingencies (for instance, needing to sell your current home before purchasing another).
You might also consider hiring an appraiser who'll tell you what the house is worth however, your REALTOR can also perform a Comparative Market Analysis.
Distressed Properties and FHA Loans
If you're a first-time homebuyer, a federally insured FHA (Federal Housing Administration) loan might be a good option. The FHA has a program to help you repair a fixer-upper. You can get one loan that combines the mortgage with the repair costs. The amount of the loan is based on the projected value of the property once repairs are made.
FHA loans only require a 3.5 percent down payment – compared to 20 percent with conventional loans – and the down payment can come from an employer, family member or charitable organization. FHA loans also have lower closing costs than conventional mortgages.
Since the federal government insures these loans, you'll get a competitive interest rate and lenders may be willing to give you terms that make it easier to qualify for a loan. If you have less-than-perfect credit, it's easier to obtain an FHA loan than a conventional mortgage.
About HUD Homes
FHA-insured homes that go into foreclosure are acquired by the U.S. Department of Housing and Urban Development (HUD). HUD homes are offered for sale through Internet sites managed by management companies under contract to HUD.
Real estate agents who register with HUD can submit offers on behalf of their clients. HUD pays the agent's commission.
HUD homes are sold as-is, without any warranty. HUD doesn't make repairs nor pay to correct any problems. Again, that makes it critical to have homes inspected before making an offer.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
These are homes that have either gone through foreclosure or are being marketed as "short sales." In a short sale, the homeowner can't afford to maintain the mortgage, but the lender - rather than foreclosing - agrees to the sale of the property for less than the balance of the loan.
These types of sales have different dynamics than traditional sales - with more paperwork, often a longer transaction process and, in some cases, more frustration. For these reasons, many buyers shy away from foreclosures or short sales.
However, if you understand the potential pitfalls of purchasing a distressed property - and work with an agent who has a thorough knowledge of this market - you can get a great home at a great price.
Thousands of CDPE's Certified Distressed Property Expert's have been specially trained in working with foreclosures or short sales through the Certified Distressed Property Expert class or a similar course. They can guide you through the process and help you locate and purchase just the right home for you.
This is an outstanding time to buy a home - distressed property or not. With historically low interest rates, and a glut of homes on the market in many areas, there are bargains to be found.
Is a distressed property for you? Here are pros and cons of buying one.
Advantages of Buying a Distressed Property
First, you'll be dealing with a highly motivated seller – either a bank in the case of a foreclosure, or in a short sale, sellers who are in financial trouble and very interested in getting out of a mortgage they can no longer afford.
These types of sales take much of the emotion out of the process. You won't be insulting anybody, for instance, if you make an offer that's lower than the asking price. (That's not to say that the low offer will necessarily be accepted, of course.)
Lenders are extremely interested in getting these homes sold and off the liability side of their balance sheets. Many foreclosed properties can be purchased for only a percentage of what they would have commanded five years ago. (This situation is beginning to change, though; bidding wars are breaking out on some foreclosed properties these days, especially those that are moderately priced. Your REALTOR will know what's going on in this area and will be able to help you arrive at a reasonable strategy for making an offer.)
If you're looking at a short sale, you're not likely to get quite as good a deal as on a foreclosure. But there are definite advantages to purchasing one of these homes. For one thing, since the homeowners want to get the home sold quickly, they are likely to keep it well-maintained and in good move-in condition.
Disadvantages of Purchasing a Distressed Property
If you're looking for a "steal," you're probably not going to find it. The market is heating up, with more and more buyers jumping into the market. If you're purchasing a home to live in, you'll often be competing not only against buyers similar to yourself, but against investors. More competition inevitably leads to higher prices.
The transaction process for short sales or foreclosures often takes longer than for traditional transactions. It's sometimes not clear which lending institution actually owns a mortgage loan, and it can take time to get it all sorted out – especially if there's a second mortgage involved, which is often the case.
Some foreclosed properties are also in rough condition. Many have sat idle for a long time with minimal or no maintenance. The departing owners may have sold off fixtures, or damaged the property.
Interested in searching for foreclosures in your area? Access the Foreclosed Properties database here on remax.com
Purchasing Tips
It's critical to have the home professionally inspected before you make an offer or put down earnest money. The inspector will assess the structure's soundness and may uncover problems that would be very costly to repair. Banks usually sell foreclosed homes as-is, meaning they won't make any allowances for repair. And even in a short sale, they likely won't make any such allowances, because they're already losing money on the transaction.
You should have your financing in order before pursuing a foreclosure purchase. Pre-approved buyers have the best chance of getting the property in case of multiple offers. Also, banks generally aren't interested in contingencies (for instance, needing to sell your current home before purchasing another).
You might also consider hiring an appraiser who'll tell you what the house is worth however, your REALTOR can also perform a Comparative Market Analysis.
Distressed Properties and FHA Loans
If you're a first-time homebuyer, a federally insured FHA (Federal Housing Administration) loan might be a good option. The FHA has a program to help you repair a fixer-upper. You can get one loan that combines the mortgage with the repair costs. The amount of the loan is based on the projected value of the property once repairs are made.
FHA loans only require a 3.5 percent down payment – compared to 20 percent with conventional loans – and the down payment can come from an employer, family member or charitable organization. FHA loans also have lower closing costs than conventional mortgages.
Since the federal government insures these loans, you'll get a competitive interest rate and lenders may be willing to give you terms that make it easier to qualify for a loan. If you have less-than-perfect credit, it's easier to obtain an FHA loan than a conventional mortgage.
About HUD Homes
FHA-insured homes that go into foreclosure are acquired by the U.S. Department of Housing and Urban Development (HUD). HUD homes are offered for sale through Internet sites managed by management companies under contract to HUD.
Real estate agents who register with HUD can submit offers on behalf of their clients. HUD pays the agent's commission.
HUD homes are sold as-is, without any warranty. HUD doesn't make repairs nor pay to correct any problems. Again, that makes it critical to have homes inspected before making an offer.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Bankruptcy: Your Last Resort
Bankruptcy: Your Last Resort
Bankruptcy should be your last option if you're in financial trouble. However, if your financial situation has been deteriorating for a long time, your credit standing is probably bad enough that filing for bankruptcy won’t do much to make it worse, says ApprovalGUARD President and CEO Jeff Mandel.
Keep this in mind, though: A bankruptcy remains on your credit report for 10 years. Also, creditors know that once you file for bankruptcy, you cannot do so again for seven years.
ApprovalGUARD is a credit service that assigns a personal advisor to each client to help them understand, evaluate and optimize their credit and debt profiles.
Types of Bankruptcy
A Chapter 13 bankruptcy filing, sometimes referred to as reorganization, does not discharge your obligations. It does allow you to work out a plan for paying off debts in amounts and timeframes that you can manage.
"Chapter 13 is designed to provide a solution for people who have suffered a short-term financial challenge due to a job loss or illness," Mandel says. "Although it will have a negative effect on your credit report, some creditors will view this as a demonstration of your willingness to pay your debts rather than to discharge them. In some cases, this may help you obtain new credit within a year or so."
From a credit standpoint, Chapter 7 bankruptcy is the darkest mark you can have. While it absolves you of the debts you owe (except for child support, alimony or unpaid income taxes), it makes obtaining new loans or credit cards extremely unlikely for at least a year or two - and perhaps longer.
One common problem people emerging from bankruptcy face is the catastrophic long-term impact it has on their ability to be approved for new credit at a reasonable cost. Many creditors will not lend to you for one to two years. When you finally begin to qualify again, you will typically be categorized as "extra-high risk," which often leads to lower credit limits and very high interest rates.
"The good news is that nothing credit-related is forever," Mandel says. "The effect of a bankruptcy on your credit score can start to diminish the day your case is closed."
Tips for Recovery From Bankruptcy
•Plan your credit recovery. Take it slow and easy; don’t exceed what you can afford.
•If your credit report contains inaccuracies about debt that was discharged through your bankruptcy, contact the creditor or the credit bureaus to request a correction.
•If your problem was over-spending, create a written budget and stick to it.
•To re-establish a strong credit profile, you need a good history of payments from credit cards and installment debt such as loans for autos, education or a home.
•Consider a “secure” credit card. Such cards are usually backed by your savings account or money you place in escrow to cover 100 percent of your credit line in case you miss your payment.
•If you don't have enough funds to survive a setback, get serious about saving for an emergency fund. In the current economy, you need at least 12 to 16 months.
•If your problem was related to medical bills, seek out an insurance solution.
•The rebuilding process requires you to use credit responsibly. Use only a small portion of your available credit line (30 percent or less) and make a full payment every month.
You may be able to apply for a home loan in as little as two years after the discharge of your bankruptcy. However, you should expect to pay higher fees and interest rates.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Bankruptcy should be your last option if you're in financial trouble. However, if your financial situation has been deteriorating for a long time, your credit standing is probably bad enough that filing for bankruptcy won’t do much to make it worse, says ApprovalGUARD President and CEO Jeff Mandel.
Keep this in mind, though: A bankruptcy remains on your credit report for 10 years. Also, creditors know that once you file for bankruptcy, you cannot do so again for seven years.
ApprovalGUARD is a credit service that assigns a personal advisor to each client to help them understand, evaluate and optimize their credit and debt profiles.
Types of Bankruptcy
A Chapter 13 bankruptcy filing, sometimes referred to as reorganization, does not discharge your obligations. It does allow you to work out a plan for paying off debts in amounts and timeframes that you can manage.
"Chapter 13 is designed to provide a solution for people who have suffered a short-term financial challenge due to a job loss or illness," Mandel says. "Although it will have a negative effect on your credit report, some creditors will view this as a demonstration of your willingness to pay your debts rather than to discharge them. In some cases, this may help you obtain new credit within a year or so."
From a credit standpoint, Chapter 7 bankruptcy is the darkest mark you can have. While it absolves you of the debts you owe (except for child support, alimony or unpaid income taxes), it makes obtaining new loans or credit cards extremely unlikely for at least a year or two - and perhaps longer.
One common problem people emerging from bankruptcy face is the catastrophic long-term impact it has on their ability to be approved for new credit at a reasonable cost. Many creditors will not lend to you for one to two years. When you finally begin to qualify again, you will typically be categorized as "extra-high risk," which often leads to lower credit limits and very high interest rates.
"The good news is that nothing credit-related is forever," Mandel says. "The effect of a bankruptcy on your credit score can start to diminish the day your case is closed."
Tips for Recovery From Bankruptcy
•Plan your credit recovery. Take it slow and easy; don’t exceed what you can afford.
•If your credit report contains inaccuracies about debt that was discharged through your bankruptcy, contact the creditor or the credit bureaus to request a correction.
•If your problem was over-spending, create a written budget and stick to it.
•To re-establish a strong credit profile, you need a good history of payments from credit cards and installment debt such as loans for autos, education or a home.
•Consider a “secure” credit card. Such cards are usually backed by your savings account or money you place in escrow to cover 100 percent of your credit line in case you miss your payment.
•If you don't have enough funds to survive a setback, get serious about saving for an emergency fund. In the current economy, you need at least 12 to 16 months.
•If your problem was related to medical bills, seek out an insurance solution.
•The rebuilding process requires you to use credit responsibly. Use only a small portion of your available credit line (30 percent or less) and make a full payment every month.
You may be able to apply for a home loan in as little as two years after the discharge of your bankruptcy. However, you should expect to pay higher fees and interest rates.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
Clean Up and Unclutter Your Closets
Clean Up and Unclutter Your Closets
Tired of that chaotic mess you call your closet? With a few easy, low-cost fixes and tips, you can make your closets functional, organized spaces - and find what you need, when you need it. Getting your closets in order will give you back valuable time and provide you with some peace of mind.
Here are some organization ideas from Rubbermaid, which sells closet organization systems and accessories through Lowe's and other retailers:
•Declutter - Roll up your sleeves and empty everything out of your closets. The rule of thumb is to keep items you've worn or used in the past year; toss or donate everything else. You'll have several piles: seasonal, keep, repair, donate and toss. Purging your closets will make extra room for the items you wear often, and create storage space you didn't know you had.
•Plan Your Layout - Use every square inch of space in your closets. Consider installing a closet organizing system. Some kits have telescoping rods and expandable shelves to accommodate large and small closets.
•Organize Accessories - Canvas or clear bins, shoeboxes and hanging canvas organizers provide simple, functional storage options for accessories, shoes and seasonal items. Plus, you'll avoid having an avalanche of items fall from higher shelves. Don't forget to use the back of your closet door; an over-the-door organizer can neatly hold shoes, purses and other items while making the most of your space.
•Put it All Together - Once you're ready to restock your closets, put the least-used items on the higher shelves; clothes and items that you use frequently at eye level; and shoes toward the bottom. Hang all your clothing with the hangers facing toward you (more on that later). Save yourself time and anxiety by sorting your wardrobe by season, clothing type and/or color so you can find what you need quickly.
•Hangers Matter - Use padded hangers for delicate fabrics, plastic hangers for shirts and pants and wood hangers for suits. Get rid of wire hangers and remove clothes from dry-cleaning bags (they restrict air flow to your clothes and retain dry-cleaning chemicals in the fabric).
•Maintain the Calm - Don't let your closets revert to their old ways. As you wear and launder clothes, hang them back up with the hooks facing into the closet. After a few months, you'll be able to see what you haven't worn, making it easy to find the clothes, then donate or toss them. Pull together outfits the night before to save time in the morning.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://nw-homefinder.com/
Tired of that chaotic mess you call your closet? With a few easy, low-cost fixes and tips, you can make your closets functional, organized spaces - and find what you need, when you need it. Getting your closets in order will give you back valuable time and provide you with some peace of mind.
Here are some organization ideas from Rubbermaid, which sells closet organization systems and accessories through Lowe's and other retailers:
•Declutter - Roll up your sleeves and empty everything out of your closets. The rule of thumb is to keep items you've worn or used in the past year; toss or donate everything else. You'll have several piles: seasonal, keep, repair, donate and toss. Purging your closets will make extra room for the items you wear often, and create storage space you didn't know you had.
•Plan Your Layout - Use every square inch of space in your closets. Consider installing a closet organizing system. Some kits have telescoping rods and expandable shelves to accommodate large and small closets.
•Organize Accessories - Canvas or clear bins, shoeboxes and hanging canvas organizers provide simple, functional storage options for accessories, shoes and seasonal items. Plus, you'll avoid having an avalanche of items fall from higher shelves. Don't forget to use the back of your closet door; an over-the-door organizer can neatly hold shoes, purses and other items while making the most of your space.
•Put it All Together - Once you're ready to restock your closets, put the least-used items on the higher shelves; clothes and items that you use frequently at eye level; and shoes toward the bottom. Hang all your clothing with the hangers facing toward you (more on that later). Save yourself time and anxiety by sorting your wardrobe by season, clothing type and/or color so you can find what you need quickly.
•Hangers Matter - Use padded hangers for delicate fabrics, plastic hangers for shirts and pants and wood hangers for suits. Get rid of wire hangers and remove clothes from dry-cleaning bags (they restrict air flow to your clothes and retain dry-cleaning chemicals in the fabric).
•Maintain the Calm - Don't let your closets revert to their old ways. As you wear and launder clothes, hang them back up with the hooks facing into the closet. After a few months, you'll be able to see what you haven't worn, making it easy to find the clothes, then donate or toss them. Pull together outfits the night before to save time in the morning.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://nw-homefinder.com/
Five Ways to 'GreenScape' Your Lawn
Five Ways to 'GreenScape' Your Lawn
Is your yard in need of a makeover? You can give it a much-needed update while at the same time using eco-friendly landscaping to reduce your carbon footprint and adding value to your home.
There are simple, cost-saving methods to spruce up your yard that save you time, money and protect the environment. Here are five ways you can "GreenScape" your lawn, according to the U.S. Environmental Protection Agency:
Make Your Soil Healthy
Use compost to feed the soil by digging one to three inches of compost into 6 to 12 inches of topsoil when making new beds or laying new grass. Fertilize existing lawns with about a half-inch of compost every spring or fall. Also, use about three inches of mulch in your landscaping beds around plants to keep weeds away, save water and feed the soil.
Choose the Right Plants
Whenever possible, go with native plants and trees to ensure viability. Pay attention to the layout of your yard, shady spots, soil pH and water sources. Choose plants that are resistant to pests and disease, as well as plant varieties that require little watering. This saves you both time and money. Also, take into account the mature size of a plant or tree and its proximity to your house, power lines and your driveway to avoid potential safety hazards.
Water Wisely
Don't overdo it when you're watering plants, but don't forget that some varieties will need more water than others. Low-water plants, composted soil and mulch and soaker hoses can help reduce water usage and the costs associated with it. Also, aim drainage spouts so rainwater runoff can irrigate lawns and rain gardens. The best time to water is in the early morning.
Control Pests Naturally
Using pesticides can help control problem insects and vegetation, but they're not always the best choice. Prevention is the key to avoiding pest issues. Composting and using mulch, as well as planting pest-resistant varieties of plants, will help limit potential problems. Also, routine weeding will go a long way in cutting down the spread of pests. Allowing some pests may mean a little damage, but it might be better than spraying your yard with a pesticide to control the problem. Consider using traps, barriers or fabric covers as alternatives to pesticides.
Rethink Lawn Care
Mow your yard more regularly to ensure you're cutting less than one-third of the grass height. Leave your grass clippings to make your lawn healthier (this is called "grasscycling"). Using natural organic or slow-release fertilizers reduces run-off, saving you money and limiting water pollution. Be careful not to overseed, and aerate each fall to help roots grow and the soil absorb water better.
Michael Reagan, CDPE
Real Estate Advisor
RE/MAX Northwest Realtors
Office: 425-422-8811
Email: murrelet@comcast.net
Website: http://NW-Homefinder.com/
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