Homebuyer Do’s and Don’ts When Getting a Loan

  • DO continue to make payments on time for current mortgages, cars, credit cards, etc..
  • DO paper trail, document, and explain any large or unusual deposits or withdrawals into accounts such as checking, savings, stock, etc.
  • DO keep pay stubs, bank statements, tax forms, etc., in case the lender needs to update the documentation prior to closing.
  • DO ask questions if something is unclear about the loan program, fees, and/or loan conditions.
  • DO let the loan officer or mortgage broker know if anything changes, for example, your employment, income, assets, credit history, etc.
  • DO document that the earnest money deposit has cleared your account; obtain a copy of the cancelled check and/or statement that reflects the funds have cleared.
  • DO lock-in the interest rate.  These are ordinarily thirty to sixty days and definitely worth it if rates are trending upward.
  • DO have homeowner’s insurance agent information available and provide updated documentation (pay stubs, bank statements, etc.) in a timely manner so as not to delay the closing.
  • DO NOT increase credit card balances and/or loan balances.
  • DO NOT apply for additional or new credit or put balances on a paid credit card.
  • DO NOT ignore late payment and/or collection notices that are received during the loan process.
  • DO NOT purchase anything that is “same as cash”, as it will show on the credit report as a new debt.
  • DO NOT buy furniture, a new car or appliances on credit until after closing.  This is the most common “don’t” action that has occurred during my sales.
  • DO NOT lend money to family members or friends if the money is needed for closing.
  • DO NOT store money at home; place it in a bank account so it can be documented as savings throughout the loan process and can qualify as assets on hand.
  • DO NOT have overdrafts on a checking account.
  • DO NOT quit or change jobs during the loan process.

 

 

The Mortgage Challenge

MortgageChallenge

 

De-clutter Your Home

Consider this list of creative ways to de-clutter your home:

1. Give yourself 5 solid minutes: Put at least twenty-five items away in five minutes.  If the item does not have a home, or is no longer needed, place it in a donation box.  2. Give away one item each day. This is manageable de-cluttering, simply done one item at a time.  3.  Fill one trash bag: This is an easy way to process excess papers and packaging that is no longer necessary.  When the bag is full, you are done with that task.   4.  Try the Closet Hanger Experiment: To identify wardrobe pieces to clear out, hang all your clothes with the hangers in the reverse direction.  After you wear an item, return it to the closet with the hanger facing the correct direction.  After six months, you will have a clear picture of which clothes you can easily discard.   5.  Take the 12-12-12 Challenge: A simple task of locating twelve items to throw away, twelve items to donate, and twelve items to be returned to their proper home can be a really fun and exciting way to quickly organize thirty-six things in your house. You can select a smaller number for children to process.  6. The Four-Box Method: As you set out to de-clutter an area, set up four boxes:  trash, give away, keep, and relocate.  Each item in every room is placed into one of the four categories.  No item is passed over; each is considered individually.  Some projects may take an hour and others may take days or weeks but the technique and principles remain the same.  No matter what you choose to help you get started – whether it be one of these six or one of countless others – the goal is to take your first step with excitement behind it.  There is a beautiful world of freedom hiding behind that clutter.

Taking Care of an Empty House

Often we have listings of homes for sale or lease that are vacant for a few months.  Sitting vacant is probably one of the worst things that can happen to a house.  I make sure I or the owner visit empty listings at least once a week.  Here are some things to be sure to check.

Run the water: Every time I show the home or am checking the home, I run the water in the bathrooms, kitchen, laundry room, etc. and flush all the toilets.  If this is not done sewer gases will accumulate in the drains and when someone occupies the house and starts using the shower or toilet, a very foul odor will permeate throughout the house.

Run the garbage disposal: Some garbage disposals tend to freeze up when not used; run the disposal when you turn on the kitchen faucet.

Toilet lids: Another thing to be aware of is that if the lids on the toilets are closed, mildew accumulates in the toilet bowls and is unsightly for a prospective buyer or lessee.  Put the seats down but leave the lids up is my advice.

Air out the house: Open windows and doors periodically to get rid of that vacant house smell.

Check the smoke detectors: If you hear a chirping noise it is probably one of the smoke detectors needing new batteries; this is an aggravation for people viewing the house as well as being a possible breach of safety.

Be sure to lock all doors: One of my worst fears is that someone will move into a vacant home; it can take years to get them out.  Plus, think of how scary it would be to enter a house and find someone there.

Check the yard: Sometimes, the sprinklers get out of whack and some parts of the yard are not getting any water.  This leaves dead grass areas that are unsightly.

Check the gutters: Take a look at the rain gutters to make sure they are not full of leaves and other debris.  If the gutters are full and there is a rain storm, water will flow over to the edge of the roof and can cause a lot of damage.

Check around the front door: Remove any free newspapers, magazines or door hangers that have been delivered since your last visit.

Check the lights: Most showings are during the day, but some are after dark, and it can be pretty creepy for the agents and their clients if there are some lights that do not operate.  Usually, a light bulb just needs replacing.

 

 

Taking care of your empty house will likely bring a higher price in a shorter time.

 

Home Is Never Far Away

The majority of renters who plan to buy a home soon don’t expect to move far when they do. More than half will stay in the same county, if not the same neighborhood.


Interesting 90275 ZIP Code Facts

The 90275 zip code is the City of Rancho Palos Verdes.  There are 15,633 households of which 76% are owner occupied; 66% are married; 39% have children.   The median home sales price is $845,000.  The median age of the inhabitants of this zip code is 32.37 years; 33% have bachelor degrees and 23% have graduate degrees.  82% are white collar workers, mostly in service industries and most commute by car thirty-one minutes to their places of work.

This information was obtained from the Realist tax portion of our Multiple Listing Service and though believed to be accurate, is not guaranteed.