Taking the Guess Work Out of Bath Remodeling

We love this shopping article from Houzz.  It shows you all the matching pieces necessary to pull together this beautiful bathroom.

Shop Houzz: Create a Timeless Master Bath

Looking for a beautiful kitchen that's bright and nature inspired.  This one is functional and modern with plenty of storage and utility.

Kitchen of the Week: Earthy Textures and Ocean Hues

Five Great Posts for Buyers and Sellers

• 

  How Long is That Remodel Going to Take?

  Some remodeling projects go on for weeks and make a mess of your home life. Here’s what you need to know to survive. Read
• 

  7 Steps to Take Before You Buy a Home

  By doing your homework before you buy, you’ll feel more content about your new home. Read
• 

  What You Need to Know About Buying Energy-Efficient Windows

  Installing energy-efficient windows is an expensive project that can pay off but may not be necessary. Here’s what you need to know. Read
• 

  Understand Disaster Insurance Claims

  The secret to filing a successful disaster insurance claim is getting prepared long before catastrophe actually strikes your home. Read
• 

  Insuring Against Natural Disasters

  Your homeowners insurance covers many of life’s disasters, just not some natural disasters like earthquakes and floods, so consider supplemental policies. Read

Visit houselogic.com for more articles like this.

Copyright 2015 NATIONAL ASSOCIATION OF REALTORS®

Hosting an Open House from 2-4 today!  Perfect starter home for first time buyers.  Great floor plan for family with loft game room and big open living room below.  $159,000
Click for a tour!

Statement by CFPB Director Richard Cordray on Know Before You Owe Mortgage Disclosure Rule

WASHINGTON, D.C. — Today, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray issued the following statement on the Know Before You Owe mortgage disclosure rule:

“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

The public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.

Natural Swimming Pools: 9 Myths Busted

This caught my eye today and it was great reading.  Makes me want to fill in my cement pond and go natural!





Natural Swimming Pools: 9 Myths Busted

When the Bough Breaks

We have a variety of oak trees here on the Gulf Coast and with the beauty, the natural bird habitats, and the shade, come a few hazards, especially after a series of rain and wind storms like we've recently experienced this month.  Several of our own oak trees, a pin oak in particular, have dropped broken branches of varying sizes in the past two weeks.

Althought oaks have some ability to heal themsleves without intervention, older, sometimes more brittle trees may not be able to overcome more than a small crack.  If you do see a small crack, try trimming away some bark to help it heal.  Of course, if the structural integrity of the limb is compromised, it is time to grab your saw.  But, if you are confident that the limb is not a safety hazard should it fall, you can try cutting away about an inch of bark on all sides of the crack with a sharp knife, and peeling the bark off.  If you are uncertain as to the extent of the damage, press down gently on the limb from above to determine whether or not the limb can/should be saved.

With large cracks that cause branches to dip lower than normal or splits that go all the way through the limb, the safest thing to do is to remove the limb. The tree is unlikely to heal large cracks or splits before the weight of the limb causes it to fall, which can damage the tree as well as objects below, such as your house.  If you are comfortable with the DIY approach, use a handsaw or chainsaw, depending on the size of the limb, first cutting off the limb just outside the crack or split. This removes the heaviest weight of the limb, which helps you saw through the limb safely. Pin oak limbs typically have a high number of smaller limbs jutting out from all angles, so you might need to cut off some of the side branches to get a clean cut on the damaged one. Cut the damaged limb again just inside the crack, removing the cracked section. Finally, cut the limb just above the joint with the trunk or another limb to completely remove it.  Need a less hands-on solution?  Call in a tree expert.  Tree surgeons are less expensive than trip to the emergency room!

Finding small branches and larger limbs after rains can indicate a tree in distress.  It's definitely time to call in an expert in this case, to access the overall health of the tree.  Many experts advise skipping the wound repair tars and salves which can further damage the tree systemically or in some cases attract insects.

Your healthy oak trees are a green asset to the value of your home.  With minimal care and occasional professional pruning, they will provide many years of natural beauty for your real property.

How to Fix a Leaky Toilet - The Home Depot

5 Good Reasons to Amend Your Tax Return and How

Article From HouseLogic.com with Permission from National Association of Realtors

By: Reyna Gobel

Published: January 09, 2015

Missed tax deduction? Overlooked tax credit? Get what's coming to you by amending your return.

Your home is a great source of tax savings if you know what qualifies and don't forget to claim deductions and credits. If you missed any of these five, you can go back in time -- roughly two to three years -- by amending your tax return. Your home is a great source of tax savings if you know what qualifies and don't forget to claim deductions and credits. If you missed any of these five, you can go back in time -- roughly two to three years -- by amending your tax return.

1. Home Office Deduction

If your home is your principal place of business, you can take a standard deduction or deduct a percentage of eligible expenses like:

          •Utilities
          •Mortgage interest for the proportion of the house used as your office
          •Home repairs and maintenance

Forms you'll need to file an amendment:

          •1040X (http://www.irs.gov/uac/Form-1040X,-Amended-U.S.-Individual-Income-Tax-Return)
          •Form 8829 (http://www.irs.gov/app/picklist/list/priorFormPublication.html?value=8829&criteria=formNumber) and Schedule A (if you're employed by someone else) for the year you're amending

          •Schedule C (if you're self-employed) for the year you're amending

2. Energy Tax Credit

If you installed energy-efficiency improvements (like HVAC systems, insulation, a roof, windows) in 2012 and 2013 and didn't take a tax credit for those upgrades, you may have missed out on up to $500.

My husband and I didn't claim the energy tax credit for insulation we installed one year because we thought we'd get a better deal if we claimed the credit the next year when we planned to replace windows. But we never got around to replacing the windows. So we amended our return to claim the tax credit for the insulation and got a $500 tax credit.

Forms you need:

          •1040X
          •Form 5695 (http://www.irs.gov/app/picklist/list/priorFormPublication.html?value=5695&criteria=formNumber) for the year you're amending

Note: Unless Congress extends it, the $500 lifetime residential energy tax credit ended in 2014.

 3. Home Improvement Sales Tax Deduction

The State of Texas doesn't tax income, so you can amend Schedule A to deduct state and local sales tax you paid. Say you added new siding for $10,000 and your state charged 6% in sales tax. That's potentially a $600 deduction.

Use the IRS's online sales tax calculator (http://apps.irs.gov/app/stdc/) to figure out the total sales tax you can deduct. Have the receipts to prove you paid the sales taxes.

 Forms you need:

          •1040x
          •Schedule A for the year you're amending

4. Property Tax Deduction

Get a copy of your tax bill payment from the local tax office that collects the bill. Make sure you deduct the property tax expense on your amended return for the year you paid it, which could be different than the year it was due.

 Forms you need:

          •1040x
          •Schedule A for the year you're amending

5. Home Repair Deduction

Red alert: You can't claim deductions for any old home repair. There are only two narrow, possible ways to claim home repairs, and it's always best to check with a tax pro for your particular situation:

If part of your home is used for business and you aren't taking the standard deduction for your home office. You can only claim repairs made to your home office or claim a percentage of the repairs you make to the house as a whole, like repainting or patching a roof leak. If 10% of your home is office, you can deduct 10% of the repainting or patching. If the repair is to the office itself only, then the percentage generally does not apply.

 Forms you need:

          •1040X
          •Form 8829 and Schedule A (if you're employed by someone else) for the year you're amending
          •Schedule C (if you're self-employed) for the year you're amending

For casualty losses. Calculating and deducting casualty losses is complex. Everything from your income level to how you value your property can affect overlooked deductions. Besides placing a value on your personal property, you have to subtract a number of things from that, including insurance reimbursement and a percentage of your adjusted gross income. Read IRS Publication 547 (http://www.irs.gov/uac/Publication-547,-Casualties,-Disasters,-and-Thefts) and consult a tax adviser. Note that you can claim losses from federally declared disasters either in the year they occur or, if it's more favorable, on the preceding year's taxes.

 Forms you need:

          •1040X
          •Form 4684 (http://www.irs.gov/app/picklist/list/priorFormPublication.html?value=4684&criteria=formNumber) for casualty and theft for the year you're amending
          •Schedule A for the year you're amending

This article provides general information about tax laws and consequences, but shouldn't be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

Valentine's Day Fun!

Browsing through a few home magazines today, as I sip herbal tea on the patio.  It's a beautiful February day here in El Lago.  A balmy 66 degrees - warm enough to take a few minutes soaking up the sun before I get back to work.

Nothing makes a house a home, more that DIY holiday projects.  If you're getting ready for some Valentine creativeness this weekend, as I am, here are few things that look easy enough to do tomorrow.  I hope you enjoy - and Happy Valentine's Day!

AO

Easy DIY Ideas for Valentine’s Day

Valentine’s Day is right around the corner, which means we have another reason to decorate our homes! Decorating for Valentine’s Day can be a fun daylong activity that you can do with your kids. Making Valentine’s cards, baking sweets and treats, and even just cutting up paper hearts are just a number of things you and the kids can do together.

Here are a few DIY ideas for Valentine’s day. We’ll be doing these to get ready for this lovely holiday.

Conversation Hearts candies in a votive—a simple and sweet Valentine’s Day accent piece 

One of the quickest and easiest DIY Valentine’s Day decorations involves just three items: Conversation Hearts candies, a small glass candle votive, and a small candle in the color of your choice. Fill the votive half-way with candy, place a candle on top and light it. Voila! Quick and easy.

These would be great on the mantle over your fireplace, on the table runner of your dining table, on the bathroom counter, or even on your coffee table. Feeling a bit fancy? Tie a pink or red bow around the votive. Thank you, Chrissie of Living on Love and Cents for this wonderful idea!

Make and hang paper heart wreaths around your home

Paper crafts are the perfect go-to when decorating for Valentine’s Day, which is why we’re fans of this idea. Making a heart wreath to hang inside your home is fun, quick, and easy (we love easy). All you need is some pink, red and white construction paper or cardstock, or you can use scrapbooking paper.

Use a heart shape hole punch or cut out hearts in various sizes, also cut out a circular base out of cardstock. You’ll be gluing your hearts on this base. Next, glue a layer of hearts on the base and then glue an additional layer of hearts on top of it. Lastly, glue a ribbon on the backside of the wreath and it’s ready to hang. Make more than one Valentine’s Day wreath and hang them outside bedroom doors, hallway walls, or over your fireplace.

Add a bit of flair this Valentine’s Day—or any holiday—with a DIY glitter lantern

via ohhappyday.com

We’ve all heard of a mirror ball, but have you ever heard of a glitter ball, or rather, a glitter lantern? We found this fantastic DIY glitter lantern on ohhappyday.com, a lifestyle and party planning blog based out of San Francisco, California. According to the bloggers, all you need to make your own glitter lantern is: a round paper lantern in the size of your choice, spray glue for glitter (they listed Design Master Glue for Glitter on their blog), glitter, and a drop cloth or newspaper for catching excess glitter. It might be a good idea to do this project in the garage or outside.

Lay open your drop cloth or newspaper on a flat surface. Next, open up the lantern so that it’s in the shape of a globe and spray the glitter glue in patches on the lantern. Start pouring about a handful of glitter on that patch of glue and repeat the process until you’ve reached the optimal level of coverage. Use any excess glitter that fell on your drop cloth or newspaper for any touch ups.

Since this is for Valentine’s Day, a few choice colors for glitter would be red, pink and even white. Hang your glitter lanterns around your patio in clusters or just string a few of them throughout your yard.

Kid Friendly Jar O’ Sprinkles Project

via Nap Time Creations

Finally, this is a fun project to enlist the help of the kiddies. Emily of Nap-Time Creations decided to create a “jar o’ sprinkles” using real edible sprinkles and Mod Podge. Her kids participated by adding personalized paper hearts to make an adorable Valentine’s Day bouquet. Here’s what Emily did…

First, Emily painted a thick layer of Mod Podge all over the inside of a glass jar and poured sprinkles all over the inside, making sure to turn the jar so that the inside had even sprinkle coverage. After the Mod Podge dried up and she was sure that the sprinkles weren’t going anywhere, she had the kids paint and personalize a couple paper hearts that she cut out earlier. After the paper hearts were dried, Emily hot-glued the hearts to some skewers, thus completing her bouquet. The results are pretty awesome.

What Makes a Place Great?

This is an interesting post that I picked up for you from the National Association of Realtors.  Good ideas and lots of things to spur the imagination.  Everyone wants a great place - so here are some insight on .  . .

What Makes a Place Great?

6 House Hunting
Pitfalls to Avoid

1. Missing out on the perfect place. 

Hundreds of new homes hit the market every day, and if you’re not using all of the house hunting tools available, your dream home could slip by unnoticed — or worse, someone else might snatch it up before you even know that it’s for sale. One of the toughest lessons for a first-time (and, yes, even a second-time) buyer is that in this market, passive house hunting simply will not cut it. If you don’t make house hunting a top priority, it’s going to be a painful process. Work with your agent to come up with a smart strategy—and clarify your preferred method of contact—for moving quickly when a listing that you just have to see hits the market. Plus, be sure that you leverage smart free tools like Trulia’s Nearby Home Alerts. You’ll get an instant notification on your mobile device when new listings near your current location come on the market.

2. Choosing the wrong lender. 

Few things are more frustrating than finding the property you’ve been looking for only to find out that the loan you were promised isn’t coming through. Many agents will provide a list of their preferred lenders. Trust your Realtor - they do lots of business and know which lenders deliver what they promise, on time! Preferred lenders earn their preferred status only after they’ve consistently delivered loan closings. Seek out preferred lenders, and don’t be afraid to interview two or three to find your ideal fit.

3. Fixating on price per square foot. 

Let your agent guide you here.  Are you searching by price per square foot? If you are using this as one of your search criteria, you might want to think again. Measurements, often are not guaranteed to be accurate, and mis-measurements can place appropriately priced homes outside of your search parameters. Other criteria can also effect the accuracy of price per square foot.  However, that being said, the home you choose will be appraised using price per square foot, so that's something to keep in mind.

4. Desperation.

When prices are on the rise, buyers get antsy and sellers get greedy. Many buyers have been outbid on numerous properties and have just become tired of looking. As a result, they are placing ridiculously high offers on properties that just aren’t worth it—just to get into a home this minute. Avoid the temptation and build yourself a backup plan. Have your real estate agent recommend short-term or corporate rentals options, so you’ll have a soft place to land while you wait for your dream home to appear on the market.

5. Foregoing Inspections

In a perfect world, sellers would disclose every single issue to the prospective buyers. Since that’s not the case, inspections are a great idea; yet one that many agents see clients skipping too often. Inspections identify red flags and can address the general state of a property. Plus, they can provide leverage when it comes time to negotiate.

6. Buying a “project.” 

The unwritten rule of renovating states that it will take more time and money than expected. So it’s important to know your threshold for renovations before you buy a fixer-upper. Your real estate agent will have referrals to general contractors and specialty tradesmen. It doesn’t hurt to schedule a showing with one of these pros in tow either. It’s better to know what you’re getting into before you find yourself in over your head.  With a bit of savvy, patience and the right agent, many of the pains that come with house hunting can be avoided. And if all goes according to plan, you’ll end up with a place you’ll be proud to call home.

Source: Trulia @ www.trulia.com

Selling Your Home?

So you're thinking about Selling Your Home

Once you start to think about selling, it can seem like information and advice are popping out everywhere.  But, the truth is, most of it may not be the best information or advice for your situation.  For instance, home values on websites such as Zillow, can be tens of thousands of dollars off in either direction.

Before you list Your Home

The best thing you can do first is to have good advice.  Without a trusted source, it's hard to separate truth from fiction.  Just because you find a valuation on the internet, doesn't mean it's the right valuation for your home. The difference between accuracy and generalization can either save or cost you money.  Selling your home is a process, not a single event.  Knowing a few simple facts will speed that process.

3 MYTHS about Selling Your Home

1. It's Only What's Inside that Counts:  The reality is that home buyers are visually reactive, and if the home does not have curb appeal from the outside some buyers will literally refuse to get out of the car!
2. You Don't Need a Home Stager:  Your dog's in a crate and your dirty dishes are in the dishwasher safely out of sight.  Who needs the expense of a stager, right? Wrong! A clean, but well lived-in home, is not a home that is ready to sell.  Staging is a low to moderate expense that is well worth the money.  The stager is not emotionally connected to your home, so her opinions and expertise are developed by experience of what sells, and what inhibits sales.  Most stagers offer varying levels of service, so you can pick the level of staging that works for your family and your budget. 
3. The Paint on the Inside is Not Important:  Applying a fresh coat of tasteful paint is always a great selling point. When you do it well, paint can be one of the best returns on investment of any simple home improvement. Moving is a hassle and home buyers don’t want to spend time painting before they move in.  Your teen may have talked you into painting their bedroom black, but buyers, especially those over 30, aren't going to think it's cool. There's a reason homebuilders' favorite paint color is fondly referred to as Buy Me Beige.

Do You Really Need a Realtor When Selling Your Home? 

Sure, you can find articles written by homeowners who sold without an agent, and think they saved tons of money and had a great experience.  I even read one article that said real estate contracts are "nothing".  To put this in perspective, try googling "FSBO horror stories".  You'll think twice about representing yourself when selling your home after reading the nightmare tales of "for sale by owner".  Be smart and enlist a professional local Realtor. Sellers that choose to go it alone, more often end up wasting time and money. Don’t be unwise, hire a local Realtor for the best advice, information and outcome.

Local Realtors know the market.  Full-time Realtors tend to know more about neighborhoods they specialize in, as well as trends and history, which can add to your bottom line dollars.  Our team is dedicated to helping you get the most money possible from the sale of your home.

Andra Oyler, 281-814-2184

Steve Oyler, 281-814-2203

Keller Williams Clear Lake/NASA

Sources:

realtormag.realtor.com

Hidden Gems

Data provided by ActiveRain.com. ActiveRain is an online community of real estate professionals who exchange best practices, write real estate blogs, and get free education from the industry and their peers.

Help for the Rainy Season

The thought of water inside a home is one of the top concerns for every homeowner.  Besides the cost of cleanup and repairs which can skyrocket out of control, the mere fact that something beyond our control might invade our private space is unsettling.  But, with a bit of preparation and precaution, you can limit the possibility of disaster.

Having personally lived on the Gulf Coast for most of my adult life, I have been up close and personal with the plywood suggestion.  We remained in our home during Ike (I don't recommend this to anyone!). Even though we live about a mile from where Ike made landfall in Clear Lake, we had no damage, thanks in large part to plywood.  Every window in our home has cut-to-fit plywood coverings which take only a few hours to install on preset posts.  (Thankfully, no rising water threatened our home.)

According to Barbara Ballinger, contributor to Realtor Magazine, there's no need yet to acquire an ark, but water certainly has become a bigger menace in many parts of the country.  To prevent damage and avoid large out-of-pocket expenses, homeowners should stay on top of maintenance and repair needs.  The average water damage insurance claim between 2008 and 2012 for a worst-case flood event, totaled more than $38,000, according to National Flood Insurance Program data.  Here are a few steps that all homeowners should consider to protect their property from the ravages of water.

• Roof shingles that are missing, torn, curled or cupped should be replaced now.  Rusty nails can also allow water to seep in.
• Make sure gutters and downspouts are performing properly before the rain starts.  Remove all debris and verify that fits the house property.  According to Wayne Owczarzak, owner of Mr. Handyman in Wheaton, IL, improperly fitted gutters and spouts can actually do more harm than good.
• Fix any broken or cracked glass in windows and doors.
• Warning signs of seepage problems at the foundation include white haze, baseboard warping, and cracking paint.
• If you use a sump pump, be sure to give it a spring cleaning before clouds gather.
• French drains should be cleared of all winter debris as well.
• Though we don't have many boilers in the south, Jeffrey Colle of East Hampton, NY, suggests elevating boilers, furnaces, as well as hot water heaters to save them from flood hazards.  Locally, hot water heaters on the ground floor must be elevated 18" above the floor.
• Don't forget your window wells.  A quick cleaning of accumulated debris can save $$$ by allowing the wells to drain and not fill with water.
• Pre-cut plywood is a staple on the Gulf Coast.  This take advance preparation, but is priceless in its ability to save window and doors in a hurricane.  
• Buy the right flood insurance before you need it. 

2014 Cost vs. Value: 5 Mid-Range Remodeling Projects That Offer the Biggest Returns

Here's a quick look at the short list of remodeling projects what will give you the most bang for your buck. As we rapidly head for warmer weather we'll start to see an increase in listings so you'll want the home you're selling to be in top competitive shape to meet or beat the competition.  Although these projects are in the mid-cost range, take note of the return on the investment for each project. This is a quick read, but a good one!

2014 Cost vs. Value: 5 Mid-Range Remodeling Projects That Offer the Biggest Returns

5 Little Ideas for Big Results

1. First impressions happen when the potential buyer pulls up to your address:

• How do your sidewalks and driveway look? Are they clean, clear and level?
• Are your trees and bushes and shrubs living and trimmed.
• Is your grass green and flowers planted or prepped – if they are blooming yet, is the area clean and clear?
• I have had buyers not even get out of the car because the outside area of the home was a mess!

2. Since the buyers got out of the car, the next visual is the front door.

• Is it clean? A dirty front door is a harbinger for a bad showing.
• Is it freshly painted or wood stained and do the locks work?
• Is the agent fussing and frustrated because the door is gross and dirty and then the lock didn't work and even though the lock seems to work the door won’t push open?
• They buyer is watching and evaluating, before they go in.

3. The first 15 seconds in the house can make it or break it.

• Make sure there are no overpowering smells (good or bad too much fragrance or needless to say pet odor).
• The entrance needs to be completely clutter free, scuff free and welcoming, so that they WANT to go to the next room.
• Keep them feeling good and wanting more.

4.  Kitchens typically sell a house, but that doesn't mean you need brand new cabinets and counter tops.

• Your drawers and doors need to work (buyers open them and yes, they look at what you have in there, so make sure private info is put away and the insides are organized).
• Make sure things don’t fall out or off, and knobs and buttons working on the stove, dishwasher and other appliances.
• No dripping faucets or pipes. Fix any water damage. You'll be filling out a seller's disclosure form with your listing agreement so be prepared to say, "yes there was water damage - here's how we fixed the problem."

5. Make those bathrooms sparkle! 

• Take that Clorox wipe and clean off the toothpaste off of the inside of the sink and make that faucet sparkle before you leave every day.
• Close all toilet seats.  Everyone already knows what the inside of the bowl looks like, but make sure its clean, just in case.

Your home is your private space to live and relax.  This can make for a great deal of clutter and the messy by-products of daily living - dirty dishes, shoes, magazines, children's toys everywhere (if you have a toddler you understand this one), but by doing 1-4 prior to listing, and remember #5 as an everyday chore along with eliminating daily clutter, you'll give your home the edge when it comes to buyer approval.

Happy Selling from The Oyler Team
Keller Williams Realty

5 Mortgage Tips for Home Buyers - From Daily Real Estate News

1. Be prepared to document your finances. Buyers should be prepared for extra review by lenders when underwriting mortgages due to new mortgage regulations that took effect in January, particularly in proving borrowers’ ability to repay their loans. Borrowers should be prepared to show bank statements, tax returns, W-2s, investment accounts, and documentation of any other assets they own. Also, they should be prepared to explain any large deposits to their accounts—even a $500 check from a family member during the holidays. If they can’t prove where the money came from, it has the potential to delay closing.
2. Lock in a rate soon. Mortgage rates are expected to rise in 2014 as the Federal Reserve winds down its $85 billion per month bond-buying stimulus program. A rate lock is usually good for 30, 45, or 60 days, although that time period can vary among lenders.
3. Shop around. Buyers may have the upper hand in 2014. Lenders have lost a large amount of their refinance business this year as rising rates encourage fewer home owners to refinance. That means they are turning their attention to home buyers and may be more willing to compete for their business. Home buyers will want to shop around for more than just the best interest rate on the loan, looking at points and closing costs as well.
4. Pay careful attention to credit. The best mortgage rates often go to borrowers with credit scores of 720 or higher, Bankrate reports. While those with a credit score of 680 can still likely qualify for a loan, they may end up paying higher rates or higher closing costs.
5. Watch your spending. Make sure your buyers aren’t tempted to go outfit their new home with all new furniture—on credit—before closing on the home loan. Lenders will be carefully scrutinizing their debt obligations, such as credit cards and student loans. Borrowers are advised to keep their monthly debt obligations, including mortgage and property taxes, to below 43 percent of their income.

6 Reasons Realtors Require Pre-Qualified Buyers

This is a topic that comes up often.  There are several reasons that a Realtor will require you to do this before taking you out to see many, if any, properties.  Our own policy is to show 1 home, if requested, prior to pre-qualification.  During that appointment we will also provide you with our Buyer Consultation information and give you everything you need to proceed with the lender pre-qualification process. Often times the basis for this requirement is not explained well and tends to leave a bad taste in the buyers mouth. We try to avoid that, but after reading the explanation below you'll understand more fully the reasons behind this mandatory step in the process.

I will do my best to explain a few of the reasons below so you have a full understanding as to why this step is important, and important to complete BEFORE looking for property.

1) We don't know what you can afford.  Many times, buyers don't know either.  Having a direct mortgage lender per-approve you will give you a very clear understanding of what you can afford.  And, it will give you an idea of cash you'll need.  In addition to your down payment at closing, some cash is needed when we write a contract to open escrow, and as we proceed through the inspection period to pay for the option period and various inspections.

2) It's literally heartbreaking to see buyers fall in love with a home they can't afford.  This was not unusual prior to having the pre-qualification requirement in place.  Once you know your approved price range, we'll only be touring homes you can afford.  Thus, pre-qualification enables you to avoid the possibility of being denied a loan after becoming emotionally involved with a property.

3) In our area, sellers will not even entertain an offer unless you can provide a pre-approval letter with the offer.  Keeping in mind that sometimes a matter of hours can make the difference in getting the home of your dreams or losing out when in a multiple offer situation.  Valuable time can be lost if you still need your pre-qualification when you find the perfect home.

4) Many times, things pop up on the credit report that buyers are not even aware of which can have a negative effect on your ability to obtain a mortgage loan. The pre-approval process will check your credit report without lowering your score, identify and address any issues or potential problem areas on the credit report.  This gives you the advantage of knowing everything about your credit health before you make an offer.

5) We will take all the time we need to help you find the right home, and guide you through the process of buying, all the way through closing, but unfortunately, not everyone is a real buyer. Many times we hear "I'm just looking around, I won't be buying until next year, but I'd like to see a few homes,"  or "I'm not really ready but if you find the right home, I'll buy it."  Keep in mind, that next year at this time, or even 6 months from now, the market can be drastically different.  Homes that are on the market today, will not be available next year.  And, without pre-approval, we could be looking for something the ready-or-not buyer cannot afford, even if we do find the right home. 

6) And lastly, we Realtors are paid on commission.  This is how we make a living for our families. Meaning that we only get paid if you successfully close on a home.  We are 100% willing to invest the time for as long as we need to so we can find you exactly what you are looking for at the best price.  The pre-approval is your commitment to us. It says, “I’m serious about buying and not here to waste your time”.

The pre-approval is meant to protect you and your Realtor while providing clarity for all parties. So the next time a Realtor asks you if you are pre-approved, or if you would be willing to get pre-approved before viewing property, you will know why.

6 Ways to Beat the Winter Blahs & a note from our team . . .

Well, here in the Houston area we aren't buried under snow, although our forecast for this week is calling for some type of frozen precipitation! But, I love, love, love this piece anyway! We found #6 especially relevant and appealing, since in our home we leave our festive mantel garland and wreath up through Valentine's Day.  The solt glow of white pearl lights above a flickering fire sets the perfect tone for cozy winter evenings.  And, the scene is set for a romantic Valentine dinner by the fire.  So, we hope you enjoy this fun, and hopefully, useful article.  I'm off to do #5.

A.

6 Ways to Beat the Winter Blahs

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