Real Estate Information Archive

​If the art of dance is your ticket, you don't want to miss the stunningly beautiful choreography on stage this weekend in Newark. The New Jersey Performing Arts Center is presenting a Mother's Day weekend special engagement with the Alvin Ailey American Dance Theater. There are shows scheduled for 8pm Friday and Saturday, and Sunday at 3pm.  Tickets range from $29 to $90 and can be purchased on the NJPac website.

This blog is maintained by Michael of Kim Hughes & Company.

​As we ease into warmer weather, we approach the terrible discomfort of allergy season. Every Spring, millions of Americans suffer through the sneezing, itching, wheezing and coughing cause by allergies to pollen, mold and dust-mites, among other things. They turn to their doctors and pharmacists for help dealing with the symptoms. But what can you do to make your home allergen free? As it turns out, plenty!

Bedrooms

• Keep the windows closed.
• Vacuum carpets twice a week with HEPA-Filter vacuum.
• Wash bed linens once a week in hot water, and blankets and mattress pads twice a month.
• Wash curtains and blinds once a a month, or replace them with shades.
• Cover beds and pillows with dust-mite and allergen-impermeable covers.
• Dust with a damp rag - You want to capture dust particles, not stir them up into the air!
• Change your air filters every month to six weeks.
• Keep pets out. Pets are magnets for dust and they'll undermine all your other efforts if you let them in the bedroom.

Bathrooms

• Make sure you run the fan when you shower.
• No wallpaper. It's a perfect place for mold to hide behind.
• No wall-to-wall carpet. Bath mats washed once a week
• Wash bath towels once a week in hot water.
• Wash shower curtains once a month.
• Clean your toothbrush holder!

Kitchens

• Don't leave food or dirty dishes out.
• Clean refrigerator spills right away to avoid mold.
• Run the exhaust fan when cooking to reduce moisture.
• Replace carpet in the kitchen with tile or hardwood floors.
• Scrub the garbage can and deodorize your garbage disposal.

More Help

This blog is maintained by Michael of Kim Hughes & Company.

Owning a home is major investment in your financial future. Unfortunately, the last several years have been tough for a lot of people who would like to buy a home. So, it comes as good news that the way the three major credit bureaus calculate your credit score is changing to help people with limited or no credit histories. Under the change, debts paid in full or settle will no longer be taken into account. Previously, those debts would be a factor for up to seven years, even if the balance on them was zero. In addition, victims of natural disaster won't be penalized for negative accounts in the aftermath of the event. VantageScore is used by seven of the top ten U.S. financial institutions and four of the top ten auto and mortgage lenders.

FICO, the most used credit scoring model, may be making changes as well. Monday, they announced they would look into ways to take alternative records into account for people with limited to no credit histories. People who are trying to improve their scores should consider FICO's top three tips for repairing credit.

Check Your Credit Report – This is your first step to identifying what needs to be paid or corrected.

Setup Payment Reminders – Your best strategy for repairing your credit is to pay your debts on time.

Reduce the Amount of Debt You Owe – This sounds obvious, but even paying off a debt a little at a time can be a big boost for your credit.

You have to show lenders you are serious about being financially responsible before they’re going to be willing to give you a mortgage loan. For more about those tips and repairing your credit history, see this story on myFico.com and this report from the Federal Trade Commission.

If you're ready to buy now, let's sit down and talk about what you want and need. And make your dreams come true!

This blog is maintained by Michael of Kim Hughes & Company.

Hardwood flooring can be a great asset to the value of your home.  But to get the full value, your hardwood floors must be in the best possible condition.  Home owners who don’t take care of their floors soon have expensive and possibly extensive repairs to worry about. With that in mind, here are some ideas about protecting your investment.

• Vacuum, sweep or dust mop hardwood floors at least once a week.
• Clean spills and water from the floor immediately.
• Use interior and exterior floor mats to collected dirt, moisture and debris.
• Use area rugs and runners with slip-resistant backing in high-traffic areas.
• Use pads under furniture legs and replace hard rollers with rubber models.
• Keep animal nails trimmed.
• Don't push heavy furniture or appliances across the surface.

Joe Harpole of Pro-Care in Nashville provides some additional insight in this video:

If you have hardwoods that are not in good condition, you have some options to improve the situation.  Older, craftsmen-style wooden floors can be worth the expensive of refinishing them completely.   Refinishing involves completely sanding off the previous finish before replacing it.  Here is a good article on refinishing over at hardwoodinstaller.com.

Alternatively, you might consider replacing wood floors that have been badly battered over the years. These days, there are a wide variety of options. In addition to traditional woods, laminate and bamboo flooring are popular.

Making sure your flooring is in great shape is a key to attracting potential buyers.  I can help you determine how much value refinishing or renovating your flooring can be. So give me a call, and let’s get your home market-ready now!

This blog is maintained by Michael of Kim Hughes & Company.

In a tight economy, many people are having to look far and wide for the right job opportunities. Which can mean moving to unfamiliar places, a daunting prospect, especially if you have school-age children. Finding the right neighborhoods and school districts is a vital part of making the experience a good one in the long run.

To get the information you need to make a good decision, you’ll rely a lot on a local realtor, someone who has an established network of contacts throughout the area. But, you probably have your own network, and it’s a perfect time to put it to use.

I’m talking about Facebook and other social media sites. If you’re a regular online, let your friends and contacts know where you’re planning to move and ask them for information about the area. Ask about neighborhoods, schools, local parks and attractions, favorite restaurants and other places that may soon be a big part of your new life. If your Facebook friends don’t know themselves, maybe they have other friends that do.

You can do the same thing with other services like Twitter (http://twitter.com) or LinkedIn (http://linkedin.com). Tweeting something like: “Planning to move to Ridgewood. What are the best schools in town? #NewJersey” is a simple way to solicit information from a variety of people.

If you already have a job in the new location, make sure to ask your new company’s human resources department for any assistance they can offer you. Find out specifics like where you’ll need to go to get your car registered and a new driver’s license. Churches can be an excellent resource as well.

Of course, you’re going to want to see your options personally before you make any decision. And you can plan ahead for your scouting trip by using services like Yelp (http://yelp.com) to pinpoint specific shops, services and restaurants that will be important to you.

And having prepared before you tour the area with a realtor, you’ll be in a much better position to ask specific questions and provide information that will make your search for a new home a much easier and enjoyable experience.

Staging is a method used to set your home up so that it appeals to a variety of possible buyers.  It will help to impress them and it will make your home look tidy, well taken care of and spacious.  They can picture themselves moving in!

Below are some of the top mistakes sellers make when they are preparing their house for the market:

• Don't go it alone. Get advice from others on what looks neat and organized. Get your realtor’s advice; or if selling on your own, have a trusted third party walk the home with you and point out areas that look cluttered or cramped.
• There is no need to make extensive renovations or replace all the furniture. Keep things simple and your investments small. Updates to paint, replacing light fixtures or changing out pillows or bedcovers can all go a long way to giving your home an updated look without major expense.
• Leave out personal items and knick-knacks. Be sure to remove family photos, school projects and other personal items that might make it hard for a new family to envision themselves living in the space.
• If you need some inspiration, visit a few model homes for sale for ideas on attractive staging.  Open up heavy curtains with tie backs and make sure that your furniture isn’t in the way of creating, bright open spaces. If you need to take some things out, try temporary storage.
• Avoid painting with dark or intense colors. Keep your wall and flooring colors to neutral, adaptable tones. Even if bright or varied color palettes are trendy, they are too much for most prospective buyers..
• Avoid overstaging with accessories. Over the top accessories, including flowers, scents, and home décor items not only make it look like you are trying too hard, they can detract from the real form and functionality of your house.

When staging your home, keep it simple! Let people be able to envision their own belongings there and have them ponder all the possibilities in making this their Bergen County dream home.

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Have you received notification that your home loan  been sold? Many homeowners are in the same boat, so try not to be surprised when your home loan has been sold to a different lender. Though it may be a shock, it is very common these days for a mortgage to be sold. Just as other financial commodities are sold, home loans are sold on the free market just like stocks and bonds. When a mortgage is sold to a different financial institution, it means that the servicing rights to the loan have been transferred to the new lender. 

They will let you know, and then you will start sending your mortgage payment to a new company. The transaction may be seamless or you may see changes, so you should understand what has happened and what your rights as the borrower are.

You probably received a statement when you got your mortgage that indication some level of likelihood that your loan might be sold during its life to another lender. If that does happen, then federal mandates require both the seller and the buyer of your paper to notify you of the pending sale and the closed sale.

Your current lender must notify you, in writing, at least fifteen days before your next payment is due. The lender is also required to give you complete contact information – company name, physical address, phone number and account manager of the new servicer.

The servicer buying your loan is required to provide this information to you as well. They are required to provide a direct link to a person you can speak to – not just an automated system.

This protects you from mortgage scams directing you to send payments to an unknown entity via P.O. Box or wire and gives you the right to ask questions about the status of your loan and receive prompt answers. In addition, you are protected from any delinquency status for 60 days during the transition.

Loans with late payment documentation will most likely stay where they are as most servicers aren’t interested in purchasing loans that have troubles go along with them.  If you have an application for a loan modification, the same thing applies, it most likely will not be sold.  If it does happen to be sold after you have began the loan modification process, be prepared to provide them with additional paperwork. You may even have to start all over where it is a new lender.

The Mortgage Bankers Association of America (MBAA) has a great consumer site – The Home Loan Learning Center. You can also contact them for more information via phone at (202) 557-2700.

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Are you afraid of being turned down for a mortgage? Or maybe you have been turned down. The stagnant economy and tight lender requirements have many home buyers concerned.  The good news is that you may not have to walk away from your dream home.  There are alternatives that many home buyers are searching out as alternatives to traditional mortgages now that the lending guidelines are tighter than ever.

Below are a few options to consider, but note that everyones situation is different and some of these may not be right for you.

• Borrow From Life Insurance: You may have a whole life or other insurance policy that increases in value over time. If you borrow against that cash value, you don’t have to go through standard loan qualification.  Be sure to check with your insurance company about the risks involved
• Owner/Seller Financing: If the seller is an investor, or if the seller owns the property free and clear, they may offer owner or seller financing options to help move the property. You will still be responsible for principal, interest and scheduled payments through a promissory note, but you probably won’t go through the rigorous qualification process that a bank requires. Typically owner or seller financing also saves mortgage origination fees and other fees tacked on by most lenders.
• Borrow From An IRA: If you have a self-directed IRA, then you know that you can use the IRA to invest in a number of assets, including mortgages. Although you can’t use your own IRA to buy your personal home, a family member or other investor can use a self-directed IRA as the investment vehicle for your property. Private investors often step in to help with acquisition loans, although you can expect to pay a higher rate for the initial loan.
• Lease/Purchase Option: Many investment owners are willing to offer a lease/purchase option or rent to own agreement. You are able to rent the property for a specific term, usually with higher payments than the market rate; and your rents go toward the purchase or down payment of the property.

Always do your homework with any home purchase, if you are looking at alternative financing methods. Make sure the title to the property is free and clear and that you meet all the state lending requirements for your specific financing. A realtor or title company should be able to help you through the process. You also want to be sure that you are able to afford the monthly payment or repayment plan and that the investment in the home you want is sound.

Have any other ideas for homeowners who are considering other options for financing? 

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Are you in need of a laugh and a good time? The AnitaLaugh Improvisation and Sketch Comedy troupe will be performing their “love of laughter” show February 13 at 7:00PM at the Westwood Community Center. 

This show is full of celebrity impressions and memorable characters! Go and enjoy a night of comedy that is appropriate for all ages and bring your family!

Join the laughter and entertainment at 55 Jefferson Avenue in Westwood.  Click here for more information.

Improv comedy is the best, have you ever been to one?

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In this day and age, lenders have to be stricter with their requirements on who they approve for home loans.  If you are planning on buying a new home and applying for a mortgage the current requirements are very important to know. One of them is your debt-to-income ratio. 

Debt-to-income ratio is the percentage of a consumer's monthly gross income that goes toward paying debts.  It includes credit card debt, existing mortgages, auto loans, and any other personal debt.

Your mortgage lender will look at your Debt-To-Income (DTI) to evaluate your ability to afford your new mortgage. You should have a good idea of what your DTI ratio is before you approach a lender or consider buying a new home.

Best case scenario, you want to achieve a low DTI ratio. A high number means that you have less disposable income and less ability to maintain the home once you purchase it. With foreclosures at an all-time high, lenders are not willing to assume any additional risk in lending.

Most lenders seek DTI ratios in the 20-36% range or lower, with no more than 28% of debt dedicated to the mortgage itself. While some lenders will consider higher ratios, DTIs in the upper 30% range are considered high risk.

There are several different calculators available online to help you determine your ratio, and you can always check with your financial institution for guidance on determining your DTI ratio.

Here’s a simple formula:

Add all your monthly payments (mortgage or rent, car, credit cards, any other debt payments)

Add your gross income (before taxes), bonuses, alimony, or any other outside income and divide by 12

Then divide the total number in (1) by the final number in (2)

The result is your DTI ratio.

It is always a good idea to know your DTI, whether you are ready to buy a new home or you just want to stay up to date on your financial health. This way you can start taking steps to lower your ratio and become as close to debt-free as you can.

With this said, do you know what your DTI is? 

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