To comply with the stricter lending guidelines of Fannie Mae and Freddie Mac, and to avoid accusations that the loans sold to Fannie and Freddie are based on inflated appraisals, some real estate professionals have reported lenders lowering home values on appraisals submitted to them. However, effective Sept. 1, Fannie Mae is prohibiting the purchase of loans from lenders who change appraisers’ numbers.
Generally, lenders order a low-cost electronic valuation—based on publicly available statistical data—to review the accuracy of the information submitted by the appraiser. If there is a discrepancy between the electronic valuation and the appraiser’s report, the lender’s underwriters may reduce the appraisal figure.
~ Barry Ripp
From: Calif. Assoc. of Realtors & LA Times
Summer’s warm weather is great, but it has some problems. Bugs, Mosquitos, etc. Just when you want to open a window, something flies in. Spraying a bunch of chemicals around your home may not be a good idea if you have children or pets…and it’s not the “greenest” way to go.
Here are some more natural ways to get rid of pests.
To get rid of ants, try sealing of their entry point with cayenne pepper, lemon juice, garlic or mint leaves. (try one at a time to see which works best for you.)
For mosquitos, try planting marigolds. They give off a fragrance that the bugs don’t like. Lemongrass is another good idea, it contains citronella…which works well. Also lookout for standing water, that’s where they’ll thrive.
Enjoy your summer!
Part One
1- Remove the top set of cabinets doors, then paint them inside & out with a fresh coat of gloss paint.
2- Hang matching pendant lamps on each side of the couch. This will free up space on the end tables.
3- Create cubbies in a bookcase, by cutting vertical dividers to the depth of the unit. Secure them with glue & finishing nails.
4- Paint your front door a vibrant color. Welcome your friends with a new color, like a rich red or another. Use exterior semi-gloss.
5- Change the hardware in your kitchen. Give it a new look with new polished nickel knobs and handles.
The Senate has approved a measure extending the closing deadline from June 30 to the end of September for home buyers trying to tap a federal tax credit. The National Association of Realtors estimates that 180,000 buyers who had a contract in place by April 30 still would be unable to close on their home by the end of this month.
I just got this news this morning. So I will watch for information and pass it on as I get it.
~ Barry Ripp
1. Don’t buy if you don’t plan to stay
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market.
2. Start by shoring up your credit
Since you probably will need to get a mortgage to buy a house; you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
3. Choose carefully between points and rate
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.
4. Hire a home inspector
A home inspector can let you know about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.
5. Get professional help
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an experienced agent, who will have your interests at heart and can help you with strategies during the bidding process.
6. Bonus Tip: Be patient
Buying a home is one of the largest purchases most people will make in their lifetime. The key to avoiding buyer’s remorse is to be completely comfortable before signing on the dotted line.
On last Monday, April 5, banks nationwide began offering the Home Affordable Foreclosure Alternatives Program (HAFA). This new federal program will try to help homeowners avoid foreclosure by offering incentives to lenders that offer a short sale or deed-in-lieu of foreclosure.
Earlier this week, the National Association of Realtors (NAR) reported some lenders and loan services have been slow to implement the program or are unaware of its availability.
NAR has prepared resources to help REALTORS® answer questions about HAFA. Their new short sale Web page includes HAFA forms, breaking news and Fannie Mae and Freddie Mac real estate commission policies.
Call your Realtor today for more info, or contact me and I will be happy to forward you some information.
~ Barry Ripp emailto: barry at barryripp.com
Post Office recycles electronics FREE. Next time you’re in the post office, ask the postal clerk for an envelope to recycle your cell phones, PDAs, MP3 players, ink jet cartridges, digital cameras, and small electronics. The post office provides this free service, and all you have to do is peel the label of this 6-inch by 5.5-inch envelope and drop in your mail box.
Find local recycling centers for many other materials at Earth911.com
A new national survey gauging attitudes toward housing finds that 65% of Americans still prefer owning a home, despite the challenging economic environment and the housing downturn. The Fannie Mae National Housing Survey, conducted between December 2009 and January 2010, polled homeowners and renters to assess their confidence in homeownership as an investment, the current state of their household finances, views on the U.S. housing finance system, and overall confidence in the economy.
The survey revealed that homeowners and renters alike are taking a more cautious approach to homeownership. 23% renters polled said they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages. Respondents cited non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of financial considerations.
60 percent of consumers believe that buying a home today is harder than it was for their parents, and 68 percent think it will be even more difficult for their children. 88 percent also believe that walking away from an underwater mortgage is not acceptable.
~ Barry Ripp www.barryripp.com
Are you ready to paint that old house?
Well, if it’s built before 1978, you may be in for a surprise. That’s because lead-laced paint was used in more than 38 million homes before being banned for residential use in 1978. And starting in April 2010 (next week), the EPA’s Renovation Repair and Painting (RRP) rule takes effect; it requires that anyone paid to do a job that will disturb lead paint must:
- Be EPA certified
- Follow specified safety practices to contain and properly clean the work area, minimizing the generation and distribution of lead-paint dust
- Pass a final cleaning inspection
- Provide homeowners with proper documentation, including the Renovate Right pamphlet and a pre-renovation form
The bad news: Renovation prices may go up, what with more certifications, work requirements and inspections. The good news: Job sites will be safer for contractors and homeowners.
If you’re hiring a remodeler or painting contractor, know what to expect from them. Check these important facts about the dangers of lead, checking for lead in your home and keeping your family safe.
Good luck with your painting project.
This information was obtained from the “Handyman Club of America”
The Federal Reserve announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information … suggests that economic activity continues to strengthen and that the labor market is stabilizing,” the Fed said in a prepared statement.
“Household spending is expanding at a moderate rate, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly,” the Fed said. “However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls.
“While bank lending continues to shrink, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels” the Fed said.
The Fed also said it would end its program of purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help keep home loan rates low. That program will conclude at the end of this month when the Fed’s mortgage bond holdings reach the $1.25-trillion limit it set last year.
