Navigating the Mortgage Maze

You did the work, you got your Mortgage loan, you’re in your home!  You weathered that period of time when you thought the “transition lists” would never end!  Oh, well! – here’s another one; a very important one. We can’t control the greater forces of nature that bring devastating things like tornados, hurricanes, earthquakes, blizzards and spontaneous natural fires.    Those can be bad enough, for sure, without the help of fires started through carelessness or set by arsonists.    But what we can do is be as prepared as is possible and reasonable. Our Lake County region recently suffered severely from both wildfires and floods. Many suffered directly with actual loss or damage to persons, property, livestock and equipment.    Others suffered indirectly through the many ripple effects that impacted our communities. Many, looking back, had to come to grips with some hard realities – not the least of which were poor prevention effor...

Experience counts!  Let’s just start with that.  From the moment you first decide to pursue acquiring a Mortgage loan, you’ve set your feet on a path that can be any one of many kinds of experiences!     It would be great if it could be smooth sailing from the get-go, with all the answers being the right answers, all financial details and requirements in pristine condition, and timing for everything exactly spot-on!   (I wish!) However, while almost every Mortgage loan application process has challenges, from large to small, almost all are quite manageable. In this very important context, “experience counts” in the form of your Mortgage loan agent, their personal know-how applied on your behalf, their willingness and availability to help and their insights to the process!     Your local Mortgage loan officer views their relationships with their clients as relationships with equal integrity and comfort whether at the office g...

Like so many “good moves” that we consider when handling the important circumstances that fill our lives, planning when to strategize the physical home transition presents some dicey timing factors! You could be winding up the process of acquiring your home mortgage loan.   You could be contemplating selling a home you own and buying a new one.    You could be trying to prep for the sale while looking at homes to buy.   When your move can be coordinated with the most favorable timeline for moving, it can make the process much more convenient and even easier.   However...easier said than done. History and statistics tell us that Spring is the start of the home buying “season!”   It is as though waking up from the Winter inspires folks to tackle “the big one,” start the project, do something new – and, move away from procrastination. If you are planning to sell your home, Spring is perfect for launching into the cleanup, repairs, improvements...

There are powerful connections between homeowners in a community and the degree to which those residents participate in the overall “fabric” of their community.   There are the obvious connections of local taxations (property tax, sales tax, various usage taxes, etc.) which support services such as Law Enforcement, Fire Management and general maintenance of the community services and roadways, etc.   And, the stability and quality of such tax-funded services heavily influences the perceived overall “value” of the community. The connected elements of a community actually drive the perceived “quality” of the community.   The degree to which its citizens participate within those elements is an important part of the process.   As a homeowner, you selected the community (where you looked then bought) based on a number of factors.   You were looking for the level of quality that served your needs as well as your preferences.   Those needs and...

We have previously discussed some of the challenges you, as a new homeowner, encounter when striving to increase the value of your home over time.  So much depends on appearance – the structure itself, the grounds, the adjacent neighboring property, the general neighborhood and the community overall.   The setting alone greatly influences perceptions of value. While we all know the old adage:   Don’t judge the book by the cover, we often do just that!       The general perception of value is probably 50% presentation and 50% arithmetic – and perception of value is 100% subjective!     The external presentation of a property carries a lot of weight and determining its value is connected to its neighbors.   Going inside the house and considering ways to increase the overall property value through internal improvements presents very specific considerations.    Some improvements are made for convenience, some ...

Maintenance!  Maintenance! And more Maintenance!  It is the key to protecting and increasing the value of the home you have just acquired. There are three aspects of your property that can improve or detain equity growth.      The first would be the physical structure -- your house; next is the property adjoining that structure --your grounds; and, third, the larger setting of your house and grounds, your neighborhood!     All three factors are, in a sense, the collective elements that greatly influence the health and the upward progress of equity!     (There is a fourth factor – the inside of your home and ways to increase value there.    But, that’s Part 2!)   Increasing the value of the property in which you have just invested is almost entirely in your own hands.     Almost, but not quite!      The good news is that pride of ownership, visible improvement a...

A community that can look with pride at a large percentage of owner occupied homes is most likely a community with solid roots and a thriving economy.   As a new homeowner (with a mortgage awarded on your solid personal profile and financial stability) you now have the opportunity to support that healthy economy by purchasing your needed goods and services locally, Buying for your family’s needs from local enterprise increases your community’s economic stability, and it follows that (by default) it helps to increase your home’s value; and that moves your home equity forward.   A business community with measurable support from its resident population has the incentive to improve and grow.   Without sufficient support there is short-term turnover, progressively lower inventories and unfortunate deterioration of the community’s infrastructure.    Maintenance and improvement cannot happen without healthy business rhythms to provide the necessary funds...

...it’s smart to remember that time is money – yours!  Time lost or wasted is time you may end up paying for.   Purchasing professional services is different than buying goods, equipment or supplies.  With material goods, you see and acquire what you are purchasing!  Buying the time of an expert in their field -- for what they know that can help you -- is not tangible in the same sense!    It is, quite simply, the process of paying fees for the time in which you acquire advice, guidance and assistance in a specific category. It deserves clear communication, clearly understood agreements and careful attention to the process. Throughout the process of securing your Home Mortgage, you may have needed to connect with various “professional services.”   Among such services (in addition to the guidance and expertise you received from your Mortgage Loan Officer) there may have been a personal Attorney, an Accountant, maybe a Tax Expert and v...

It’s usually money that drives that choice!  Make no mistake, do-it-yourself may sometimes seem the smart way to go, but it can turn out to be an expensive choice.   Knowing when it’s right, and when it’s better to find an expert is important.  And sometimes it can be a combination – an expert guides you and you do the heavy lifting! Successfully securing your home mortgage, moving into a new and important chapter in your life, and protecting your investment are all factors that should influence the way in which you handle the maintenance and improvements that naturally follow your home purchase.    Each situation that arises needs to be considered separately from several angles. When you begin to take on the maintenance and care of your own residential real estate property – your home – be sure that you know what factors have a bearing on how you move forward; insurance is one of them.   You will be in possession of various insurance pro...

Your new home is, first, your home; and second, it’s possibly the most important investment you are acquiring!  Your home mortgage is already working for you as an important anchor element of your credit profile, and as a clear statement of your stability in your community.  It is literally up to you to determine whether its value will increase or deteriorate! We see such concepts (increasing value or deterioration) very easily in smaller examples.    For instance, if we neglect our vehicle’s maintenance, it soon lets us down, and its resale value plummets!    In the case of your new home, it would be smart to begin right at the beginning with a sound plan for its “care and feeding,” so to speak!   There are precautions and preventative steps that will help your property hold its value, and insure an increase in that value, over time. Some of the issues that put wear and tear on residential buildings are things over which you have no contr...

You have been successful in your hope for a home of your own– and that’s because you were successful at qualifying for and acquiring a Home Mortgage loan!  While you were moving through that detailed process, it’s unlikely you had much time (or inclination) to think about other future benefits that having a Home Mortgage could bring.   However, after a little time goes by, and after you have accumulated significant equity on the property, your good record of keeping current with your Mortgage loan payments leads to some excellent new opportunities! Now you have an interesting personal choice:   You can join the ranks of the moaners and groaners who (after wanting it more than almost anything!) can complain each month about having to make the Mortgage payment!      OR... you can read on and learn about some of the good opportunities and advantages that holding a Mortgage brings – other than the obvious one of now buying your own home! Havin...

To begin with, it’s a complex term!   It means different things to different people.  It is regarded differently in different contexts.    It is often misunderstood concerning its importance in financial situations.   And, to some, it seems to run contrary to popular assumptions about whether or not it’s a good thing to have a lot of Credit and owe any money longer than thirty or sixty days! Credit is sometimes a puzzling concept to novices in major financial issues – such as applying for a large loan to buy a first house.   It doesn’t seem to make sense that having outstanding debts  (such as credit card balances) is better than working hard to pay everything off before applying for that large loan!   Haven’t most of us been taught to pay off obligations as quickly as possible because it’s not a good thing to owe money? So why does the advice to “acquire a record of outstanding Credit” seem to fly in the face ...

No matter how you look at it, it’s a big goal!    We typically talk about the financial reasons and logistics of why and how to buy a home. But the emotional reasons are also very powerful and compelling!   The sense of stability and pride of accomplishment are very positive effects of this big goal!     Feel free to soak that part in too.     Some look for a home in which to start a family, some to expand the family.    And, in an old tradition that seems to be re-emerging, some plan to extend the family, by needing additional space to care for elders.   The expansion of your family may include a new puppy or kitten and the need for a yard and the ability to have them in your house without anyone else’s permission.    Adult children may consider returning home to raise children close to grandparents and put their children in their ideal school district.   Perhaps you are a motivated and ambitious young a...

At times you have felt just like young children in the back seat of the family car asking over and over: Are we there yet?   Now it’s true, and the long, careful process (that began with the first handshake with your Loan expert) has been concluded!  You have moved from those first investigative meetings right on through a successful Escrow.  It’s a “Go!” If you have been leasing or renting property, you have no doubt been looking forward to taking possession of your own home and making the move from renting the property of others, to investing in your own future, your own property.    Of course, the home you have just begun to purchase, technically, isn’t completely yours until that mortgage is paid off.   But every payment says – loud and clear – that this is an investment of your own! It’s important to leave your previously rented residential property in good condition for the next tenants.    Keeping a clean path of respons...

It’s a term that almost everyone has either heard of or has experienced as a process; but what – exactly -- does it mean?  What does it literally consist of?   How does one successfully arrive at the stage of “Escrow?”  What are the roles of each of your team participants when your home purchase transaction is at the point of opening Escrow?   What are the specific responsibilities implied by opening Escrow? In a simple, random sampling, asking those questions brought interesting responses!     Some responses confirmed the suspicion that to many, the nuts and bolts of the Escrow stage of a home purchase are a little mysterious!     While definitely important, and clearly indicating nearing the end of the home purchase path, the actual details seemed vague to many. In many ways, important aspects of your life have been in a kind of holding pattern – like a plane waiting for the tower to “OK“ the takeoff!   Entering ...

The best way is to plan for change, but we all can point to examples in our lives when we had to cope with unexpected changes! In the complex process of starting from ground zero, then moving all the way to home ownership, it’s probably a good idea to accept the simple fact that there will be changes you can plan through, as well as some that seem to develop unexpectedly --out of the clear blue sky... Even with the careful and conscientious guidance of your Lender, your residential Realtor, your Title Company (and a dozen other professionals working with you in acquiring your home) unexpected changes still manage to happen.    They come in all contexts – and in various degrees of urgency.    Some unexpected changes may originate on very personal levels, while others may involve circumstances you could not have influenced or controlled anyway – even though everyone on your team is striving for a trouble-free process. While the process of buying a...