My New Blog

The Nest, a home-improvement Web site, says before making any big changes to your home you should ask yourself these big questions:

1. How long do I plan to stay in my house after the renovations? The longer you plan to live there, the more creative you can be. But if you're planning on selling the house in the next five years, keep potential buyers in mind with your choices. In the latter case, for instance, go with neutral colors in the kitchen and bathroom, and consider maple cabinets. Some people hate oak, others hate cherry, but the majority can live with maple.
   
   
2. Am I doing just cosmetic fixes or am I ready for an all-out overhaul? It's OK to make small changes one at a time, but think long-term about the next step. For example, if you're buying a new sink, buy one with enough holes on the deck for the faucet, sprayer and soap dispenser you might want to add on later. (Cutting more holes into stainless steel or porcelain after the sink is installed is an onerous job you don't want to get stuck with.) And if you know you're going to buy new cabinets later, don't replace the countertop with expensive granite now. The chances of reusing it are very slim -- either it breaks when you try to remove it, or it doesn't match the footprint of the new cabinets.
   
   
3. Am I prepared for the home upheaval? Be realistic about how long these changes might take. Renovations can go on for months, so you need to be prepared to make do without that bathroom, kitchen or bedroom. When checking references before you hire your contractor, be sure to ask if the company finished the work on time. You'd be surprised how quickly a week can turn into a month. And if you're bunking up with your in-laws during renovation, that month can seem like a year.
   
   
4. Are the renovations keeping with the style of my home? Any big changes you make to a home inside should reflect what future buyers will expect from the outside. If you live in a Victorian house, don't make it too contemporary. People who see a historical exterior will expect a historical interior, so stay true to the details. The same goes for a contemporary or modern home, where future buyers may not expect old-fashioned details like antique crown molding.
   
   
5. Are my DIY choices reasonable? You may consider yourself handy, but many do-it-yourself jobs demand your time more than anything else. If you have a full-time job, are you capable of taking on a second one? Some makeovers that are not technically difficult can take longer than you think. For that reason, if you start any job yourself, try to sample it before committing to the whole thing. For example, while refinishing cabinets with a new stain isn't rocket science, sanding down each one can take forever.

A final tip: if you do plan to follow through with a large-scale renovation, do the smallest room in the house from start to finish -- the insulating, rewiring, painting, refinishing, tiling -- so you gain a sense of accomplishment.

Mystery solved!

The Five Factors of Credit Scoring:

Payment History has a 35% impact. Paying debt on time and in full has a positive impact, and late payments, judgments and charge-offs have a negative impact.

Outstanding Credit Balances have a 30% impact. Debt ratio of outstanding balance to available credit is important. Keeping that below 50% is wise and below 30% even wiser. It is never a good idea to close an account; the debt ratio will go up and the number of seasoned lines will decrease. Pay outstanding debt down as close to zero as possible and evenly redistribute the remaining balance among the open lines. The increased interest incurred by moving a balance from a 0% card to a 23% card will be minimal relative to what the increased mortgage debt might be with a low credit score. Hitting the maximums of available credit can be very negative. It may be worth calling and asking the credit company to increase your available credit to lower the debt ratio, provided they can do so without a hard credit inquiry.

Length of Credit History has a 15% impact. The length of time a particular credit line has been opened is important. A seasoned borrower is stronger. Opening new credit cards will decrease the average length, and therefore hurt this portion of the score.

Type of Credit has a 10% impact. A mix of auto loans, credit cards and mortgages is positive, rather than a concentration in credit cards only. Careful, too, when getting credit at a store that is not a department store: the credit agencies frown on cards for more specialized stores where you’re likely to only make one purchase, as they seem to show desperation.

Inquiries have a 10% impact. Hard inquiries for credit will negatively impact the score. Auto and mortgage inquiries receive special treatment and 20 inquiries can be made in a 14-day period for auto or mortgage and will be treated as only 1 inquiry. The maximum number of inquiries that will reduce the score is 10. Any inquiries beyond that in a six -month period will have no further impact on the borrower. Each hard inquiry can cost 2-50 points on a credit score.

Using this information can actually help you taylor your credit in specific areas to increase your score. I have had a tremendous amount of education in credit and credit repair issues and I am available at any time to discuss it further. As always, my time is free and without obligation. I encourage you to call or email today.

Eric

enichols@fcmapporved.com

541-543-0893

They’re setting aside time for pet lovers to have their pet’s photo taken with Santa Claus. Some malls have gone so far as to provide snowflake sweaters for Fluffy and reindeer ears for Mr. Fido, so they can look their best for their holiday moment.

Santa has been known to pose with a wide range of pets, from dogs and cats to ferrets and lizards.

Big-box pet stores have been offering photo opportunities with Santa for years, but malls have been slower to catch on.

“In the past there was hesitancy to have it because of restrictions in the shopping environment, but we know now pets are just as important for many people as their children,” said Wally Brewster, senior vice president of marketing and communications at Chicago-based General Growth Properties Inc. “Where people would dress up their child to get a picture with Santa, they’re now dressing up their pets.”

General Growth is hosting holiday pet nights at more than 150 malls nationwide, including at Northbrook Court in Northbrook and Spring Hill Mall in West Dundee. Yorktown Center in Lombard and Gurnee Mills in Gurnee also are hosting pet nights this month.

Malls also are making picture-taking more comfortable for Santa. The latest development: lap pads to guard against accidents.

Do you realize that the only time in our lives when we like to get old is when we're kids? If you're less than 10 years old, you're so excited about aging that you think in fractions.

'How old are you?' I'm four and a half!' you're never thirty-six and a half. you're four and a half, going on five! That's the key.

You get into your teens, now they can't hold you back. You jump to the next number, or even a few ahead.

'How old are you?' I'm gonna be 16!' You could be 13, but hey, you're gonna be 16! And then the greatest day of your life . . You become 21. Even the words sound like a ceremony . . YOU BECOME 21. YESSSS!!!

But then you turn 30. Oooohh, what happened there? Makes you sound like bad milk! He TURNED; we had to throw him out. There's no fun now, you're Just a sour-dumpling. What's wrong? What's changed.

You BECOME 21, you TURN 30, then you're PUSHING 40. Whoa! Put on the brakes, it's all slipping away. Before you know it, you REACH 50.

And your dreams are gone.

But wait!!! You MAKE it to 60. You didn't think you would.

So you BECOME 21, TURN 30, PUSH 40, REACH 50 and MAKE it to 60.

You've built up so much speed that you HIT 70! After that it's a day-by-day thing; you HIT Wednesday.

You get into your 80's and every day is a complete cycle; you HIT lunch; you TURN 4:30; you REACH bedtime. And it doesn't end there. Into the 90's, you start going backwards; 'I Was JUST 92.'

Then a strange thing happens. If you make it over 100, you become a little kid again.' I'm 100 and a half!'

May you all make it to a healthy 100 and a half!

AND ALWAYS REMEMBER:

Life is not measured by the number of breaths we take, but by the moments that take our breath away.

First the not so good news:

• FHA minimum down payments for borrowers are going to rise, going from 3% down payment to 3 1/2% in 2009. This will require a slightly larger down payment from the home purchaser and a little more equity from someone wanting to refinance.

Some better news: (hopefully):

• There is a compromise being discussed and some handshake agreements have been made between Congressman Barney Frank and the rest of the Senate in regards to bringing back seller funded down payment assistance plans. These include the very successful Nehemiah program and several other non profits that work on behalf of buyers to secure down payment funds or "grants". In the past, someone purchasing a home could receive up to 6% of the sales price as a direct contribution from the seller to use for closing costs and related items. With the down payment assistance programs, they could receive an additional 3% of the sales price to use as a down payment on the property. This was a very powerful tool, if used wisely. It allowed a home purchaser to get into a home for little or nothing down. The important piece is helping the buyer to determine that the payments on the home will be within their budget. There will however, be some qualifiers to this program:
• Borrowers with credit above 680 will be allowed to use the program without penalty or restriction
• Borrowers with credit from 620 to 679 could be subject to higher mortgage insurance premiums. No amount has been discussed so far, that I am aware of.
• Borrowers with credit below 620 would not be able to use this program until at least mid 2009.

Overall I think the news is very promising. I have a much more in depth analysis available to anyone that wants it, just let me know and I will email it to you. It is my hope that congress comes to the realization that new first time home buyers combined with programs like these can help us pull out of the housing slump we are in and restore some value to homeowners everywhere.

Irresistible incentives can be enticing. Many home builders are offering them, and this can make it difficult to consider purchasing an existing home. But, while many buyers will be ready for a brand-new home, incentives aren’t the only considerations attached to this important purchase. There can be more costs and stresses tied to acquiring a new home than a gently used one, and we’ve outlined a few below:

• A sudden increase in driving and pumping gas is unsettling. Generally, existing homes are closer to town, near jobs, stores, public transportation, services, schools and more. New subdivisions tend to be farther out of town, sometimes with very few of these necessities nearby. This can mean longer commutes and trips on weekends.

• Call the decorator because we’re too busy. Soak in that new home smell and feel. It’s great. But wait a minute-the windows are bare, and there’s no landscaping, wallpaper or any decorating, and the holidays and folks are coming. While this can be the fun part of a new home for many, it can turn expensive and stressful, especially for working parents with children. Buyers can often find an existing home they can live in while accomplishing the decorating changes over time without piling on more debt. And many sellers have already neutralized and made the necessary repairs in order to sell more quickly.

• The real monthly costs and taxes are what? Usually, existing homes cost less per square foot due to escalating land costs in new subdivisions. New homes are often built in outlying areas where the municipalities need to charge higher taxes as there are fewer families to pay for basic services. Additionally, newer homes are often subject to assessment fees for amenities the family may or may not use, which must be considered now and for potential resale.

• We’re feeling stressed with all this mess. New homes are often in areas where building is still occurring. Owners must be prepared for the daily noise and dust of construction crews, trucks, neighbors moving in, and more. Tough decisions yes, but the dropping housing marker and low rates are creating situations were we at least have all the options.

Have a great weekend everybody!

Here is recent action posted from up in Portland, as reported by The Seattle Post Intelligencer:

A former loan officer has been sentenced to more than 5 years in federal prison for his role in a mortgage fraud scheme that prosecutors say involved nearly 70 different properties.

A federal judge also ordered 50-year-old Marty Ray Folwick of Portland to pay nearly $537,000 in restitution.

Folwick pleaded guilty Oct. 2 to bank fraud, wire fraud, and money laundering charges.

Prosecutors say Folwick found so-called "straw buyers" for the property and then falsified the loan application by overstating their monthly income.

They say he also failed to disclose the buyers had an outstanding mortgage on another property, or that he was receiving a $25,000 kickback from the transaction.

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• Its my hope that as the situation gets tighter for loan officers, that natural selection will thin the crooks from the ranks, the fat cats that do loans based upon enriching themselves rather than benefiting the client. If you have any suggestions for my blog or want me to expand on a previous topic, please drop me a line!

Eric