Soft credit inquiries vs Hard credit inquiries

'Soft' Credit Checks: Do They Hurt Your Credit Score?

RISMEDIA, Tuesday, August 08, 2017— (TNS)—Lenders use your credit score to determine whether you are eligible for a loan and to decide what terms they are prepared to offer. Credit bureaus keep track of when companies check your score, regardless of the outcome, and checks designated as "hard inquiries" may lower your score.

Understanding what constitutes a hard check versus a "soft" check makes it easier to plan how you intend to apply for new credit lines, thereby minimizing the risk of harming your credit score.

Soft Credit Checks Are Listed on Your Credit Report
A soft credit check, otherwise known as a soft inquiry or soft pull, is any kind of credit report check that doesn't affect your credit score. Soft inquiries are background checks rather than checks occurring as a result of new loan applications; in some cases they happen without your knowledge or consent.

Common soft inquiries include:

• When you check your own credit report
• When a potential employer checks your credit history to determine your reliability and financial status
• When a financial institute you patronize checks your credit
• When credit card issuers check your credit to send you a preapproved offer 

You can see all of the soft inquiries on your credit report, which lists each check along with the name of the organization that made the check.

Soft Credit Inquiries vs. Hard Credit Inquiries
Unlike soft inquiries, hard inquiries may have an impact on your credit score. Prospective lenders make hard checks when they are making a lending decision, with common examples including:

• Applying for a new credit card
• Taking out a loan for a new car
• Applying for a mortgage 

Hard inquiries stay on your credit report for two years, so you should always think carefully before making any kind of loan application as it can lower your credit score.

Be Smart About Applying for Loans
A good credit score is an essential part of getting approval for a new line of credit, and it also improves your chances of getting the best rates. It's important to know what kind of activity has the potential to lower your score.

Many companies check your credit history, but only hard checks made to verify your eligibility for a new line of credit have a direct impact on your credit score. To maintain your credit score, apply only for loans when you really need them. If you are shopping for the best rates, make all of your applications within a short time frame.

©2017 Bankrate.com
Distributed by Tribune Content Agency, LLC

5 Deck Makeover Projects Under $300

By: John Riha  National Assn of Realtors

Published: July 2, 2012

Want to upgrade your deck but watching your budget? Here are 5 easy deck makeover ideas, many well under $300.

If you'd rather hide inside rather than hang out on your tired-looking deck, you need an upgrade.

Here are five ways to transform it back to its fun self.

1. Add Solar Lighting

If you’d like your wood deck to come alive when the sun goes down, add solar lighting. Solar lights don’t need an on/off switch -- they light up when it gets dark, then fade away 4-6 hours later.

You won’t have to plug them in or wire anything, either. Their solar-charged batteries are renewed every day, and the lights are built to withstand all kinds of weather.

Types and cost:

• Paper lanterns (made from synthetic, weatherproof nylon; $20-$30) are made for hanging and come in all sorts of fun shapes, sizes, and colors.
• Carriage lights can be fixed on top of a pillar or railing newel post. $45-$150.
• Solar illuminated replicas of old-fashioned mason jars can be set on any flat surface, about $35.
• Rope lights have small LED bulbs inside a flexible cord. A 25-foot-long rope with solar charger and stand is $25.

What else: Suspend lanterns from overhead trellises, railings, and nearby trees, where they’ll shed a soft, colorful glow. Wind rope lights around rafters and railings.

2. Install a Stone Landing at the Foot of Your Deck Stairs

Dress up the transition from your deck to your yard with a little hardscaping -- a stone landing at the bottom of your deck stairs. Stones are a natural compliment to wood decks, and they’ll help prevent mud from forming where there’s heavy foot traffic.

Cost: Flagstone is priced by the pound; you’ll spend $60-$100 for enough stone for a 3-foot-by-4-foot landing.

How-to: Techniques for installing a landing are the same as putting in a patio, although you’ll have to temporarily support your existing stairway while you work around — and under — it.

What else: You should be able to add a landing in less than a day. It’ll get done faster if you hire a pro, but it’ll cost you another $150-$200 in labor.

3. Put Up a Privacy Screen

Whether you’re relaxing alone au naturel or entertaining friends, a little home privacy is always welcome. You can add some vertical supports and fill in a variety of cool screening materials that are as nice for your neighbors to look at as they are for you.

Types and costs:

• Bamboo fencing comes in a 6-foot-by-16-foot roll for $20-$25.
• Lattice panels are either wood or plastic, $15-$30 for a 4-foot-by-8-foot panel.
• Grow climbing plants on a trellis ($20-$100) to create a living privacy screen. Plant climbing vines in tall containers ($40-$120) to raise them above the deck surface and give them a head start filling in your screen.
• Outdoor fabric resists moisture and fading; $12-$120 per yard. You’ll pay another $20 to have a seamstress cut and hem a 3-foot-by-5-foot panel.

How-to: Your privacy screen should integrate with your deck; make the framework using the same basic materials as your deck railing and structure.

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Add some flash by building a frame with 2-by-2- or 2-by-4-inch uprights spaced 1 foot apart, then weaving aluminum flashing between the uprights.

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What else: Make sure to position your privacy screen where you’ll get maximum benefit. Sit on your deck and check your lines of sight.

4. Paint a Faux Floor Rug on Your Decking

Punch up a boring old deck with a faux rug. This is a fairly low-cost project with a big wow factor, and one you can share making with your (well-behaved) kids. It works best on a newly cleaned deck (see below).

Cost: Most of your cost will be deck stain or paint in various colors. Because you won’t be using that much stain per color, you can buy quarts. Figure $15-$20 per quart.

How-to: Figure out a size, sketch out the design on your decking, and then all you have to do is paint or stain between the lines. You can use painter’s tape as a guide, but a little leakage is likely on a wood decking surface.

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What else: Keep a few basic cleaning supplies on hand for any drips or spills. After the stain is dry, coat the entire deck with a clear deck sealer.

 5. Wash and Refinish Your Wood Decking

The ultimate deck makeover is none other than a good cleaning. Applying a coat of deck sealant afterward ensures your wood decking looks great and will last for decades.

Cost: There are many brands of deck cleaning and brightening solutions. Some require the deck to be wet; others need the decking to be dry. Some are harmful to plants and you’ll have to use plastic sheeting to protect your landscaping. Consult the instructions carefully.

You’ll pay $15-$25 per gallon, enough to clean 300 sq. ft. of decking.

How-to: Scrubbing with a good cleaning solution and rinsing with a garden hose is more foolproof than scouring your decking with a power washer that may damage the surface of the wood. 

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What else: After you deck is cleaned, apply a coat of deck stain or clear finish. The sealer wards off dirt, wear, and UV rays, and helps prevent deck splinters. A gallon covers 250-350 sq. ft., $20-$35/gallon.

5 Things That REALLY Will Put a Serious Dent in Your Energy Bills

By: Christina Hoffmann   National Assn of Realtors

Published: August 17, 2016

Stop sending so much money to your utility company with these simple strategies.

Your Mexican beach vacation was great, but, man, those margaritas sure can put on the pounds. It’s been two months, and you’re still carrying around an extra tenner — despite a new running routine and a lot of #&*&@$ kale. So why isn’t your weight dropping?

It’s like that with energy bills, too.  Eighty-nine percent of us believe we’re doing the right things to lower energy costs, and almost half of us think our homes already are energy efficient. Yet, 59% of us say our bills are going up, not down, despite our efforts to economize. 

Suzanne Shelton, CEO of the Shelton Group, a marketing agency that specializes in energy efficiency and that did this research, says we’re rationalizing: “I bought these [LEDs] so now I can leave the lights on and not pay more. I ate the salad, so I can have the chocolate cake.” Denial much?

Her research also shows consumers, on average, made fewer than three energy-efficient improvements in 2012 compared with almost five in 2010. It looks like we’re giving in to higher utility bills. But it doesn’t have to be that way.

You just need to know what improvements really will make the biggest difference to lower your bills. There are five, and the good news is that they’re really (seriously) cheap. You can go straight to them here, but there’s also another thing you can do that doesn’t cost a dime — and will drop your costs:

Be Mindful About Your Relationship With Energy

Think about it. Energy is the only product we buy on a daily basis without knowing how much it costs until a month later, says Cliff Majersik, executive director of the Institute for Market Transformation, a research and policy-making nonprofit focused on improving buildings’ energy efficiency. 

With other services you get a choice of whether to buy based on price. With energy you don’t get that choice — unless you intentionally decide not to buy. You can take control by making yourself aware that you’re spending money on something you don’t need each time you leave home with the AC on high, lights and ceiling fans on, and your computer wide awake.

Related: Did You Know You Should Never Leave a Ceiling Fan on When You Leave a Room? 

That mindfulness is important because your relationship with energy is getting more intense. You (and practically every other person on the planet) are plugging in more and more. Used to be that heating and cooling were the biggest energy hogs, but now appliances, electronics, water heating, and lighting together have that dubious honor, according to Lawrence Berkeley National Labs, based on data from U.S. Energy Information Administration (EIA), the research arm of the Department of Energy (DOE).

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Being mindful means it’s also time to banish four assumptions that are sabotaging your energy-efficiency efforts:

1. Newer homes (less than 30 years old) are already energy efficient because they were built to code. Don’t bank on it. Building codes change pretty regularly, so even newer homes benefit from improvements, says Lee Ann Head, vice president of research and insights with the Shelton Group.

2. Utilities are out to get us: They’ll jack up prices no matter what we do. It might feel cathartic to blame them (Shelton’s research shows consumers blame utilities above oil companies and the government), but to get any rate changes, utilities must make a formal case to public utility commissions.

3. Energy improvements should pay for themselves. Nice wish, but it doesn’t work that way. When the Shelton Group asked consumers what they would expect to recoup if they invested $4,000 in energy-efficient home improvements, they said about 75% to 80%.

Unless you invest in some kind of renewable energy source like geothermal and solar, you won’t see that kind of savings. (Sorry.) Even if you do all the right things, the most you should expect is a 20% to 30% reduction annually, says Head, which is still significant over the long term. 

What does 30% translate into? $618 in savings per year or $52 per month, based on the average household energy spend of $2,060 per year, according to Lawrence Berkeley and EIA.

4. Expensive improvements will have the biggest impact. That’s why homeowners often choose pricey projects like replacing windows, which should probably be fifth or sixth on the list of energy-efficient improvements, Shelton says.

There’s nothing wrong with investing in new windows. They feel sturdier; look pretty; can increase the value of your home; feel safer than old, crooked windows; and, yes, offer energy savings you can feel (no more draft).

But new windows are the wrong choice if your only reason for the project was reducing energy costs. You could replace double-pane windows with new efficient ones for about $9,000 to $12,000 and save $27 to $111 a year on your energy bill, according to EnergyStar. (The savings are higher if you replace single-pane windows.)  Or you could spend around $1,000 for new insulation, caulking, and sealing, and save 11% on your energy bill, or $227.

The 5 Things That Really Work to Cut Energy Costs

1. Caulk and seal air leaks. Buy a few cans of Great Stuff and knock yourself out over a weekend to seal around:

• Plumbing lines
• Electric wires
• Recessed lighting
• Windows
• Crawlspaces
• Attics

Savings: Up to $227 a year -- even more if you add or upgrade your insulation.

Related: Lots of Homes Also Have This HUGE Air Leak 

2. Hire a pro to seal ductwork and give your HVAC a tune-up. Leaky ducts are a common energy-waster. 

Savings: Up to $412 a year.

3. Program your thermostat. Shelton says 40% of consumers in her survey admit they don’t program their thermostat for energy savings. She thinks it’s even higher.

Savings: Up to $180 a year.

4. Replace all your light bulbs with LEDs. They’re coming down in price, making them even more cost effective. 

Savings: $75 a year or more by replacing your five most frequently used bulbs with Energy Star-rated models.

Related: LED Bulbs Are Confusing, But Here’s a Guide to Help

5. Reduce the temperature on your water heater. Set your tank heater to 120 degrees — not the 140 degrees most are set to out of the box. Also wrap an older water heater and the hot water pipes in insulating material to save on heat loss.

Savings: $12 to $30 a year for each 10-degree reduction in temp.

NOTE: Resist the urge to total these five numbers for annual savings. The estimated savings for each product or activity can’t be summed because of “interactive effects,” says DOE. If you first replace your central AC with a more efficient one, saving, say, 15% on energy consumption, and then seal ducts, you wouldn’t save as much total energy on duct sealing as you would have if you had first sealed them. There’s just less energy to save at that point.

Bonus Tip for More Savings

Your utility may have funds available to help pay for energy improvement. Contact them directly, or visit DSIRE, a database of federal, state, local, and utility rebates searchable by state. Energy Star has a discount and rebate finder, too.

Understanding Closing Costs - Avoid Surprises at the Settlement Table

JULY 7, 2017

Understanding Closing Costs

By Michael Maddiex, President, Long & Foster Settlement Services.

Before buying or selling a home, it is important to know and understand all of the costs that are required at closing. Many settlement companies have gone to a flat fee for all purchase and refinance clients. This fee varies per company and geographical location, but here is an idea of the key services it may include.

Document Processing: The settlement company coordinates all elements of the transaction from the receipt of sales contract to closing. During this process, they order a title exam, resolve any title issues, coordinate the seller payoff, prepare the title commitment, schedule the closing with the lender, prepare the deed with a local attorney, obtain lender’s documents and prepare the final Closing Disclosure (if applicable) and ALTA Settlement Statement.

Title Exam: A detailed search or abstract of the local title records is conducted to determine the “chain of title” and recorded liens, which are examined and reviewed to determine insurability. During the title exam, a settlement company helps resolve any issues or inconsistencies before the property can be sold.

Title Binder: While this document is not the title insurance policy, it is an issued commitment to provide future title insurance on the property you are purchasing. It states the coverage that is going to be provided, and it lists any exceptions and requirements to be met prior to issuing a title policy.

While title insurance is not included in the closing costs, it is an essential piece of the settlement process. You can learn more about protecting yourself and your home here.

Closing: The attorney or licensed settlement agent conducts the closing for the buyer and seller. During closing, they explain all the documents and answer any questions you may have. They also notarize all signatures – a requirement, ensuring all settlement documents are valid.

Mailing: All documents, including the deed and the deed of trust executed at settlement, are mailed to the county courthouse for filing with the land records, and executed mortgage documents have to be sent back to the lender.

Document Archiving: Many settlement companies archive the transaction documents by electronically warehousing them.

If you have questions about closing costs, feel free to contact one of our title partners.

Questions to Ask Before Making An Offer On A Home

JUNE 19, 2017

By Michelle D. Formica, Manager, Marketing Services, The Long & Foster Companies.

If you’re in the market for a new home, there are several important questions you should ask before making an offer. In this two-part blog, we’ll share insights from a few of our agents and managers on key items to consider when buying a home, including several questions you may not otherwise think of.

What is the average cost of monthly utilities? According to Katherine Davis, manager of Annapolis Fine Homes, a Long & Foster | Christie’s office in Annapolis, Maryland, it is helpful to know the average cost of monthly utilities on the home you are considering purchasing. Make sure to calculate these expenses into your monthly budget.

How much money do I need to buy a home and when do I need it? “Initial deposits are required at the time of contract offer, an inspection fee is due at the time of service, an appraisal fee is collected by the lender at the time the buyer applies for a loan and closing costs are due at settlement,” said Davis. Knowing these amounts and due dates will help ensure a smooth process from contract to close.

Is the property a part of a community with a condominium association or a homeowners association (HOA)? If you purchase a property in a development with an HOA or condo association, you are required to join the association and pay its monthly or annual fees, explained Athena Petersen, a manager of Long & Foster’s Reston, Virginia, office. Before you buy, make sure to find out what the fees cover and when the payments are due, Davis recommends.

How much earnest money should I put down? Todd Delahanty, an agent in Long & Foster’s Arlington, Virginia, office, advised that the more earnest money you put down, the better, but 1-3 percent of the purchase price is common. Selina Delahanty, also an agent in Long & Foster’s Arlington office, further explained that earnest money, unlike a security deposit, is credited at closing, so you’ll still benefit from putting down that amount.

How much do I want this home? Todd and Selina Delahanty have all their potential buyers ask themselves this question before making an offer on a home: “Do you want the home or do you have to have it?” This is essential information for your agent to know in order to best recommend a competitive offer price and negotiation strategy.

Beyond price, what offer terms will the seller most favor? It is a seller’s market across the Mid-Atlantic, forcing buyers to compete against multiple offers. “To make your offer stand out in a competitive market, it is important to better understand what the seller wants – not necessarily in regards to price, but frequently about terms,” explained Todd Delahanty. For example, the seller might want to rent back the property from you or desire a specific closing date.

Flood Insurance - Critical to avoid relying on disaster relief

Flood Insurance Critical for a Vibrant Housing Market

RISMEDIA, Tuesday, May 02, 2017— Each year, the federal government spends billions of dollars on disaster relief to flood victims—all at taxpayer expense. While floods claim more lives and property than any other natural disaster, it's important to note that flood disasters have been declared in every state in the past five years alone. Floods are not only coastal issues, either—they can occur along rivers, lakes and creeks. In fact, 25 percent of flood losses come from outside "flood zones." If more properties were insured for flood damage, fewer owners would turn to taxpayers for disaster relief after the next major flood.

The National Flood Insurance Program (NFIP), which is up for renewal in 2017, provides an insurance market alternative to taxpayer-funded disaster relief. NFIP flood insurance is purchased by homeowners through private insurance companies, but is administered by the Federal Emergency Management Agency (FEMA), which sets rates and coverage terms. The NFIP averts billions of dollars in property damage each year because communities must adopt and enforce flood building codes and standards as a condition for joining the NFIP. Flood insurance is required for a federally related mortgage where there's a 26 percent chance of flooding over 30 years (i.e., a 1 percent annual risk).

From 1986-2005, the NFIP was self-sufficient, bringing in more premiums than it paid out. Then Hurricane Katrina struck, and the program has had to borrow $25 billion from taxpayers in order to cover several catastrophic loss years in a row. The program wasn't designed for losses of this magnitude and is now making minimum interest payments of $400 million per year at an average of 50 basis points. Terminating the program will not wipe away the debt; therefore, a major focus of reauthorization will involve pushing as much risk to the private market as possible.

When the NFIP was created, there was no private market, but now, several private flood insurance companies are writing first-dollar coverage in higher-risk flood zones. These private companies will charge rates that better align with the individual property risk, while the NFIP charges national average rates that are too high for some and too low for others. On the other hand, private companies will not be able to insure all 5 million NFIP properties, so they'll be more selective, which may lead to raising rates or dropping coverage after floods. Also, the NFIP considers this a "coverage lapse," so properties won't be eligible for a lower rate if they leave the program and a private market policy doesn't work out.

When REALTORS® arrive in D.C. for NAR's Legislative Meetings & Trade Expo, they'll encourage federal lawmakers to renew and strengthen the long-term viability of the federal flood insurance program, as well as maintain funding to update and improve the accuracy of flood maps. The NFIP program must be reauthorized every five years, and NAR urges Congress to reauthorize the program before it expires at the end of September 2017. REALTORS® also support the creation of a vibrant private flood insurance market to provide a variety of products to property owners looking to meet their individual flood insurance needs. NAR supports the Flood Insurance Market Parity and Modernization Act, which unanimously passed the House of Representatives but was not considered by the Senate, as a solid first step in the development of private market options for property owners.

Sarah Young is the director of Real Estate Services for the National Association of REALTORS®.
 
This column is brought to you by the NAR Real Estate Services group.

For more information, please visit www.nar.realtor.

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Take the Plunge and Buy a Beach Home Using Social Media

How Social Media Can Help You Buy a Home

By Maria Patterson

Home sales are ticking upward with the National Association of REALTORS®’ Pending Home Sales Index now 1.8 percent higher than this time last year. As home prices and interest rates continue to rise, now is the time to seriously consider taking the plunge into buying a home.

But many would-be homeowners are intimidated by the process of buying a home and remain on the sidelines, to their own disadvantage. How can you streamline this often overwhelming process? With the help of social media.

Utilized these days for way more than sharing personal updates and photos, social media can actually play a key role in making big decisions, like buying a home. Use social media in the following ways before and during your home search:

1. Connect with agents on Facebook. Just about every real estate agent worth his or her salt has a Facebook business page. Search for agents in the towns you’re considering and send a friend request or private message. Start following their feed and you’ll get a good idea of their overall real estate savvy, in addition to a sneak peek at their new listings. You’ll also get a feel for who they are as people, which is important, because good chemistry with your agent leads to a better outcome in terms of finding your dream home.

2. Check out LinkedIn profiles. Once you’ve narrowed down the field of potential agents you might want to work with, look them up on LinkedIn. Here, you’ll be able to learn about the company they currently work for, as well as their career history. You’ll see what networks they’re a part of (networking is key to helping you find the right home), what awards or achievements they’ve received, what skills they excel in, and recommendations from others.

3. Use Twitter for housing and interest rate updates. Twitter is a great way to get quick news updates on what matters most to you right now: interest rates, home values, market trends, and more. Follow a few credible financial and real estate news organizations and become an educated home shopper.

4. Put hashtags to work. Use hashtag searches on Instagram, including the names of neighborhoods and towns you’re interested in. This will give you a view of the communities you’re considering, the restaurants, the culture, the overall lifestyle, and more. If you want to see some actual listings in the towns you’re interested in, add the term ‘real estate’ into your search.

5. Tour homes and towns on YouTube. Nothing gives you a better view of a town or listing than a video. Lots of agents post listing videos, so be sure to check them out.

6. Get organized with Pinterest. Pinterest can serve as your digital scrapbook of the neighborhoods, homes, interior designs and home features you’re interested in. Your Pinterest page can evolve further once you’ve purchased your home, serving as a gateway to décor and home improvement ideas.

When it comes to buying a home, social media will not only help you get informed, but it will also go a long way toward helping you make the right connections. So start friending, following and posting and find the home that’s right for you faster.

Contact our office today for more tips on using social media to help you buy a home.

Copyright© 2017 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission.