If you are thinking about remodeling sometimes the hardest thing can be sticking to your budget. First you need to calculate how much "remodel" you can afford. The following steps, courtesy of HouseLogic.com, will help you figure it all out:

1. Ballpark the Costs - First things first, sit down and lay out your must haves and your features you could live without. Also think about what rooms you are remodeling, a bathroom remodel or a family-room addition can run $100 to $200 per square foot. But also do some reasearch becuase prices will cray depending on what materials you plan on using.

2. Do the Math on What You Have to Spend - Now that you have your ideas sorted out and your projects planned, next you need to figure out what your budget is. This will be more tiem consuming if you are borrowing, you will need to how much you can afford for your monthly loan expenses. The majority of homeowners borrow via a Home Equity Line of Credit loan option for home improvements.

3. Contact Contractors: send your plans and specific details along to contractors, get some recommendations first so you can comparison shop. Ask to see their recent work, check references and do some research online to see if they have any reviews. Take each estimate and add 15% to 20% for unpredictable problems that may be lurking. It is a harsh reality that more times than none you will encounter unexpected problems thats will add to your cost.

Here are a few more additonal tips to help you stay within you budget and still be happy with your end results:

Look at what you have to accomplish with the goal of saving money in mind! Use your DIY brain to think of what you can do yourself.

Think of what materials you can substitute to save money in rooms that you may not use as frequently.

Before any construction begins make sure you and your contractor are on the same page. Sit down and make sure all decisions are made when it comes to what materials you will be using and where, so no last minute and cost-effective decision have to be made. Create a detailed pland and stand by it.

Hopefully these tips are helpful! If you're thinking about remodeling in preparation to sell your home, check out these other tips on how to sell your home fast and getting ready to show your house.  to Happy Remodeling from Geri Reilly Real Estate!

• Thinking about waiting till the spring to sell your Burlington or Vermont home? Think again, the winter provides a different market which provides some great reasons for taking action now! Here are some great reasons not to wait until the spring from Neighborhood Real Estate:

   

  • Less competition: there is less inventory in the winter because of the very people who are all waiting until the spring to list, therefore less competition. This gives your listing a wonderful advantage.
  • Higher price points: less competition can often correlate with better selling price and terms! You are more likely to catch buyers in a "bidding war" when there are less homes on the market.
  • Corporate Relocations: Historically in the first 2 months of the year relocations for corporations are high, which equals motivated buyers. Because they are encouraged to move quickly and start their new positions as soon as possible. Which makes these buyers focused, ready and willing, to make an offer on the spot! 
  • Lower Interest Rates: currently you can lock in an interest rate around the 4% range, which is historically low.
  • Winter can bring out the best: Most homes show and stage better in the cold winter months. Holiday decor and cozy fireplaces add to the ambiance and cozy feeling of your home.
  • Serious Buyers: Buyers who are taking the time to brave the winter weather or busy holiday time are often very serious, and are usually pre-qualified and motivated to make a decision.
  • Timing your new home purchase: if you do choose to list and sell your home in the beginning of the year and are looking to buy you will then be ready and available for the first pick of the spring market inventory. Especially if you need to sell to buy.
  • Quicker Transactions: Attorneys, lenders and home inspectors will be less busy and have less to process during the winter months compared to the spring. Which, for you, will mean a quicker transaction and less stress when trying to close.
• Regardless when you do decide it's time to sell your home it is important to understand the real estate market so you can make the best decision. Check out some of our other helpful Vermont real estate selling tips and resources. For more information about the Vermont real estate market or about selling your home, contact Geri or an agent today!

Thinking about applying for a home loan? Running to the closest bank is not your only option. Within conventional financing there are many options and outside of that, there is also VA (Veterans Affairs) and FHA (Federal Housing Administration) mortgage support. And that doesn't even include all of the government assistance programs out there! Here's some helpful tips.

Conventional Financing

Conventional financing allows you to tailor your loan to your needs and interests. One option is fixed rate (FRM), which means the interest rate will remain the same throughout the life of the loan. This is also called a "conventional mortgage". The alternative is an adjustable rate mortgage (ARMS) which adjusts to the national economy. These usually start with better rates than fixed rate mortgages to compensate the borrower for taking a greater risk. Then there are hybrid FRM/ARM mortgages where the loan can be converted from one form to another after a certain period of time.

Another personal stamp you can put on a loan is its length. The standard length for a loan is 30 years but reducing it to 15 years will substantially lower the amount of interest you will be paying while only slightly increasing the amount of the loan payment. You can also choose an accelerated payment program, which allows you to make payments bi-weekly instead of monthly, reducing the life of the loan as well as the amount of interest paid overall.

Lastly, you can enlist a family member or friend to participate in a buy-down whereby they help reduced your mortgage payments by paying some portion of them for you in the initial years of the loan. This can help you buy a house you might not otherwise have been able to afford.

Conventional financing usually has requirements for credit scores, income and minimum down payments of between 5 and 20 percent. Keep in mind you will need excellent credit to qualify for the best rates but you will face fewer hurdles than you would going with VA, FHA or government assistance programs.

VA Financing

A VA home loan is one backed by the U.S. Department of Veterans Affairs. It has unique qualifications and  advantages. To qualify you must meet one of the following requirements: o Have served 181 days during peacetime (Active Duty) o Have served 90 days during war time (Active Duty) o Have served 6 years in the Reserves or National Guard o You are the spouse of a service member who was killed in the line of duty

 

 

The benefits are that you can purchase a home with no money down, the only stipulations being that the purchase price doesn't exceed the appraised value and the seller will pay the closing costs. The VA guarantees the entitlement to a loan from a private lender, it does not itself loan out the money. Because of this, the veteran will still need to qualify based on income and credit score. The veteran also has the restriction of not being able to refinance and VA charges an upfront fee ranging from 2.15 to 2.4 percent, which helps pay for the cost of the VA loan and can be rolled into the loan or paid by the seller. However, a VA loan is a great option for qualified veterans because it allows them to purchase a house without any upfront costs.

FHA Financing

A FHA home loan is one backed by the Federal Housing Administration, which provides support to the borrower should they default on the loan. This added insurance allows the lender to loan more funds than they normally would to the buyer. Because of this, FHA loans are ideal for people with poor credit, moderate debt-to-income ratios and for people who do not have a lot of money for a down payment. Stipulations of FHA backing require the borrower to make a minimum 3.5 percent down payment and there are limits to how much they can borrow. However, this down payment rate is still much lower than is usually required with conventional financing, there is no minimum credit score requirement (though the lender may still uphold their guidelines), and being backed by the FHA usually means that lender will give consideration to the overall picture of  the borrower's credit as opposed  to singularly relying on automated underwriting software.

Special Circumstances

Certain personal circumstances can impact your loan application and are things you should discuss with your loan officer up front. These are:

• Being self -employed
• Being employed by a relative
• Claiming any of the following forms of income: social security payments, retirement payments, or welfare or disability income
• Being unemployed or a full-time student
• Owning savings bonds

Read what will be required of you for each situation

Down Payment Resource

Still looking for another option for assistance with a home loan? Down Payment Resource is a collection of all government funded buyer assistance programs. It identifies properties that are eligible for these programs through the Multiple Listing Service, a database of properties on the market (excluding for sale by owner properties unless the seller hires a Realtor to list it), and provides the guidelines for the borrower to qualify. This service is currently only available through Realtors so contact Geri Reilly to learn more.

With interest rates down and so many assistance programs available to homebuyers, it's a great time to find the home of your dreams. When you're ready, contact your friends at Geri Reilly Real Estate, we'll be happy to help!

 

Some helpful links:

 

For more information about a VA home loan go to http://www.benefits.va.gov/homeloans/

For more information on a FHA loan go to http://www.fha.com/

For more information on Down Payment Resource go to http://www.workforce-resource.com/

For more information on various types of mortgages and loan programs we recommend contacting The Mortgage Guys at Spruce Mortgage: http://www.vermontmortgageguys.com