Save $$$ this summer! Prepare Your Home to Save on Utility Bills.

How to Prepare Your Home to Save on Utility Bills this Summer

RISMEDIA, Saturday, June 11, 2016— Summer is right around the corner! When the temperatures heat up, you may notice that your utility bills slowly begin to increase as well. But don’t worry, there’s still time to prepare your home to save on utility bills this summer. Start with these simple tips:

Install a programmable thermostat.

Newer thermostat models allow you to set different temperatures for various times throughout the day. For example, you could set your thermostat to turn off while you’re at work and then cool down right around the time you’re on your way home. These programmable thermostats allow you to cut back the energy used by your air conditioner and therefore save on utility bills.

Apply window film.

You may have heard that installing drapes or blinds on your windows will help you cut down on the heat that flows into your home, which is true. However, some homeowners are hesitant about blocking their beautiful views with thick drapes or opaque blinds. A great option for homeowners to use that will allow them to see out their windows while also blocking heat from entering the home is window film. The best part? Many window films are designed for an easy install. Just measure the size of your window, cut the film, and stick it on to start your journey to save on utility bills.

Clean your air filters.

What’s one thing that could be standing between you and your ability to save on utility bills? Dirty air filters. Regardless of what kind of heating and cooling unit you have, cleaning the air filters on a regular basis is important, especially before the hot summer months. When filters get dirty, the heating and cooling system has to work harder and consume more energy to do its job. With clean filters, the system can cool your home more efficiently and help you save on utility bills.

Collect rainwater.

Are you living in an area that experiences heavy rainfall during summer? If so, consider using rain barrels this summer to collect rainwater and use it to water your garden. Rain barrels, typically made of plastic or wood, sit at the end of your gutter downspout and collect the rainwater as it flows out. When the storm is over, you’ll have a good amount of water that you can recycle on your garden during drier times. Using a rain barrel will help you cut down on your water use and therefore save on utility bills.

Add mulch to your garden.

Do you feel like you have to water your garden over and over to keep plants alive? Try laying down mulch throughout your garden. Mulch helps prevent evaporation so water will stay on the ground longer, giving your plants more time to absorb it. Now that your plants will be more hydrated, you won’t have to water them as frequently and will be able to save on utility bills.

Learn new recipes.

Many popular recipes require the use of an oven or stove, however these appliances can seriously heat up your home and cause you to crank down the thermostat to cool off. Before summer rolls around, think of meals you can make without these hot appliances, such as salads, sandwiches, or even recipes in a slow cooker, since these appliances don’t emit as much heat.

Remember, although these tips are for summer, they can be used year-round. It’s always a good time to reduce your energy consumption and save on utility bills!

Source: HomeSelfe

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How do I secure a mortgage as a self-employed buyer?

BY STEPHEN MORANIS, POSTMEDIA NEWS JUNE 6, 2016

It is best to sit down with a bank and/or mortgage broker to discuss the many options that are available for you as a self-employed individual.  Photograph by: Image Source , Getty Images

Today, there are so many individuals who are self-employed or are working in the underground economy that the conventional criteria in being approved for a home mortgage do not apply.

If you do not have a T4 confirmation of employment income, then shopping for a mortgage through the many self-employed programs is a very confusing and tricky process. A pre-approved mortgage presents you as a much more serious buyer to sellers and real estate agents, especially if you become involved in today’s commonplace bidding wars. If you want to win the battle, though, removing all conditions such as satisfactory financing is mandatory.

All mortgage pre-approvals are free and there is no obligation to use the lender who pre-approves you for financing. It is best to sit down with a bank and/or mortgage broker to discuss the many options that are available for you as a self-employed individual.

The growing segment of self-employed residential mortgage borrowers has come under much scrutiny over the last few years as the federal government tries to ensure there is not a credit collapse like the one in the U.S. in 2008 during a period of sub-prime mortgages with high debt to equity values.

All of the major Canadian banks have created innovative lending programs to meet the unique and specific needs of entrepreneurs and self-employed individuals. Major mortgage lenders are trying to streamline the mortgage approval process, which in many cases does not require specific detailed financial statements or income verification. In some cases you do not have to prove your actual income, but you will be required to have a higher down payment, generally in the 35 per cent range of equity to debt being borrowed.

Your personal credit profile must be strong for credit approval and your income must be reasonable for the nature and tenure of your business. There are programs where you can borrow up to 80 per cent of the purchase price or value of the property with no default insurance, or up to 95 per cent with default insurance. Minimum down payments require 10 per cent, of which 5 per cent must come from the borrower’s own resources. The remainder of the down payment may be gifted from an immediate family member.

In many cases, commission sales income is not eligible for self-employed insured guidelines. In these circumstances, lenders can loan up to 90 per cent for purchase financing and up to 80 per cent for refinancing. You must show a minimum history of 2 years of being self-employed.

Across the country, the maximum loan amounts vary for self-employed persons. For Greater Toronto, Vancouver and Calgary, it’s up to $750,000. For other locations, a maximum loan amount of $600,000 applies. Of course, there are many exceptions on a case-by-case basis and knowledgeable bank representatives and/or mortgage brokers can help you sift through the process.

Speak to a minimum of two lending institutions and/or mortgage brokers about being pre-approved under the self-employed mortgage programs. Mortgage brokers are an excellent source as they can help with damaged credit. And remember that features matter. These may range from good prepayment privileges with fair penalties, if at all, and good portability and refinance policies.

There’s no secret in finding the right plan -- comparison shopping wins every time.

Stephen Moranis, B.Comm., MBA, FRI, CMR has been active in the North American Real Estate Industry for more than 40 years. He is a former President of the Toronto Real Estate Board and a former Director of the Canadian Real Estate Association.

Do you have a real estate question or topic that you would like to know more about? 

New Buy vs. Rent Index Shows U.S. Housing Market Moving Deeper into Buy Territory

New Buy vs. Rent Index Shows U.S. Housing Market Moving Deeper into Buy Territory: The latest national index produced by Florida Atlantic University and Florida International University faculty indicates the United States housing market as a whole is moving deeper into buy territory, suggesting that, on average, residential housing markets around the country are sound.

Based on



    

Lending Standards are Tightening & Credit is Loosening

                     Mortgage Credit Availability Decreases in May

RISMEDIA, Saturday, June 04, 2016— Mortgage credit availability decreased in May according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae's AllRegs® Market Clarity® business information tool.

The MCAI decreased 0.8 percent to 121.4 in May.  A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.  The index was benchmarked to 100 in March 2012. Of the four component indices, the Jumbo MCAI saw the greatest tightening (down 1.3 percent) over the month followed by the Government MCAI (down 1.0 percent), the Conventional MCAI (down 0.8 percent), and the Conforming MCAI (down 0.3 percent).

"Credit availability decreased for the third consecutive month in May," says Lynn Fisher, MBA's Vice President of Research and Economics. "Gains in credit availability caused by the continued roll-out of Fannie Mae and Freddie Mac low down payment programs were offset by modest tightening among government loan programs that serve borrowers in high cost areas."

MBA now reports on five total measures of credit availability as part of the monthly MCAI release: the Total Mortgage Credit Availability Index, the Conventional Mortgage Credit Availability Index, the Government Mortgage Credit Availability Index, the Conforming Mortgage Credit Availability Index, and the Jumbo Mortgage Credit Availability Index, with historical data back to 2011.

Of the four component indices, the Jumbo MCAI saw the greatest tightening (down 1.3 percent) over the month followed by the Government MCAI (down 1.0 percent), the Conventional MCAI (down 0.8 percent), and the Conforming MCAI (down 0.3 percent).

For more information, visit www.mba.org. 

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Rent vs Buying - Now is a good time to buy!

When Is It A Good Time To Rent? Definitely NOT NOW!

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau recently released their first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”

The article also cited results from a recent Reis Inc. report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually. 

Where are rents headed?

Jonathan Smoke, Chief Economist at realtor.com recently warned that:

“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”  

Bottom Line

NAR’s Chief Economist, Lawrence Yun had this to say in the latest Existing Home Sales Report:

 "With rents steadily rising and average fixed rates well below 4 percent, qualified first-time buyers should be more active participants than what they are right now."

One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, meet with a local real estate professional who can help determine if you are able to today
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Helping your clients avoid problems as they prepare to list their house for sale.

Avoid Unapproved Renovation Problems

Unpermitted work on a home can stall sales years later. Here’s what your sellers should understand.

MAY 2016 | BY CAROLYN L. WEISS

You’re walking through your clients’ home, getting ready to list it for sale, when you see what looks like a makeshift bathroom in the basement. You ask your clients about it and, sure enough, they had a handyman install a sink and toilet down there 10 years ago. Did they ever have permits pulled? If they didn’t, that can come back to haunt them—and you—because it can grind the sale to a halt if a presale inspection is required by your locality or the sales contract requires the seller to provide a certificate of completion to show the work was done to code.

Each municipality establishes its own rules for handling unpermitted work. In my Westchester County, N.Y., market, most municipalities don’t require presale inspections, and sellers are allowed to opt out of a state seller disclosure form if they agree to knock $500 off the sale price, which most sellers do.

In other municipalities, though, like Dobbs Ferry, N.Y., some form of presale inspection by the municipality is mandatory, and these inspections can identify unpermitted work that the seller will need to bring up to code and have a certificate of completion issued before the sale can proceed.

Separate from what your municipality requires, the standard sales contract you use in your state might require the seller to provide a certificate of completion for any work done on the house. Of course, the parties are free to replace the provision with an “as-is” clause, which would allow the sale to go through whether unpermitted work had been identified or not. But that’s a negotiating matter between the buyer and seller.

It’s not your job, as a real estate professional, to inspect a property to determine if there’s unpermitted work. But if, in the course of working with a seller, you see something in the property that raises a red flag, talk with the sellers about it. If they confirm that work was done without the necessary permits, you can recommend that they take proper steps to get the work inspected and, if necessary, brought up to code.

Here are three points to keep in mind when helping your clients avoid problems as they prepare to list their house for sale.

Pay attention to renovations with red flags. Most unpermitted renovations are small scale. Contractors that work on large-scale renovations such as additions typically won’t do the work without pulling the proper permits. But other projects could have cut corners: a sink and toilet rather than a full bathroom in the basement or a window that looks new but doesn’t seal properly.

Ask questions. If something triggers a concern, ask the sellers about it. If they have unpermitted work, or if the work was done by the previous owner and they don’t know whether it was permitted or not, they should consider going to their local building department to see what work requires a permit. Municipalities vary greatly on this. Some require a permit only for major renovations, like a new bathroom. Others require a permit for something as small as adding an electrical outlet. If they discover work done before their time that should have been permitted, sellers should inquire with the city to see whether permits were ever pulled and a certificate of completion issued.

Take proper action. If sellers learn there’s unpermitted work, their best course of action is to make an appointment with a city building inspector, apply for new permits, and, if needed, have the work brought up to the latest code and a certificate of completion issued. One downside: Today’s generally tougher code requirements may make it more costly and cumbersome to have the project pass inspection. It’s always a better idea for home owners to get the proper approvals from a municipality at the time the work is done than to wait until they sell the house years later.

10 Things Smart Homeowners Should Know About Mold Dangers

10 Things Smart Homeowners Should Know About Mold Dangers

    

RISMEDIA, Thursday, May 26, 2016— Just the thought of living in a home with mold is enough to strike fear in the minds of most homeowners. Given the health risks and property damage that mold can cause, the experts at ServiceMaster Restore say it is important for homeowners to know how to identify mold on their property, learn where it thrives and understand the best ways to eliminate it from their homes.

Recently, the company is unveiled the results of its 2016 ServiceMaster Restore Franchisee Mold Remediation Survey, in which more than 250 trained and experienced franchise owners shared their expertise about this dangerous and costly issue that affects homes and businesses across the country.

"Mold isn't something most people think about until they experience it in their own home," says Peter Duncanson, director of system development at ServiceMaster Restore and chairman of the board of directors for The Institute of Inspection, Cleaning and Restoration Certification (IICRC). "It's important to beat mold at its own game -- this means taking steps to prevent mold from growing or calling in an expert right away to stop mold in its tracks once it begins to grow in your home."

According to the survey, many people believe they can kill mold on their own using powerful over-the-counter cleaners such as bleach; however, Duncanson says this is not true.

"Many retail products will change how mold looks, and you might think it's gone because you don't see it," Duncanson says. "But, the only way to get rid of mold completely and safely -- and to be sure you're protecting your property and health from additional risk -- is to have trained professionals physically remove it from the affected area."

According to the EPA, potential health effects associated with mold include allergic reactions, asthma and other respiratory complaints, as well as irritation to the eyes, skin, nose, throat and lungs. By living with mold, homeowners are exposed to these potential health risks.

Looking for Mold in All the Right Places

• More than half of ServiceMaster Restore survey respondents said that basements (64 percent) and bathrooms (58 percent) are the rooms where mold is most likely to be present.
• Common locations vary by region, say respondents, who also noted that in the Midwest and Northeast, mold is found most often in basements, whereas in the South and West, it is found most commonly in bathrooms.
• Nearly two-fifths (39 percent) say running the exhaust fan during showers is the most effective way to prevent mold in the bathroom.
• Nearly three-quarters (73 percent) say properly maintaining ventilation throughout the home is paramount in preventing mold growth. 

Top 10 Must-Know Mold Tips

To help homeowners who are facing mold damage or are eager to avoid it, Duncanson and the team of experts at ServiceMaster Restore have shared the top 10 things homeowners should do (or not do) in the fight against mold:

1. The best defenses against mold are to take away its food source, ensure adequate airflow and reduce moisture in the air.
2. Don't rely on retail products, such as bleaches that promise to kill mold, especially on porous surfaces.
3. Vacuum vents every month to remove dust, a primary food source for mold. If you have central heating and air, remember to clean the baseboards, floorboards and bathroom vents, as well. 
4. If mold is visible, don't use a consumer vacuum to remove it. This includes wet/dry vacuums, which can actually make a mold issue even worse. 
5. If you see mold in an area, do not use a fan to dry things out. Call a professional, as you will likely spread mold spores and create the potential for even more damage.
6. To reduce moisture and control ventilation in the bathroom, run an exhaust fan during a shower or open the door and windows in the bathroom after using it. 
7. Consider investing in small household de-humidifiers to reduce moisture. If you have a large home or business, you may need more than one.
8. If you have terrariums and plants, be aware that these can be food sources for mold.
9. Don't ignore the problem. Signs of mold could indicate the presence of larger issues that may cause health risks.
10. If you suspect mold, call a trained professional, like those from ServiceMaster Restore, with the expertise and resources to restore your home to normal and prevent costlier damage. 

For more information, visit ServiceMasterRestore.com.

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