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Examining Your Credit History

by Jon Smith, CRB, CRS, GRI

As indicated earlier, your credit report and history are key to obtaining your home loan. We encourage you to view your credit report yourself, prior to the lender’s viewing of it, by contacting one or all three of the major credit reporting companies: Equifax, Experian, and TransUnion. All you have to do is call and request it. Once you receive it, check the "high credit limit," "total loan," and "past due" columns. It is a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports.

Credit reporting companies:

You can also get a copy of your credit history at the following online locations:

www.freecreditreport.com
www.creditreports.com

What if I find a mistake in my credit history?
You can correct simple mistakes by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders usually understand about legitimate problems.

What about my overall (or FICO) score? What does it mean?
Prior to the late 1990s, credit scoring had little to do with mortgage lending. When reviewing your credit worthiness, an underwriter would make a subjective decision based on past payment history. Then things changed.

Lenders studied the relationship between credit scores and mortgage delinquencies and found a definite relationship. Almost half of those borrowers with FICO scores below 550 became ninety days delinquent at least once during their mortgage. On the other hand, only two out of every 10,000 borrowers with FICO scores above eight hundred became delinquent.

When can I stretch the percentages?
Depending on your area's housing market, lenders sometimes will allow you to stretch their allowable debt ratios. One of the best ways to encourage your lender to do so is to increase your down payment, as indicated in the following chart:

Allowable Monthly Housing Expense

Underwriters sometimes also will stretch the ratios for other "compensating factors," including:

  • Strong cash reserves after close of escrow
  • A new payment that’s only slightly higher than current rent or mortgage payment
  • A history of increasing earning capabilities
  • A history of an ability to save money
  • A large cash down payment

4 Word For Every Home Buyer

by Jon Smith, CRB, CRS, GRI
Home buyers are often confused by an array of unfamiliar terms used when it comes to  the buying and selling process. Even the greenest buyers, however, can save thousands of dollars in financing by mastering just four words:

    * Interest
    * Principal
    * Amortization
    * Equity

Interest, of course, is the cost of borrowing the money to buy the property. During the first years, the monthly payments are largely interest. A smaller portion of the payment is credited to the loan itself, or the principal. The process of reducing the principal is called amortization. As the loan is gradually paid off, the homeowner’s actual ownership – or equity – is increased.

You can learn more about the real estate process by visiting our website www.DesMoinesHomeSource.com

Preparing Your Home for Winter

by Jon Smith, CRB, CRS, GRI

 

TODAY'S FEATURED PROPERTIES



The fall Equinox is a good time of year to start thinking about preparing your home for winter, because as temperatures begin to dip, your home will require maintenance to keep it in tip-top shape through the winter.

Autumn is invariably a prelude to falling winter temperatures, regardless of where you live. It might rain or snow or, as David Letterman says, "Fall is my favorite season in Los Angeles, watching the birds change color and fall from the trees." Did you know there is only one state in the United States where the temperatures have never dipped below zero? Give up? It's Hawaii.

Here are ten tips to help you prepare your home for winter:

1) Furnace Inspection

  • Call an HVAC professional to inspect your furnace and clean ducts.
  • Stock up on furnace filters and change them monthly.
  • Consider switching out your thermostat for a programmable thermostat.
  • If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
  • Remove all flammable material from the area surrounding your furnace.

2) Get the Fireplace Ready

  • Cap or screen the top of the chimney to keep out rodents and birds.
  • If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote.
  • Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
  • Inspect the fireplace damper for proper opening and closing.
  • Check the mortar between bricks and tuckpoint, if necessary.

3) Check the Exterior, Doors and Windows

  • Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
  • Use weatherstripping around doors to prevent cold air from entering the home and caulk windows.
  • Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
  • If your home has a basement, consider protecting its window wells by covering them with plastic shields.
  • Switch out summer screens with glass replacements from storage. If you have storm windows, install them.

4) Inspect Roof, Gutters & Downspouts

  • If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
  • Check flashing to ensure water cannot enter the home.
  • Replace worn roof shingles or tiles.
  • Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
  • Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.

5) Service Weather-Specific Equipment

  • Drain gas from lawnmowers.
  • Service or tune-up snow blowers.
  • Replace worn rakes and snow shovels.
  • Clean, dry and store summer gardening equipment.
  • Sharpen ice choppers and buy bags of ice-melt / sand.

6) Check Foundations

  • Rake away all debris and edible vegetation from the foundation.
  • Seal up entry points to keep small animals from crawling under the house.
  • Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
  • Inspect sill plates for dry rot or pest infestation.
  • Secure crawlspace entrances.

7) Install Smoke and Carbon Monoxide Detectors

  • Some cities require a smoke detector in every room.
  • Buy extra smoke detector batteries and change them when daylight savings ends.
  • Install a carbon monoxide detector near your furnace and / or water heater.
  • Test smoke and carbon monoxide detectors to make sure they work.
  • Buy a fire extinguisher or replace an extinguisher older than 10 years.

8) Prevent Plumbing Freezes

  • Locate your water main in the event you need to shut it off in an emergency.
  • Drain all garden hoses.
  • Insulate exposed plumbing pipes.
  • Drain air conditioner pipes and, if your AC has a water shut-off valve, turn it off.
  • If you go on vacation, leave the heat on, set to at least 55 degrees.

9) Prepare Landscaping & Outdoor Surfaces

  • Trim trees if branches hang too close to the house or electrical wires.
  • Ask a gardener when your trees should be pruned to prevent winter injury.
  • Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
  • Seal driveways, brick patios and wood decks.
  • Don't automatically remove dead vegetation from gardens as some provide attractive scenery in an otherwise dreary, snow-drenched yard.
  • Move sensitive potted plants indoors or to a sheltered area.

10) Prepare an Emergency Kit

  • Buy indoor candles and matches / lighter for use during a power shortage.
  • Find the phone numbers for your utility companies and tape them near your phone or inside the phone book.
  • Buy a battery back-up to protect your computer and sensitive electronic equipment.
  • Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.
  • Prepare an evacuation plan in the event of an emergency.

Home Buyer Seminar - Des Moines, Iowa

by Jon Smith, CRB, CRS, GRI
 Join Jon Smith of Iowa Realty, Des Moines leading Real Estate Agent, as he reveals the secret to buying a home with a $0 down and walking away $7,500...

In this exclusive home buyer seminar, you will learn valuable information to get you into a home of your own. 

 This seminar will be full of information regarding Mortgage Loans, Home Inspections and most importantly - how you can buy a home in today's real estate market.

Your TWO BONUSES will be waiting for you when you arrive!

To find out more, please visit Des Moines Home Source

Do You Qualify for a Moving Expense Deduction?

by Jon D. Smith
Have you recently moved or relocated as a result of a new job or job transfer? If yes, you might like to know that some of the costs associated with a move of this type may be used as a moving expense deduction on your income taxes. A few of things to keep in mind that help in determining if you would qualify for a moving expense deduction include:

  • The distance between the old home and the new job must be at least 50 miles
     
  • If you move within a year of taking the job at the new location
     
  • If you work full-time for at least 39 weeks (the total is 78 weeks if you are self-employed)

Whether a homeowner or renter, you can deduct the cost of moving household goods and the direct cost of moving you and your family. You can also deduct expenses for lodging during the move but not meals.

It is important to keep detailed records of all expenses during a move and
consult a tax expert to make sure that you take all the lawful tax deductions allowed by the IRS criteria for expenses related to selling your old home or buying your new one. For additional reading regarding moving expenses, the IRS publication No. 521 entitled "Tax Information on Moving Expenses" is also a great resource.

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Contact Information

Photo of Jon Smith, CRB, CRS, SRES, SFR Real Estate
Jon Smith, CRB, CRS, SRES, SFR
Iowa Realty
3521 Beaver Ave.
Des Moines IA 50310
515-240-2692
Fax: 515-453-6404
 

 

 

Licensed in the State of Iowa