Photo Friday - Be Not Afraid of Wallpaper!

When I am working with buyers, I try to remind them that they need to keep an open mind with the houses we see.  Look at the bones of the house, think about the neighborhood, the space, the location.  If you are willing to put some work into the cosmetics of a house, you can find a diamond in the rough.  

Sometimes, you find a house where it is hard to see past the decor, frequently from another decade of style.  

This is my basement, by the way.  The couch did not come with the house.  

(Or there is a ghostly looking kid in the picture)

Or maybe you can't visualize how to use a space.  

Or in far, far too many cases, you find this. 

In my market, the golden age of wallpaper was alive and well not that long ago, and frankly, I am a little surprised at how many people are still living with the paper they put up in the 70's.  Now, there is a chance wallpaper is making a comeback.  I am not a decorator by profession.  I had young clients the other day telling me about plans to put some up in their new house.  I know there are still shelves of wallpaper books at the local paint store, and I myself have even walked into a house and said, "This isn't bad, I could live with this".  

In my own house though, the wallpaper has become the enemy.  When we bought our house, every wall, including the basement, was covered in wallpaper.  It was on the ceiling of one of the bathrooms.  It has taken us just over a year and a half to get through 3 bedrooms, two bathrooms, the family room and the dining room.  Some of those rooms were easy, some were hard.  The last one required an electric sander to get the remainder off.  I feel like I am becoming a wallpaper removal expert.  Every room in our house has required slightly different methods to get it off, but the results have been so worth it.

Sadly, I can't tell you that all of the above rooms have been saved.  But, since I have before and after photos of my own house, I thought I could share a couple of our DIY projects, to show you that there really is life after wallpaper.

Dining Room Before

And After

Kid's bathroom Before

Kids Bathroom After

My daughter's room - yes, that is orange shag carpet

And After.  

My point?  People frequently ask me why we ended up with our house.  We were lucky, and we were smart.  We knew there was potential, knew that there was life after wallpaper, and one room at a time we are conquering it.  A buyer with an open mind is going to find that diamond in the rough, if they are willing to look beyond what is there, to what could be.

Happy House Hunting, and happy remodeling!  I have wallpaper removal tips if tips if you need them (short version - get the steamer!), and would be happy to help you find the home of your dreams!

Sadly, there was only one room in our house where the paper was so bad that it was peeling itself. . .

No Credit? Yes, that is a problem!

If you are a first time home buyer, you probably have a lot of questions.  I have buyers who also come to me with many questions because it has been so long since they purchased their first home, that they don't remember the process!

One of the first hurdles to buying a house is typically your credit score.  It's been awhile since I have touched on this, so a quick review of credit!

Your credit score is basically a snapshot of your financial stability.  Do you have steady income and pay your bills on time?  Chances are, your credit is okay.  Have you had bills go into collections, or have delinquent accounts?  That will negatively impact your credit.  But what exactly is in a credit report?  

Let me break it down.

Your Personal Information - Your credit report will contain your full name, your social security number, current and past addresses, the name of your spouse, etc.  It is very important to verify this information!  Are you by any chance a Junior, the III, or Senior with a parent or child of the same name?  It is doubly important as this information can frequently get mixed up between generations.

Your Current Accounts -Your mortgage and car payments, credit card payments, etc. that you are currently receiving bills on, are considered your current accounts.  They will either be in good standing or delinquent - check to make sure the information is accurate.

Your Closed Accounts - Remember that card you signed up for in college to get the free T-Shirt?  Or the card you used to collect airline miles on and then stopped using after your round trip tickets were used?  Those closed accounts give a picture of your past history, stability, and how reliably you made those payments.

Negative Information - If you have had a bankruptcy, court judgement or past due amounts reported to the credit bureau, those will show up on your report.  These items may negatively impact your credit, so again, check for accuracy.

Credit Inquiries - If you are checking your own credit, that is a soft inquiry and won't affect your credit score.  If you have multiple credit inquiries by other sources (car loans, etc.) this could be a red flag.  Typically, if you are shopping for a home mortgage and check with several lenders in a short amount of time this is forgiven - they assume you are looking for the best terms.

Lack of Credit - This isn't so much something ON your report as something NOT on your report.  I have had several younger buyers that do not have established credit.  That sounds bad, but in the real world it is good.  It means that they are paying cash for things, and have no credit cards in their names.  The problem is that in order for a bank to consider you a good candidate for debt repayment, they need to see a history of you making payments.  My best advice is to open a credit card, use if for gas only, or something similar, and pay it every month.  This gives you a start to having positive credit, and to showing a lender that you are ready for homeownership!

I hope this helps!

 

 

Where Prices are Headed Over the Next Five Years

Frequently, you will see headlines in the news about "Prices rise this week", "Interest Rates are going down", and then the next day, the headlines switch.  "Prices are going down", "Interest Rates are up".  "It's a buyer's market", "It's a seller's market". . . .you get the point, it is confusing and contradictory!

This is why you want to see a report like the one I am posting below.  Every quarter, an organization called Pulsenomics surveys a panel of over one hundred economists, real estate experts and investment and market strategists about where they think prices are going.  They average those prices and come up with the results in a Home Price Expectation Survey.

Their latest report just came out, and here is where the experts think that prices are heading.

According to the experts. . .

• Home values will appreciate by 4.5% in 2014. 
• The average annual appreciation will be 3.94% over the next 5 years 
• The cumulative appreciation will be 19.7% by 2018. 

Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of almost 11% by 2018.

Listen to the experts! The market is improving, and confidence in the market it much higher.

Know someone who is thinking of selling, or looking to buy? Send them along! Spring is just starting to show itself after a very long and snowy winter here in Northeast Ohio. Hopefully you are enjoying the sunshine today!

Money Monday: 5 Things You Probably Don’t Know About VA Loans

I had my first clients buy a home with a VA loan in December.  VA loans are obviously not for everyone, but there are many misconceptions about these loans that happen with not only the general public, but also with industry professionals.

I found an article on the KCM blog that nicely summed up some of the information that led to the most misconceptions.  So, if you might qualify for a VA loan or know someone who does, read up!

5 Common Misconceptions about VA Loans

Misconception Number One:  "You can only use the benefit once."

Not so!  Veterans and  Active Duty military can use their benefits over and over.  There is a limit to the borrower's entitlement, or what the VA will guarantee.  Full VA entitlement If you go over that limit, you may need to make a downpayment, but there is no limit to how many times you can use this benefit.  

Misconception Number Two:  "VA loan benefits expire if they are not used."

For participants that are eligible, your mortgage benefits never expire.  If people think this, they are generally confusing it with the Montgomery GI bill, which helps with education, but only for 10 years.  

Misconception Number Three:  "A borrower can only have one VA loan at a time"

You are allowed to have two or more homes at the same time as long as the total combined amount does not exceed your maximum entitlement amount and eligibility.  In order to have more than one loan, your income must be great enough to support both payments.  If you go over your entitlement amount, you may need to make a downpayment.  

Misconception Number Four:  "If you have a VA loan, you cannot lease the home."

By law, you are allowed to rent out your home.  If your home is located in an area where rentals are not allowed, or someone needs to approve the tenants, the VA will not approve the financing.  When you purchase your home VA, you do certify that you will make that home your primary residence, but if circumstances change, this is allowed.  You cannot buy a home just for rental purposes with a VA loan unless it is a multi-family unit where you intend to live in one of the units.  

Misconception Number Five:  "If a borrower goes through a short sale or foreclosure, they are not able to purchase another home with a VA loan."

If a borrower still has enough money in their entitlement to buy another home, this is fine. Buying another house in a low cost area might be the solution.

In recent years, VA loans have made up approximately 13% of all home loans.  This type of loan is underused because of misinformation.  Hopefully this cleared things up!

For the full article from KCM, click here - 5 Things You Probably Don’t Know About VA Loans

If you need help buying a home, with a VA loan or any other, contact me today!