Home Information for the Buyer and the Seller

Home Energy Audit

2011-09-25T12:55:00.000-05:00

With the exception of a mortgage payment, the largest homeowner expense is utilities; and energy is the major component. There are lots of contributing factors such as air leaks, insulation, heating and cooling equipment, water heaters and lighting.
It's estimated that 75% of the electricity to power home electronics is consumed when the products are turned off. Computers, monitors, TVs, cable and satellite boxes, DVRs and power adaptors are spinning your electric meter even when they're not being used.
Unplugging devices can actually make a difference in the size of your electric bill. Plugging several of these offenders into a power strip with a single on/off switch may make the task easier. Most computers have options to put them into sleep mode or even turn off when not in use.
Take 3 1/2 minutes and watch Energy 101. Consider hiring a professional home energy auditor or do-it-yourself. The Department of Energy has a checklist with some valuable suggestions.
If anyone has other energy saving ideas let me know.... email at debbie@debbiehaukap.com

Competing with Cash

2011-09-08T09:42:00.000-05:00

It's not fair! 29% of all sales made in June and July 2011 were cash. How does a buyer who needs a mortgage compete with a cash buyer?
You've been looking for a home for months after thinking about it for years. You've found the home you want and meets your family's needs. You write a contract but before it's even presented to the seller, another offer comes in. With all the homes on the market, you'd think you wouldn't have to deal with multiple offers but you'd be surprised how many times it does happen.
There are some proven strategies that can minimize the advantage of an all-cash buyer.

Get pre-approved and submit the letter from the lender with the offer
Move fast to minimize competing with other offers
Submit larger than normal earnest money to show your sincerity
Be flexible about closing and possession
Avoid unnecessary contingencies in the contract
Write a letter emotionalizing why you want the home

Call me for my list of Preferred Lenders. Their customer service is top rated. My direct line is 316.644.9114

Top 10 FHA Loan Advantages

2011-07-19T21:04:00.000-05:00

Fannie Mae and Freddie Mac underwritten conventional, FHA and VA loans account for the vast majority of mortgages chosen by buyers to finance their home purchase. While buyers have the choice on which product to use, there are some considerable advantages to FHA.

More tolerant for credit challenges than conventional loans.
Lower down payments than conventional loans.
Broader qualifying ratios - total house payment with MIP can be up to 31% of borrower's monthly gross income and total house payment with all recurring debt can be up to 43%.
Seller can contribute up to 6% of purchase price - this money must be specified in the contract and can be used to pay all or part of the buyer's closing costs, pre-paid items and/or buy-down of the interest rate.
Self-employed may qualify with adequate documentation - two year's tax returns and a current profit and loss statement would be required in addition to the normal qualifying and underwriting requirements.
Mortgage Insurance Premium can be released in five years when the balance is 78% of original sales price
Liberal use of gift monies - borrowers can receive a cash gift to assist in purchase from family members, buyer's employer, close friend, labor union or charity. A gift letter will be required specifying that the gift does not have to be repaid.
Special 203(k) program for buying a home that needs capital improvements - requires a firm contractor's bid attached to the contract specifying the work to be done. The home is appraised subject to the work being done. If approved, the home can close, the money for the improvements escrowed and paid when completed.
Loans are assumable at the existing interest rate - assumptions require buyer qualification but are actually easier than qualifying for a new mortgage. Closing costs are lower on assumptions than originating a new mortgage.
If the rate on the assumable mortgage is lower than current rates for new mortgages, it could add value to the property.

If you have more questions or need specific answers, please give me a call at 316-644-9114 or email at debbie@debbiehaukap.com anytime. I have the resources to help you through the buying or selling process.

Targeting the Mortgage Interest Deduction

2011-07-15T08:51:00.000-05:00

It's obviously going to be a Herculean task for Congress to balance the budget and reduce the deficit. It's sort of like the country song lyric that goes "everyone wants to go to Heaven but nobody wants to go now." It is estimated that the mortgage interest deduction cost the government $100 Billion last year which is why it is a target for cuts.
The Mortgage Interest Deduction has been part of Income Tax laws in this country since 1913. The United States of America is one of the few countries in the world that allow such a deduction. Our goverment has always supported homeownership as is evidenced in the different tax benefits it receives.

Mortgage interest deuction up to $1,000,000 in acquisition debt on a principal residence and second home
Deduction of interest on Home Equity debt of $100,000 over acquisition debt used for any purpose
Capital gain exclusion on up to $500,000 for married couples filing jointly and $250,000 for single homeowners
Favorable long-term capital gain rates if gain exceeds exclusion limits
Property tax deduction

There is an interesting relationship between a good economy and a healthy housing market. Contrasted to profits from the stock market which tend to be plowed back into other investments, profits from home sales tend to be spent on consumer products that directly benefit the economy.

The National Association of REALTORS supports the MID and reports that one job is created for every two homes sold. It further states that $60,000 is pumped into the economy for each home sold and that homeownership accounts for over $2 Trillion of the U.S. gross domestic product.

American homeowers are currently paying 80-90% of all federal income tax collected. Some economists believe that a healthy housing market is a leading indicator for economic recovery and that tampering with a significant homeowner benefit like the mortgage interest deduction would hurt the economy.

Who Represents You?

2011-07-06T07:51:00.000-05:00

In almost every state in the U.S., buyers have the option of being represented by their real estate agent. This relationship creates responsibilities that require the agent put their client's interests above their own.
The duties a buyer or seller can expect to receive among others are honesty, accountability, full disclosure, representation and reasonable skill and care. In a nutshell, the agent who represents you is working in your best interest.
It's a special relationship that doesn't exist with most of the other professionals involved in a real estate transaction. Mortgage and title officers are limited to their duties of honesty, accountability and specific requirements under the Real Estate Settlement and Procedures Act.
This special relationship with your real estate agent makes it advantageous to have them coordinate your efforts with the other professionals in the home buying process. Since most buyers' and sellers' transactions are infrequent, the agent can bring valuable experiences to the transaction.
As a Residential Finance Consultant I am trained and have special tools to help you make better decisions when you buy or sell and in between. My goal is to help you improve and maintain the investment in your home so I can earn the right to be your lifelong real estate professional.
Give me a call or send an email if you have any real estate questions. I have a network of professionals that can assists with any of your real estate needs.
Direct Line: 316.644.9114 or debbie@debbiehaukap.com

Start Your Projects

2011-06-05T20:06:00.000-05:00

Summertime is here and millions of Americans will be starting home improvement projects. Whether they're classified as maintenance, updating or energy saving, they should make homeownership more enjoyable.
Remodeling magazine's 2010-11 Cost vs. Value Report suggests that some improvements are a better investment than others. Front door and garage door replacements are two of the easiest and return the greatest percentage of cost on resale.
Kitchen and bathroom updates transform an older home and instantly give visitors and buyers a fresh impression. Countertops and appliances can be expensive but yield great results. Painting the cabinets and replacing the hardware is much less expensive to change the look and feel of the rooms.
Energy efficiency enhancements can improve your enjoyment of the home and help save money on utility costs.

Replace older appliances - refrigerators, ceiling fans, water heaters, air-conditioners
Add insulation to keep your home cool in the summer and warm in the winter
Seal air leaks around doors and windows; holes in attics and crawl spaces with caulk, spray foam or weather stripping - more information
Seal all heating and cooling system ducts - more information

Looking through the eyes of a buyer could show you what features most date your home and could order the priority that you tackle the projects. If you have any questions please don't hesitate to call or send me an email. I can meet with you to go over your priority list!! 316.644.9114 or debbie@debbiehaukap.com

Buy Now or Wait

2011-05-30T20:09:00.000-05:00

Uncertainty as to whether prices will continue to fall has to be one of the most common causes of buyer procrastination. Paying too much wouldn't be a smart thing but price isn't the only factor to consider. Interest rates have as much effect on housing costs as price.
A small increase in mortgage interest rates can offset a significant drop in home prices. If the price of the home were to come down by 5% but the interest rates were to go up by .5%, the payments might be close to the same.
In the example below, if the price of $175,000 home went down 5% but the interest rate went from 4.75% to 5.25%, the payments would actually be $4.98 more at the cheaper price. If while the buyer was waiting for the home to decrease 5% and the interest rate increased by 1%, the payments would actually go up by $55.30.
Then, of course, there is always the possiblility that the price of the home doesn't go down but the rate does go up by 1%. The payments would be $104.58 more per month, each and every month for as long as you have the mortgage on the home.
As a Residential Finance Consultant, I can provide solid information that will help you make better buying decisions. A home is a place to feel safe and secure, to raise your family, share with your friends and an investment. Call today to go over details, direct line: 316.644.9114 or email: debbie@debbiehaukap.com

Not So Fast Buyers!

2011-05-21T22:02:00.000-05:00

One of the challenges buyers are having with financing may be their own understanding or lack thereof.
In a recent survey done by research firm Ipsos for Zillow, a surprising number of incorrect answers to true or false questions were given by prospective buyers.
Over 3/4 didn't realize how the mortgage rate was determined for a borrower thinking that annual income was the most important factor. Other considerations lenders do evaluate are credit score, debt-to-income and loan-to-value ratios.
A variety of myths seem to have influenced some of the common answers such as interest rates are set and released once a day; FHA loans are for first-time buyers only; prequalification commits the lender; lender fees are not negotiable and adjustable rate mortgages always go up.
Buyers' misunderstanding of actual mortgage practices may give some insight into why more of them are not taking advantage of the greatly reduced prices and incredibly low mortgage rates.
While getting solid information about mortgages and being pre-approved from a lender are very important, it is only one step in the home buying process. Success in buying a home in today's unique market should begin with a real estate professional. I will coordinate all of the different parts of the transaction including mortgage, title, insurance and inspections. Call or email me for all your real estate questions. I have a great network of qualified vendors to call on for every step of the transaction. http://www.debbiehaukap.com/

More Affordable Than Ever

2011-04-28T22:00:00.000-05:00

The Housing Affordability Index reached a record high of 192.3 for February, 2011. Two contributing factors to the Index are the price adjustments homes have experienced in recent years combined with the unusually low mortgage rates make this an outstanding opportunity for buyers who can qualify.
Before the housing bubble burst in 2006, the index average for the year was 108. The high prices and higher interest rates restricted many buyers from purchasing. As the market started to deteriorate, which resulted in declining values and lower interest rates, the index started to rise.
The opportunities are not being seized by buyers and some real estate professionals feel that it's because there is confusion in the marketplace. Buyers are uncertain whether they would qualify and whether now is a good time to be purchasing a home.
All markets are different and every situation is unique. The only certain way to determine would be to investigate your individual situation.
The National Association of Realtors releases the index at the end of each month with a two month lag time for compiling the information. When the index is at 100, a median income family can afford a median price home. As the index increases, housing affordability increases.
Call me with your real estate questions. Your Real Estate Resource for Life.....

Rent or Buy...You Pay for the House You Occupy

2011-04-19T21:47:00.001-05:00

Whether you rent or buy, you pay for the house you occupy. You must live somewhere and there's a price to pay for it. A simple analysis will show you whether it's cheaper to rent or buy.

Some people don't have any choice but to rent because they don't have the means to qualify for a loan. But for those who do have a down payment and good credit, they actually have a choice of whether to rent or buy. In some cases, owning will cost significantly less than renting.

Rentals are in high demand in many markets and rents are going up. People who have experienced foreclosures and short sales have increased demand. The first comparison a discerning buyer needs to make is whether the house payment is lower than what they'd have to pay in rent.
The next comparison needs to consider the other benefits that accrue to an owner such as principal reduction, appreciation and tax savings. These can dramatically weigh in favor of owning rather than renting.
Tenants have made the decision to buy a home. The decision currently facing them is whether to buy it for themselves or their landlord.

Get in touch with me today and I can do a "Rent vs Own" analysis for you!

Home Inventory

2011-04-05T21:25:00.000-05:00

Recently, a homeowner had a burglary and part of the insurance claim was denied because they didn't have proof of purchase or a current inventory of their personal belongings. This is something that could happen to anyone. Even if you had an inventory but it was several years old, it could cost you money.
Some homeowners who have placed an insurance claim for losses say that they realized something was missing months after they had filed. The inventory can actually serve as a guide to make sure you get compensated for all of your loss.
The best proof of purchase is to have a receipt for the item. The reality of the situation is that most people don't keep receipts. The next best item is to have an inventory and the more details like pictures, the better.
Contact me for a Home Inventory. Once you get it completed, put it somewhere safe so you'll have it when you need it. Saving it in the "Cloud" like Microsoft Office Live is convenient because you can acess it from any computer with Internet access.

Deadline Quickly Approaching

2011-03-22T21:03:00.000-05:00

"Besides the obvious Federal Income Tax deadline which is April 18th this year, the deadline for individuals who can qualify for the Homebuyers Tax Credit is quickly approaching - April 30, 2011.
The extension was granted for members of the military, Intelligence and Foreign Service who have served outside of the U.S. for at least 90 days between January 1, 2009 and May 1, 2010. The sales contract must be signed by all parties by April 30, 2011 and closed by June 30, 2011.
Qualifying taxpayers may be eligible for either the first-time credit of $8,000 or the current homeowner credit of $6,500. To get additional information from IRS.gov, click here.
This is a wonderful opportunity for a person to have a home of their own, to raise their family, share with their friends and feel safe and secure. We're in a market that is ripe with advantages for buyers who can afford it. Prices have come down considerably in the last two to three years. Interest rates are at an almost all-time low but are expected to rise soon. The selection of homes is good which allows buyers to find the home that meets their needs.
A qualifying veteran with eligibility could get into a home with no down payment, no closing costs if paid by the seller and the tax credit. These tax credits are refundable which means that any amount that isn't used to offset tax liability will be refunded to the taxpayer in a check. You're practically being paid to buy a home.
There probably will never be this combination of advantages available for buyers who qualify. Don't miss this opportunity. You owe it to yourself and your family to see that it may actually cost you less to own than to rent and what it will take to get into a home."

“I help people understand the tax advantages, financing alternatives, and investment aspects of home ownership and why now is an incredible time to buy.” Call me for all the details. Debbie Haukap, Realtor® 316-644-9114.

Even though you may not be ready to sell this will help keep you updated.

2011-03-22T20:51:00.000-05:00

Repair and Replace Door Hardware To Update Rooms
Repair and replace door hardware that makes rooms look dingy and outdated. We’ll show you how door and cabinet pulls, knobs, and hinges can give your home new sparkle. Read

Visit houselogic.com for more articles like this.

Deadline for Homebuyer's Tax Credit Extension

2011-03-14T11:35:00.000-05:00

Please give me a call if you think you qualify for this benefit and I can assist you through the steps.

Mortgage Myths

2011-03-02T21:23:00.000-06:00

"It's impossible to get low down payment loans." - UNTRUE!
FHA down payments are only 3.5% and VA is 0%. In some areas, there may be some 100% USDA loans available.

"It takes perfect credit to get a loan." - UNTRUE!
There is a relationship of better rates to better credit but many issues on a credit report may be explained. The way to know for sure is to speak to a reliable lender.

"If I've had a bankruptcy or foreclosure, I can't qualify." - UNTRUE!
Credit history following a short sale or foreclosure is very important and there can be extenuating circumstances. It only takes a few moments with a reliable lending professional to find out if your individual situation will allow you to qualify.

"Getting pre-approved is expensive." - UNTRUE!
Usually, the only expense to getting pre-approved is the cost of the credit report which could be around $35. The advantage is that you will know that you qualify for a particular mortgage amount.

"I should wait to qualify until I find a home." - UNTRUE!
The best interest rates are only available for the highest credit scores. It can take time to qualify for a mortgage especially if there are issues that need to be corrected. It is to your advantage to start the qualifying process early in your home search.

"All lenders are the same." - UNTRUE!
Reliable lending professionals will explain the entire process before collecting fees, quote fees up-front, have competitive products, do what is necessary to get the loan approved and close at the locked rate and terms. Ask for recommendations from recent borrowers.

"Adjustable rate mortgages are more expensive than fixed rate mortgages." - UNTRUE!
Adjustable rate mortgages can be less expensive than fixed rates if the buyers' circumstances warrant it. There are many variables and you need to be aware of them before deciding which type of loan to finance your purchase; the ARM may provide the cheapest cost of housing.
Buyers and Sellers need solid information to make good decisions. The agent who represents you in the sales may be the BEST recommendation for a reliable lender. The mortgage plays an enormous role in determining the overall cost of housing and you need solid information to make good decisions.
If you have questions please give me a call or send an email today.

Mortgage Loans and Lenders to Avoid

2011-02-28T14:03:00.000-06:00

In many cases, the seller and the buyer are actually represented by their real estate agent. In those situations, there is a fiduciary relationship created that requires the agent put the client's interests above their own.

There is generally no such relationship between buyers and lenders. Some of the housing crisis issues may have been avoided had the lenders been more concerned for the buyer's best interests.

The following are a few warning signs that should cause a buyer to do much closer investigation:

1.Claims that bad credit is not an issue
2.Prepayment penalty
3.Larger than normal loan charges
4.Rate gouging by brokers - yield-spread premium
5.Loans without escrow accounts for taxes and insurance
6.ARM loans that only go up and not down
7.Initial loan to secure property with plan to replace it later
As a real estate professional, I can recommend a lender who is experienced in our market and has a history of providing good service. A real estate professional can be a good intermediary between you and the lender. Call me today for more information.

Throw a FREE Super Bowl Game Day Fiesta

2011-02-01T20:20:00.000-06:00

Saving for the Super Bowl: How to Throw a FREE Game Day Fiesta

Article From HouseLogic.com

Published: January 25, 2011Get 6 smart tips to save big on your game-day party--and share some of your own tips for a chance to win a Super Bowl bash on us.
On Super Bowl Sunday, you want your head in the game, not worrying that your party is a drag or your wallet won't recover. HouseLogic has rounded up some smart ways to offset your party-planning expenses without sacrificing the fun come game time.

We want to hear from you, too. Join in the conversation through Facebook (http://www.facebook.com/HouseLogic) and you'll have a chance to win a $100 Visa gift card to spend on game day preparations, whether those include an extra-large party platter or your dream Pittsburgh Steelers or Green Bay Packers Fathead (http://www.fathead.com) wall graphic.

1. Cheer for charity

Have fun watching the game with friends and family while supporting a good cause--and take a tax deduction (http://www.celebrations.com/content/how-to-throw-a-charity-cocktail-party), too. Here's what to do:

•Choose a charity or cause you love.

•Provide guests with suggested donations. For example, if you want to raise $500, recommend each person donate $25.

•Ask your local liquor store if it would donate a little free product in exchange for free promotion at your event. More often than not, the business is willing.

2. Get sponsored

Let a brand donate their food and drink to your party. Here's how to get involved:

•HouseParty.com (http://www.houseparty.com/events) has a host of brands willing to provide free goods and services for your party, including DiGiorno Pizza and Kraft.

•Pick the brand you'd like to host and then complete a questionnaire about yourself and your knowledge of the brand. Your answers help the House Party team know if you're a good fit for the promotion.

•If you're chosen, the brand will supply a host of party goods for you and your friends to enjoy.

3. Go green to save green

Some NFL stadiums have been taking measures to go green (http://green.blogs.nytimes.com/2009/02/01/efficiency-and-recycling-at-the-super-bowl/) for years now, saving hundreds of thousands in energy costs and recycling everything from straws to cooking grease. Here's how you can conserve at home:

•Use real dishes. Save about $20 and space in a landfill by not buying plastic plates, cups, and silverware.

•Send Evites. Don't send paper invitations. Use free electronic invitations instead.

•Recycle, donate, or sell your big, old TV. Use the big game as an excuse to treat yourself to a sleek, energy-efficient LCD TV (http://www.houselogic.com/articles/5-tips-saving-energy-family-room/). It'll cost you up front, though you may find a pre-game day deal (see below) and you'll save on energy in the long run.

•"Hypercook" it. A great way to save energy (and money) is to turn your oven off before your dish is finished cooking (http://www.seriouseats.com/2009/09/serious-green-save-energy-with-hypercooking-tips.html). You can also skip preheating or use a smaller cooker like a toaster oven to make some meals.

•Turn off bar room light displays (http://www.charlesandhudson.com/archives/2010/02/super_bowl_party_prep.htm). You may love your Coors Light neon sign but you don't need it, especially when the game should be taking center stage.

4. Go coupon hunting

There are tons of blogs and websites out there that have the scoop on the latest deals at hundreds of retailers. Save big on everything from food to supplies to electronics just by spending a few minutes doing an online search. Here's what we found:

•CouponMountain.com (http://www.couponmountain.com/super-bowl-deals-sales.html) has deals on electronics, decorations, food, gear, and even tickets to the big game. And sites like Bargain Babe (http://bargainbabe.com/) and Deal Seeking Mom (http://dealseekingmom.com/) also keep tabs on great sales.

•Safeway (http://www.safeway.com/IFL/Grocery/Home) is also helping football fans prepare for Super Bowl parties with a host of party-themed recipes and coupons. (http://queenbeecoupons.com/2011/01/safeway-joy-of-football-coupon-book-over-70-in-savings/)

•Also nab that LCD TV for less on sites like overstock.com (http://www.overstock.com/Electronics/LCD-TVs/12970/subcat.html) or catch Super Bowl season sales (http://www.zdnet.com/blog/gadgetreviews/sears-and-best-buy-planning-pre-super-bowl-hdtv-sales/21736) at stores like Best Buy or Sears.

5. Get a little help from your friends

After all, it's the company that really makes the party special. So rather than breaking your back (and the bank) trying to get everything done by yourself, include your guests and make it fun.

•Have a competitive potluck. Have a cook-off for fans of opposing teams (or let each person fend for themselves). It'll add to the spirit of the day and save you big on groceries.

•Ask for help. Need extra chairs? Ask your friends to bring them instead of buying them. Looking for some preshow entertainment? Ask your friends to bring their favorite games to play. That's what friends are for.

6. Tell us your money-saving tips!

Let us know some of your own great money-saving tips for hosting a Super Bowl party on Facebook (http://www.facebook.com/HouseLogic) -and you'll have the chance to win a $100 gift card from HouseLogic!

No purchase necessary to enter or win. Must be a U.S. resident and 18 years of age or older at time of entry. Void where prohibited or restricted by law. Winner will be chosen at 2 p.m. Eastern time on January 31.