The home of your dreams - at a price you can afford. At Real Living, we realize there is nothing worse than finding a home you love...and then finding out you can't afford it. That's why we've introduced Real Deals! Real Deals allow you to choose from a list of homes offering a price reduction or special financing that will help turn the house of your dreams into the home where you'll love to live. Look for the for Real Deals that will help you find the home of your dreams - on your terms. Just CLICK on the BLUE & WHITE REAL DEAL LOGO. Price Reduction Always looking to provide the best buying and selling experience to all of our consumers, Real Living is offering price reductions or special listings, helping sellers sell their homes fast and you to find the home of your dreams, at a price you can afford! Special Financing Choose from a .50 percent permanent buy down, lowering your mortgage interest payment for the life of the loan! Or go with a 2-1 temporary buy down program, which offers you 2 percent in the first year, 1 percent in the second year and then the quoted rate for the remainder of the loan!

Closing the Deal: What To Expect

Once you put an offer on the home you want and the seller accepts it, talk quickly turns to the much-anticipated, ceremonial end to your home-buying experience: the closing. While this is an important business meeting, it's also exciting because it means you'll soon be walking away with the keys to your new home!

Your Real Living agent will work to arrange a closing time that's amenable to all parties. You and your agent will arrive at a designated time and place and the closing (which is sometimes called a settlement), will be led by a closing agent - usually an attorney or title company representative. The closing agent's job is to complete the transaction by taking the money from you the buyer and giving it to the seller.

You won't see any cash exchange hands; rather, you'll be busy signing a number of important closing documents. There are literally dozens of forms to go through, and a good title agent will explain each one to you as you go along.

Prior to sealing the deal, you and your Real Living agent will look at your sales agreement, making sure the seller has met his/her obligations. Promises such as painting a room or replacing appliances must be completed before closing.

More specifically, at your closing:

Title and mortgage liens are properly recorded.
Title insurance is provided.
Old and new lender instructions are obtained.
Any problems noted at the walk-through are resolved.
Deeds of trust or mortgage and accompanying note are reviewed.
Lender forms and settlement sheets are explained.

Once you've signed all the necessary documents, you'll provide a certified or cashier's check to pay the balance of the down payment as well as any closing costs, including tax and title search fees.

Depending on the city in which your new home is located, your closing may or may not include the presence of the seller. In some areas, all parties come together in what is called a round-table closing. In other areas, buyers and sellers complete the process through individual appointments. Your Real Living agent can tell you which experience to expect at your closing.

How Is My Agent Paid?

Believe it or not, as the home buyer, you're in the enviable position of getting to benefit from the expertise and experience of a professional real estate agent - at virtually no cost to you.

Sound too good to be true? It's not. Real estate agents who serve buyers typically receive a commission from the sale of the home-which they share with the listing (or selling) agent. And sometimes agents are paid a pre-negotiated flat fee for services, irrespective of the sale price of the home.

Not too many years ago, real estate agencies were "seller-only," meaning that the real estate agent represented the seller, not the buyer. Under the seller-only arrangement, real estate agents (and brokers) only represented the interests of the seller, not the buyer. In fact the buyer was largely unrepresented in the transaction and usually not even aware of it!

All that changed in the 1990s when conventional wisdom caught up with this reality-without a buyer, a home won't sell.

While the real estate commission is still derived from the proceeds of the sale of the home, the advent of the buyer-agency, changed the relationship between agent and buyer.

As a buyer, you can now choose to be fully represented by a real estate agency in the purchase of your property. One of the advantages of buyer representation is that you'll have a trained professional looking out for your interests in the home buying process-interests that vary greatly from the seller's.

You may want to consider speaking with a Real Living agent who can talk with you more specifically about buyer-agent representation, commissions and more.

In the meantime, here are a few additional questions and answers regarding broker/agent commissions:

Q. How is the amount of a real estate commission determined?
A. The broker determines the standard fee and that fee is stated in the company's listing agreement. Typically, the commission is a percentage of the eventual sale price of the home. Each broker's standard fee may vary depending on operating and other costs.

Real estate brokers independently determine their costs for doing business, using both fixed and variable expenses in their calculations. In addition to maintaining their office environment, brokers incur additional costs in marketing and promoting their listed properties. Brokers may market all their company's listings through such avenues as classified ads, home books and media such as television home shows, Internet Web sites and telephone hotlines. Or they may allow their individual agents to market the properties listed with that agent.

Total operating and marketing costs can have an impact on the way the commission is determined. Regardless of how the amount is derived, be sure you know what the commission will be up front and get it in writing.

Q. Is the commission negotiable?
A. Yes. In every state and on every transaction, commission is, by law, negotiable at the time it is established. In most cases, this means that the commission is established between the seller and the agent who lists the home.

Buyers and sellers should refrain from attempting to negotiate commission at the closing table. That's because a specific fee has been established for real estate services-services that resulted in the sale of the home. Payment should proceed as it was contracted. Think of it this way: Would you ask a doctor to lower her fee after your appendix was successfully removed?

Q. Is there a time when I, as the buyer, might pay a commission?
A. Perhaps. In most states, however, it's rare to pay your agent/broker directly for help in finding and purchasing your new home. However, if you, your broker and your agent sign an Exclusive Agency Agreement you may be subject to an out-of-pocket fee (as outlined in the agreement) once you find your home and the contract for its purchase is written and accepted.

Another scenario where you might pay a commission would be if you ask your broker/agent to find a very specific house within an extremely tight window of opportunity. For example, if you needed a house overlooking a lake and featuring boat dockage and an in-law suite, and you needed the house in less than two weeks, you may agree to pay a cash incentive to the broker/agent for the extra time and effort involved in securing such a property.


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Can You Have It?

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Come Home to Condo Living

Looking for a place to call your own but without some of the traditional hassles of home ownership -- like yard work? Then you may want to consider purchasing a condominium.

Condos are popular for a number of reasons including size, location, amenities and, of course, limited lawn care and maintenance responsibilities.

Only you can decide -- based on your lifestyle, your budget and your personal preferences -- if condo living is right for you.

To help, we've devised this condo readiness quiz:

Do you want or need to minimize the time you spend on yard work and household maintenance chores?
Do you favor "extras" such as a swimming pool, fitness center, party house or storage facility?
Do you need to reduce your monthly mortgage expenses?
Are you comfortable paying a condo fee (averaging $100-$400 monthly) in exchange for upkeep of common areas, including snow plowing, leaf removal, parking lot maintenance and lawn mowing?
Are you willing to submit to the rules and regulations for your community set forth by a condo board?

If you answered yes to one or more questions, condo living may be in your future, so consider the following next steps:

Look at both single-family homes and condos before narrowing your selection.
Talk with current condo owners to get a feel for the pros and cons of condo living.
Ask for specifics about condo fees, rules and regulations. (Some condo boards assess additional charges for maintenance work outside of routine maintenance.)
Talk with your Real Living buyer's agent to learn more about other things you should know before buying a condo.
Relax and enjoy looking at your options. There's no substitute for diligent research and self-reflection.

Give Yourself Some Credit

Credit is an important component in helping you find the best loan product to meet your home buying needs.

The way you handle credit obligations can greatly affect your loan choices and the interest rates you can get. In short, the better credit you have, the more loan options you will have to choose what is best for you and your financial goals.

If you're in the market to buy a home, and you want to make sure you're doing everything you can to maintain good credit, here are a few tips:

DO pay what you owe - regularly and on time.
DON'T skip payments.
DO have a checking and a savings account.
DON'T hold more than four credit cards.
DO keep your total debt-to-income ratio under 36 percent.
DON'T exceed or continually increase your line of credit.
DO keep track of your spending and stay within your budget.

Your lender will view your credit report, when determining which loan products are best for you. Using your credit history, the credit bureau will develop a credit score. The higher your credit score, the more likely you are to qualify for a loan with the best interest rates.

Not sure where you stand? It's wise to obtain a copy of your credit report in order to know your FICO score at least once a year, and especially before making a large purchase, like a house or a car, in order to review for accuracy and find out how you can work on improving it, if necessary. You'll see the consumer credit given to you over the past seven years and be able to check your highest balance and current balance on outstanding debt, as well as see details about on-time and late payments. Your home mortgage consultant should be able to help you better understand what your score means.

You can get your credit report from many sources, but should you find something in yoru report that may not be accurate, only the credit agencies can actually correct the data on your report. Contact the three major credit agencies directly:

Equifax: 1-800-685-1111 or www.equifax.com
Experian: 1-888-397-3742 or www.experian.com
TransUnion: 1-800-916-8800 or www.transunion.com

As for less-than-perfect credit, you should know that lenders typically are more concerned with how you've handled your recent credit than with what happened years ago. But even if you have a blemish on your credit history, don't let that stop you from buying a home. Buying a home - and paying your mortgage on time each month—is a great way to build your credit. If you've got credit questions, your first step should be to contact a trusted home mortgage consultant who can help you find the right loan product to help you attain the home of your dreams.

Existing vs. New Home

New home or previously owned? That is, perhaps, one of the first questions you may ask yourself in your home search process. Perhaps you've fantasized about purchasing a fixer-upper and giving it an extreme makeover. Or maybe you've always dreamed of building a home from the ground up and making all new color and appliance choices.

Whatever your desire, talk to your Real Living agent about which choice is best for you. S/he can help you consider your personality, lifestyle, budget and personal preferences, as well as show you both new and existing homes that may be of interest to you. And s/he'll share with you information on numerous builders and developments in the communities that interest you most.

You may already know why you should work with a Realtor® to help you find an existing home, but make sure you also learn more about why you need an agent for a new home purchase, too.

In the meantime, here's a quick look at the main benefits of each type of home.

New homes offer:

Convenience and new amenities. Standard options for new homes usually include amenities such as whirlpool tubs, central air/heat and large mirrors.
Peace of mind. Safety devices such as smoke detectors, circuit breakers and ground fault interrupters come standard in newer homes. Also, new homes are subject to improved safety requirements, which means no-lead paint and asbestos-free insulation are used in its construction.
Comfort. High-tech solutions in heating and cooling and state-of-the-art materials (such as windows) sometimes ensure a more comfortable, energy-efficient surrounding.

Existing homes offer:

Stability. The hallmark of an existing home is a well-developed neighborhood with established zoning laws and school districts.
Resale value. The return-on-investment for an existing home is often greater; especially in historic neighborhoods where the entire area is undergoing renovation and experiencing an upswing in property values.
Savings. Typically, there's more room for negotiation - especially when it comes to incorporating items such as a repair allowance. In addition, expect to save money on "hidden" costs such as landscaping, unforeseen repairs or dues for a homeowner's association.

Keep in mind that both choices have associated costs. New homes are subject to elevated construction and lumber costs, while existing homes often require some type of repair or remodel.

Get an idea of common remodeling costs for existing homes.

Regardless of whether you choose a new or existing home, one thing's certain: home ownership remains a strong investment and home improvement a good re-investment of your financial resources.

With numerous benefits for both building new and buying an existing home, you may find it helpful to consult with a Real Living real estate professional to help you choose a primary path. S/he can listen to your thoughts on both options and help you determine which path meets your current needs.

Read more about home improvements from the seller's point-of-view.

Loans from Your Uncle Sam

There's more than one way to finance your home purchase - in fact, there are thousands! Understanding who has loan products and how they can help you will make your home buying process so much easier. Learn about the advantages of government-backed VA and FHA loans. Many first-time buyers choose them because they require little or no down payment for qualified buyers.

Veteran's Administration (VA) Loans
Qualified veterans (including Reserves and National Guard) can take out loans with up to 100% financing for more than $200,000 - with no down payment - and still get flexible underwriting guidelines. Closing costs are regulated and may be tagged as a gift. Plus, VA-guaranteed loans can be combined with second mortgages and taken on by qualified future buyers. But the best part might just be that payments are fixed for the entire loan term so you won't have to worry about interest rate increases.

Federal Housing Administration (FHA) Loans
While the Federal Housing Administration (FHA) doesn't technically make loans, it makes getting them easier. The FHA insures loans, which can encourage lenders to offer more favorable terms. That's because the insurance protects lenders against potential losses by paying the lender if a homeowner defaults. And with an FHA loan, down payments can be as low as 3%.

The only requirement is showing sufficient monthly income to pay the mortgage. But remember: the FHA charges an up-front Mortgage Insurance Premium similar to Private Mortgage Insurance (PMI). However, this premium can be financed and paid monthly as part of the mortgage, (so you don't have to pay it upfront), or paid at closing. You can also pay a one-time charge (discount points) at closing to help get a lower loan percentage rate.

With so many loan options, you want to make sure you find the one that best meets your needs. And working with your Real Living agent and a mortgage consultant will help you understand the different options and make the best choice. Get in touch with Real Living to get started and find your loan.

Real Living Realty is affiliated with Real Living Mortgage, LLC

Buyer's Checklist

It takes a lot of planning, effort and, of course, paperwork to go from finding your new home to getting the keys in the front door.

Knowing the who, what, where and when of the process will help you keep your sanity amidst one of life's most important - and exciting - financial decisions.

The first thing you can do to simplify the process is to work with a Real Living agent who'll be with you every step of the way. Curious about all that is involved in the buying process? Check out our quick Buyer's Checklist. These are the steps you and your agent will walk through, as you move from dreaming of your new home to living in it.

Buyer Follow-up Checklist

Agency Disclosure __ Seller's Agent
__ Buyer's Agent
__ Dual Agent
__ Non-Agent
__ Facilitator

__ Yes __ No

If yes, Signature Date
_______________________________

Fair Housing Explained __ Yes __ No

Earnest Money Promissory Note Redeemed
Date ___________ N/A ____

Inspections Private Home Inspection
Date _________________________
Contingency Removed __________

Pest
Date _________________________
Contingency Removed __________

Municipal
Date _________________________
Contingency Removed __________

FHA/VA
Date _________________________
Contingency Removed __________

Other ________________________
Date _________________________
Contingency Removed __________

Complete Loan Application

(Check with your lender for additional needs if you are divorced, paying child support, or self-employed; or if you own income properties.) Loan Officer ___________________
Phone # ______________________
Date _________________________

Bring:
___ Past 2 years' W-2 tax forms
___ Paycheck stubs for last 30 days
___ Last 3 months' statements from all deposit and/or investment accounts (checking, savings, 401K, mutual funds, etc.)
___ Cancelled rent/mortgage checks (12 months)
___ Name/address of any landlord (12 months)
____________________________________
____________________________________
Date _________________________
___ Application fee (check or money order)

Deposit Funds Escrow Officer _________________
Phone # ______________________
Date _________________________

Contact Movers Name _______________________
Phone # ______________________
Moving Date ___________________

Obtain Homeowners Insurance Agent ________________________
Phone # ______________________
Date _________________________

Arrange Utility Transfer __ Gas Phone # ________________
__ Electric Phone # _____________
__ Telephone Phone # __________
__ Cable Phone # ______________
__ Other ______________________


Final Walk-Through Date _________________________
Contingency Removed ___________

Sign Final Papers Date _________________________
Location ______________________

Obtain Keys From ________________________
Date ________________________
Time ________________________

Letting Your Agent Lead

Just when you thought you had the whole home-buying process under control, you fall in love with what everyone's calling a "FISBO", - a house that is For Sale By Owner. Does that change anything? Do the same rules and guidelines apply? And most importantly, can you still purchase the home with the representation of your buyer's agent?

Absolutely. Sellers will agree to work with an agent who brings a qualified buyer to the table. And when you're embarking on an experience as large and important as purchasing a home, it's important that you have a qualified professional representing your best interests - whether the seller does or not.

Just as you would for any other listed property, let your agent be the point of contact with the seller of a FISBO. This is important because not only is your buyer's agent well-qualified and dedicated to serving your needs, in some cases your agent may have to have the first conversation with the seller in order to be able to represent you in the purchase.

Understand Your Purchasing Power

Few things are more frustrating in a new home search than falling in love with a house that simply doesn't fit your budget. So before you begin looking for a new home, work with a mortgage company to learn more about how to get pre-qualified and pre-approved. (And be sure you understand the differences between these seemingly similar terms.)

Pre-qualification - Starting with this step is easy and it provides you with an estimate of how much financing you *might be* eligible for. Then you can talk with your agent so s/he can select homes that fit both your preferences and your price range.

If you've never been pre-approved before, you might be surprised at how big the estimate for your loan is. While pre-qualification is a good guideline, it's just that - a guideline. You'll also need to look closely at your monthly income and expenses. Consider whether your future mortgage payment will fit comfortably into your budget; and don't feel it's necessary to spend the full amount for which you've been pre-qualified. A good rule of thumb is that your mortgage payment should be no more than 25 to 33 percent of your monthly gross income.

Learn how to figure your housing budget.

Once you've determined your price range, you can also apply for a pre-approved loan. Often a seamless step, being pre-approved can be the advantage you need if you're bidding against another buyer who isn't. Pre-approval also speeds the actual loan process once you're in contract with a particular property.

Here's some additional information to explain the differences between pre-qualification and pre-approval of your loan:

Pre-Qualification

Is based on preliminary information regarding your income, debts and assets.
Information is usually provided verbally to the lender by you.
An in-file credit report may or may not be reviewed.
Once a purchase agreement is executed, you must complete a loan application.
There's no fee.

Pre-Approval

You provide documentation of income, debts and assets.
Your loan application is completed.
The information you provide is verified and an underwriter approves the loan.
There's no need to complete an application once the purchase agreement is executed because it's already done.
You may be required to make a deposit on closing costs.
Your mortgage loan is approved, pending an appraisal of the home.

Learning what you can afford is easy and effective, thanks to Real Living Mortgage. We'll help you understand your credit, debt and income and determine the loan amount available to you.

Contact a helpful Real Living Mortgage loan officer to get pre-qualified - or, if you're serious about buying a home, how to get pre-approved.

Home Inspection

A Complete Home Physical
Even if you've looked in every nook and cranny of the home you want to buy, we at Real Living believe it's crucial for you to protect yourself by having a home inspection conducted prior to closing. A professional assessment by a reputable home inspector will uncover any problems (large or small), alerting you to any needed repairs and updates. With your Real Living agent's help, you may even be able to negotiate for repair or replacement of items before the purchase is complete.

You'll have the opportunity to bring in a home inspector of your choosing once you go into contract. The inspector will perform a comprehensive evaluation of the home and property, doing everything from testing outlets and faucets; to identifying signs of dampness, termites or carbon monoxide; to making sure walls are strong and windows are secure.

Hire an inspector you can count on
If you don't already have a particular inspector in mind, ask someone you trust for a reference. The inspection will cost several hundred dollars (actual cost depends on the size of the property and complexity of the report), so it's important that you feel confident about the person conducting it and the quality of his/her work. In fact, your Real Living agent is a good resource for home inspection references, as he/she has undoubtedly worked with a number of quality inspectors.

Be sure to choose an inspector who can provide proof of membership in the American Society of Home Inspectors (ASHI). Even though home inspection is fairly unregulated in many states, ASHI-certified inspectors meet stringent requirements and abide by a strong Code of Ethics.

It's best to schedule your home inspection during daylight hours. If possible, you and/or your Real Living agent should attend; expect it to last from 2-4 hours, depending on the size of the home. And feel free to ask questions of the inspector - the more you know about your potential new home, the better.

Take care of repairs
The inspector should deliver a written report within one or two days. It's perfectly normal to have a handful of small issues that need attention or repair. Work with your Real Living agent to decide which of these to ask the seller to handle or pay for, and which you'll handle yourself.

Here are a few sample repairs and their associated costs:
Problems Examples Costs
Large-scale heating, cooling, roofing, plumbing $2,000-$5,000
Medium insulation, paint $500-$2,000
Minor electrical outlets, kitchen sink $100-$500

Even if your home inspector finds no serious problems, the inspection can pay off indirectly. In addition to identifying immediate-need repairs, you'll be alerted to future maintenance issues as well. It's always good to know up-front what to expect, and how much such repairs could cost.

And if the inspection unearths catastrophic problems that can't be resolved to your satisfaction, Real Living's purchase agreement protects your interests. Ask your Real Living sales associate to explain each possibility.

Learn more about home inspections from the seller's point of view.

Home Maintenance

Home ownership offers an exciting opportunity to create a personal living space that's uniquely yours. As such, your home will no doubt tell a lot about you and your family.

In fact, if you think of your home as both a picture (something to look at and enjoy) and a mirror (a reflection of you), it's easy to see why regular home maintenance is so important.

And you don't have to be a seasoned do-it-yourselfer. If you're like most people, you'll easily be able to tackle normal maintenance jobs.

Real Living has created these monthly maintenance lists. Print them out and use them as handy reminders to help you keep your home in tip-top shape.

January
February
March
April May
June
July
August September
October
November
December

Remember that paying attention to basic home maintenance responsibilities will help protect your investment. Keep in mind that maintenance needs vary from home to home and community to community so you may want to add (or subtract) a few things from these lists, depending on where you live.

Finally, when your to-do list includes finding your next home, contact us for a free home market analysis.

January

Keep plenty of salt handy in your garage or basement for icy sidewalks and walkways.
Examine and clean kitchen appliances.
Vacuum the condenser coil located in the back or bottom of the refrigerator and clean the drain pan.
Wash kitchen exhaust hood and air filters.
Clean dishwasher food filters and check that openings in spray arms are clear.
Store a fire extinguisher within reach of your stove.
Check your attic for adequate insulation.
February

Check the snow load on your roof. If it seems excessive, call a roofing contractor to remove the snow, which could otherwise cause the roof to leak or collapse.
Clean faucet aerators and shower heads.
Remove and replace any worn or crumbling caulk or grout in and around bathtubs, sinks and toilets.
Vacuum bathroom vent fan covers.
Make sure the lightbulbs in all home fixtures are of the correct wattage.
Replace all extension cords, lamp cords and plugs that are brittle, worn or damaged.
March

Inspect walls and ceilings for cracks or bulges, and patch and paint as necessary.
Hire a professional to check your water heater.
Check basement and crawl space for moisture or leakage after wet weather.
Examine exterior fascia and trim for deterioration.
Repair cracked, broken or uneven driveways and sidewalks.
Inspect your stairs and railings for any loose sections.
April

Hire a professional air conditioning contractor to inspect and maintain your system.
Inspect your roof for any missing, loose or damaged shingles.
Check the fireplace flue to make sure it is closed for the warmer weather.
Remove your storm windows.
Repair or replace screens with holes large enough for insects to enter your home.
Scrape and paint any wood surfaces that have peeled or weathered.
Clean and inspect your lawn mower.
May

Remove debris from gutters and downspouts.
Fertilize and aerate your lawn.
Extend downspouts away from house onto splash blocks.
Inspect your deck or patio, and paint if necessary.
Clear window wells.
Replace or repair old and damaged water hoses.
June

Prepare flower beds and plant your garden.
Clean and organize your garage.
Repair any damage to fences.
To conserve energy, set your thermostat to the highest comfortable setting.
Re-grade soil around foundation walls as needed.
Examine and trim trees and shrubs away from the home.
July

Examine your basement, attic and other small spaces for summer pest infestation.
Inspect all window and door locks to assure safety.
Check your home for any water leaks or water damage.
Inspect and maintain your air conditioning unit and replace filters.
Keep your lawn green by watering efficiently.
Hold a garage sale to clear away any unwanted items.
August

Clean dryer vent duct.
Test your sump pump.
Replace any broken lightbulbs and make necessary repairs to outdoor lighting.
Inspect and maintain your air conditioning unit and replace filters.
Use grass clippings as fertilizer.
Be sure all family members know the location of water and gas shut-off valves.
Prepare your garden and lawn for cooler temperatures.
September

Trim tree limbs and vegetation away from roof and siding.
Schedule an appointment with a heating professional to check and clean furnace.
Fertilize lawn and garden.
Purchase the necessary equipment to winterize your pool.
Inspect roof openings and flashes; weatherproof as needed.
October

Disconnect garden hoses and shut off the valve to outside faucets.
Caulk or place weather-stripping around windows and doors to prevent drafts.
Replace or clean furnace filter.
Remove screens from windows and install storm windows.
Run all gas-powered lawn equipment until the fuel is gone.
Plant spring bulbs.
Test and change the batteries in all smoke detectors.
November

Make sure shovels and snow blowers are in working order.
Insulate pipes in your home's crawl spaces and attic.
Clean downspouts and gutters to remove leaves and debris.
Check supply of electrical fuses, breakers, candles and flashlights.
Remove birds' nests from chimney flues and outdoor electrical fixtures.
Inspect exterior lighting at walkways and entrances for safety.
December

Monitor ice build-up in gutters and downspouts.
Inspect all interior plugs and switches for safety.
Check and maintain fire extinguisher.
Examine wood burning flues for blockage and clean if necessary.
Grind ice cubes in garbage disposal to sharpen blades.
Check attic for leaks and condensation.
Store firewood at least 30 feet away from the house.

Make a list. Check it twice.

Touring homes is exciting, exhausting and - after enough of them - often confusing. By the end of the day, your memory may become fuzzy so you won't be able to remember if the house with the fabulous kitchen had three bedrooms or four, or which house had the spot for the garden you've always dreamed of.

That's why we've developed the Real Living Home Tour Checklist. Print extras so you can complete one for each home you tour and use it to track important details such as square footage, condition and age of the roof, and noise level of the neighborhood.

And while you're looking at the features you want in a new home, be sure to step back and consider the bigger picture - the permanent attributes - of the house. Remember that while you can change superficial elements like wallpaper, paint color and window treatments, you shouldn't discount them completely. Keep in mind that even minor remodeling can cost both time and money. Conversely, don't let outward appearances alone keep you from a house that would otherwise be a perfect fit.

If you've taken good notes, your Real Living Home Tour Checklists will be a great tool moving forward in the home-buying process. Keep them handy, refer to them often and be sure to share them with your Real Living agent so s/he can continually refine the types of homes s/he's researching for you.

The Home
Square footage ____Good ____Average ____Poor
Number of bedrooms ____Good ____Average ____Poor
Number of baths ____Good ____Average ____Poor
Practicality of floor plan ____Good ____Average ____Poor
Condition of interior walls ____Good ____Average ____Poor
Closet/storage space ____Good ____Average ____Poor
Basement ____Good ____Average ____Poor
Fireplace ____Good ____Average ____Poor
Cable TV ____Good ____Average ____Poor
Basement: dampness/odors ____Good ____Average ____Poor
Exterior appearance/condition ____Good ____Average ____Poor
Lawn/yard space ____Good ____Average ____Poor
Fence ____Good ____Average ____Poor
Patio/deck ____Good ____Average ____Poor
Garage ____Good ____Average ____Poor
Energy efficiency ____Good ____Average ____Poor
Screens/storm windows ____Good ____Average ____Poor
Roof: age, condition ____Good ____Average ____Poor
Gutters/downspouts ____Good ____Average ____Poor

The Neighborhood
Nearby homes/businesses ____Good ____Average ____Poor
Traffic ____Good ____Average ____Poor
Noise level ____Good ____Average ____Poor
Safety/security ____Good ____Average ____Poor
Age mix of inhabitants ____Good ____Average ____Poor
Number of children ____Good ____Average ____Poor
Pet restrictions ____Good ____Average ____Poor
Parking ____Good ____Average ____Poor
Zoning regulations ____Good ____Average ____Poor
Neighborhood restrictions/covenants ____Good ____Average ____Poor
Fire protection ____Good ____Average ____Poor
Police ____Good ____Average ____Poor
Snow removal ____Good ____Average ____Poor
Garbage service ____Good ____Average ____Poor

Schools
Age/condition ____Good ____Average ____Poor
Reputation ____Good ____Average ____Poor
Quality of teachers ____Good ____Average ____Poor
Achievement test scores ____Good ____Average ____Poor
Play areas ____Good ____Average ____Poor
Curriculum ____Good ____Average ____Poor
Class size ____Good ____Average ____Poor
Busing distance ____Good ____Average ____Poor

Convenience to...
Supermarket ____Good ____Average ____Poor
Schools ____Good ____Average ____Poor
Work ____Good ____Average ____Poor
Shopping ____Good ____Average ____Poor
Child care ____Good ____Average ____Poor
Hospitals ____Good ____Average ____Poor
Doctor/dentist ____Good ____Average ____Poor
Recreation/parks ____Good ____Average ____Poor
Church/synagogue ____Good ____Average ____Poor
Airport ____Good ____Average ____Poor
Highways ____Good ____Average ____Poor
Public Transportation ____Good ____Average ____Poor

Other attributes important to me...
____________________ ____Good ____Average ____Poor
____________________ ____Good ____Average ____Poor
____________________ ____Good ____Average ____Poor
____________________ ____Good ____Average ____Poor
____________________ ____Good ____Average ____Poor
____________________ ____Good ____Average ____Poor

The Loan Application

If you're like most people, you'll probably need to secure a mortgage loan for your new house. Application for a home loan can take as little as one week and up to a month, depending on the type of mortgage.

Your lender or mortgage broker will be able to give you a better idea of the actual time it will take from application to approval. However, in general, conventional loans are processed more quickly than FHA or VA home loans.

Read more about types of mortgage loans.

The following is a step-by-step outline of what to expect during the loan application process:

Application
Bring all required documentation. (Also, see the Application Checklist.)
Good Faith Estimate of Closing Costs
Truth-in-Lending statement
Processing
Verification of employment
Verification of deposits
Credit report
Underwriting
Clear conditions
Purchase Homeowner's Insurance

Escrow
Determine funds needed for closing
Schedule appointment for closing
Prepare deed and mortgage note
Closing and Title Transfer

Application Checklist

To speed up the application process, bring the applicable following items to your loan application appointment.

Signed copy of Purchase Agreement plus all Addendums.
Tax and Legal description on subject property.
Residence addresses for the past two (2) years.
Past two years' W-2 statements or 1099's.
Computer generated paycheck stubs for last 30 days.
Names, addresses and phone numbers of Employers for past two (2) years.
Past two (2) month's statements for all Checking, Savings, IRAs, 401Ks, Money Markets, Profit Sharing and evidence of Stocks and Bonds. Document all recent large deposits.
In income received for commissions, bonuses, partnership(s), corporation(s), or if self-employed, requires two (2) year's Personal Federal Tax Returns with all Schedules along with a current P&L Statement and Business Balance Sheets and past two (2) years' Partnership and/or Corporate Returns, if applicable.
Cancelled checks from rent or mortgage for the last 12 months, and name and address of any landlord(s) within the last 12 months.
Names, addresses, account numbers, monthly payments and balances on all open loans and revolving credit accounts.
Copy of Bankruptcy Petition listing all creditors and copy of Bankruptcy Discharge Papers (if applicable). Please provide letter of explanation as to why the Bankruptcy occurred.
Copy of Driver's License and Social Security Card (VA Loans Only).
Certificate of Eligibility and DD214 Discharge Paper (VA Loans Only).
Application fee (check or money order).
Copy of divorce decree and/or separation agreement.
A "Friend of the Court" letter stating the amount of any alimony/child support payments and notification that the account is current.
1040 tax forms (if you're self-employed) for the past two years, 1120 Corporate Tax Returns (or Form 1065 for Partnerships) for the previous two years, year-to-date profit-and-loss statement and balance sheet signed by your accountant.
1040 tax forms for the past two years (including schedules) if you own income properties or if your income is based on commission or bonuses.
Fortunately, as you work one-on-one with your chosen home mortgage consultant, he/she should be able to offer valuable lending expertise and advice and answer all your questions while ensuring that your loan application process progresses as smoothly and quickly as possible.

Real Living Realty is affiliated with Real Living Mortgage, LLC.

Moving In

Ready to Move
Moving day is perhaps one of the most exciting days of your life and certainly the happiest part of buying a new home. With a little attention to planning and organization, you'll soon be in your new house - ready to call it home.

In most cases, the day on which you take occupancy of your new house is spelled out in the sales agreement. Your agent will write your purchase agreement with a specific timeline in mind, reflecting both your needs and the sellers' ability to accommodate them. Often your possession date is the same day as your closing, unless the seller has a pre-existing issue around which to schedule the change-over. Either way, you're likely to have ample time to plan your move.

In preparing for your big day, consider the condition of the house you're buying and everything else going on in your life. Is it better to move everything right away in a single day? Or would it be better if you moved a few things over time until you've emptied your previous residence? Be sure to consider your existing mortgage or leasing obligation; you don't want to inconvenience others or end up paying unnecessary fees.

Here's our list of some important moving tips:

Clear the clutter. If you've been stowing old furniture, clothes or dishes (or anything for that matter), now's the time to hold a garage sale or pitch those items in the trash. You'll save on moving costs and get a fresh start in your new home, too.
Notify everyone. Be sure to tell everyone - from utility companies to magazine publishers to the U.S. Postal Service - of your upcoming move. Provide your new address and the effective date of your move, and be sure to have your mail forwarded from your old address.
Pack wisely. Set aside important items you might need while in transition, such as prescriptions, your address book or laptop computer. Pack a "necessities" box that includes plastic cups, dishes and flatware as well as personal items. Take extra care when packing breakables and label those boxes as "FRAGILE."
Lose-proof your belongings. Number all your boxes and write the contents of those boxes down on a list. Keep a copy of your reference list handy and give a copy to the movers.

One final thought on moving: Although you may be anxious to decorate right away, take the time to consider your options and carefully plan any major purchases after you've lived there awhile. Before you know it, the piles of boxes you brought with you on moving day will gradually give way to the surroundings you'll call home.

Multicultural Resources

Whether you call it casa, maison or heim, there's simply no place like home. And having someone understand you and your needs can make all the difference as you look for your new home.

Finding a real estate agent and developing a working relationship can be complicated by language barriers. But it doesn't have to be. That's why we at Real Living have developed programs that put you and your needs first.

We're committed to serving our diverse population and helping you find your piece of the "American Dream" - your new home. From language assistance to community outreach programs to agent training, we're focused on providing you with the best possible home-buying experience.

Every Real Living sales associate and employee receives special training in diversity-related issues, such as fair housing, affirmative marketing and multicultural sensitivity.

In conjunction with Fair Housing laws, we offer numerous special and multicultural services, including:

A dedicated, full-time multicultural services consultant who can provide information, counseling and assistance to help you buy your new home.
A multicultural services hotline so you can talk directly to our multicultural services consultant. Call 216-328-2578 or 1-800-691-2345 and press option "3" to be connected.
TTY phone service for the hearing impaired. Call 216-328-5120 or toll-free at 1-877-328-5120.
Braille contracts for the visually impaired.
Translation assistance in 25 languages (including American Sign Language) for non-English-speaking clients.
First-time home buyers' classes taught in Spanish and Chinese.
English as a second language (ESL) classes, featuring information on home buying.

To help you find an agent who specializes in serving your specific needs, contact Real Living today.

Neighborhood Considerations for the Buyer

You've heard it before. When choosing your new home, consider three important factors: location, location and location. Choosing a home you can afford in a desirable location is a wise choice, both from a personal and financial perspective.

Keep in mind that the neighborhood is part of what you buy when you purchase a home. Find out where the neighborhood is going - and where it's been. The property value of houses in the neighborhood can tell you a lot, as well. Ask your Real Living agent for a Comparative Market Analysis (CMA).

Remember, if you're looking at a well-regarded, established neighborhood or an up-and-coming one, you may find it worth the extra money you'll have to put into the purchase of the home. On the other hand, if the neighborhood is past its peak, you may want to lower your offer accordingly.

Either way, your Real Living agent can help you negotiate fair market value for the home you want.

Get to know the neighborhood
You can learn a lot about the character of a neighborhood just by driving around. Also consider talking to some of the neighbors about concerns such as:

How do the children routinely reach their schools, play areas and friends' homes-by walking, bicycle, bus or do parents drive them?
Is public transportation available for commuting or shopping?
How far away is your place of worship?
Do any local ordinances affect pets, parking, lawn care or other activities?
What are the disadvantages of the neighborhood? Freeway, railroad or airplane noise? Factory pollution, heavy traffic, exposure to heavy storms, possible flooding?
Are there homeowners' association restrictions?

Beyond talking to the neighbors, here are some additional avenues for information:

Drop in on local school board, government or other open community meetings.
Visit the schools.
Dine and shop in local establishments. (Tip: Be sure you overhear what the locals have to say about issues of neighborhood concern.)
Subscribe and read the community newspaper(s).
Ask your agent. S/he has excellent resources to share.

Buying a home requires a lot of introspection. Use these questions as you consider what type of community you'd like to live in and be sure to share your answers with your Real Living agent:

Which type of living do you prefer?
Urban Suburban Semi-rural Rural

Which type of population density would you prefer?
Low Medium High

Would you prefer a community whose population is:
Decreasing Stable Increasing

Which natural features are the most important to you?
(Check all that apply.)
Woods Hills Flat land Rivers
Lakefront Stream Pond

How do you commute to work?
Walk Drive Car pool Taxi Bus Train

What's the distance of your commute?
0-5 miles 6-10 miles 11-20 miles 20+ miles

What's the maximum amount of time you'd be willing to have for your morning commute?
Less than 20 minutes Under 30 minutes 1 hour

Would you use available public transportation for local trips or to visit nearby communities?
Yes No

Would you like to live near public transportation?
Yes No

Where do you prefer to shop?
Central commercial districts Shopping malls Community shops None, I prefer home delivery

Which type of school do you need now or in the next few years?
Elementary Middle/Junior High Senior High
Community College College/University

Which amenities would you desire to have nearby? (Check all that apply.)
Recreation Entertainment Music Movies
Live Theater Sports Arenas Museums Nightlife
Public Parks Private Country Clubs Fraternal Groups

Finally, as you refine your home search, request a free Buyer Market Analysis from your Real Living listing agent. This information-packed profile of specific communities (or with a side-by-side comparison of any two communities) lets you consider schools, neighborhood amenities and demographic profiles.

Find out about the seller's neighborhood considerations.

Open Houses

Getting a Better View
Homeowners everywhere agree. "You'll know it when you see it."

When you start your home search, viewing MLS listings on the Web can help you save a great deal of time - by viewing photos and descriptions in the comfort of your home or office.

However, attending live, in-person open houses and home showings with your real estate agent can also help you narrow down the field! Here are a few tips on how to approach open house visits - and why your buyer's agent should be involved in every home you see.

Q. Is there a "best way" to look at the home during an open house or home showing?

A. Not really. You may want to walk through each room slowly or take a more cursory look at the home. You're not obligated to spend any length of time at an open house or showing. How you choose to look at the home is really based on personal preference. However, you should keep your wants and needs in mind at all times. It's easy to get caught up in fun details of a prospective home - so having a complete list of your most important home criteria - or your 'needs' - will help you to stay focused on what matters most to you during your home search. Your buyer's agent can help, too, by being objective and making sure you're not overlooking important details.

Q. Am I better off looking during an open house or with a private appointment?

A. Again, it's personal preference. Open houses are typically filled with other people so you may not get to see some details you might like to see. On the other hand, an open house is a great way to narrow the field since you can typically see several houses in an afternoon or evening. If you or your agent find a home you're really interested in, it's usually best to act fast. You don't have to wait for an open house to see the possible home of your dreams, up close and personal. Your agent can schedule a private appointment at a time convenient to you.

Q. Will I really know the home of my dreams when I see it, or is that a myth?

A. While there are no scientific facts to back this up, anecdotal evidence suggests it's true. There will likely be something compelling about the home that fits your wants and needs. Gut instinct should not be ignored; however, don't make your home-buying decision based solely on feeling. That's why reviewing your Wants vs. Needs assessment can help you determine if that gut feeling should be trusted.

Q: I've heard that visiting an open house without my buyer's agent means s/he can't represent me in my home purchase. Is that true?

A: Perhaps. Real estate rules of representation may prohibit you from being represented by your buyer's agent, under certain circumstances, such as, if you visit an open house without your agent or without immediately disclosing that a realtor is representing you. Since your agent knows your particular set of circumstances, and is working to represent your interests, it's best to arrange your home viewings with your agent. Doing so should not only save you time, but it will also ensure your interests are protected.

Stay in constant communication with your agent. Talk to him/her about which homes you want to see, as well as when you're able to see them. Also, make sure you and your agent have a "plan B" in place for times when a last-minute opportunity for a showing comes up. You don't want to unwittingly shut out any of your home-buying options or be caught without representation.

Q: What should I do if my agent is on vacation and I see an open house that I really want to attend?

A: First, since there are rules about attending open houses without your buyer's agent, it's important to know how your agent handles even brief periods when s/he is unavailable. If your agent goes on vacation, or is otherwise unavailable to attend an open house with you - s/he should make arrangements to ensure you're represented by a member of his/her team or office.

Potential Additional Costs

There's a certain sense of security that comes with owning your own home; not to mention the many other rewards, ranging from personal freedom to tax benefits. Suddenly you're part of a very special family called "homeowners."

You may already have an idea of the many responsibilities that come with home ownership - like paying a mortgage and keeping up with home maintenance. But you should also know there are some additional costs beyond the down payment, the mortgage and home maintenance. Some of these expenses are optional; for example, how much you spend on furnishings and remodeling is entirely up to you. Other expenses are set, but fairly routine for all homeowners.

Anticipating (and planning for) these potential additional costs is key. Your Real Living agent or Real Living home mortgage consultant can provide you with insight and counsel on most of your home finance issues.

Here's a list of what you might expect to spend on additional costs. Keep in mind that some of these costs can be rolled into your mortgage loan; others will need to come out-of-pocket.

Appraisal: An evaluation to determine the price for which a property would sell in the current marketplace. Approximate cost: $150-$300.
Attorney fees: Retaining an attorney in the purchase of real estate for taking care of legal details such as title and prorated taxes is optional. Approximate cost: $300-$800.
Fire and hazard insurance: Protection against damage caused by fire, wind or other common hazards. Approximate cost: Most lenders require borrowers to carry hazard insurance in an amount at least equal to the mortgage. Contact your insurance agent for pricing but policies can begin for as little as $300.
Home inspection: Usually conducted by a qualified home inspector, it is a comprehensive evaluation (including written report) of the condition of a home. Approximate cost: $150-$300.
Mortgage loan application: The necessary paperwork to secure a mortgage loan. Approximate cost: $25.
Moving expenses: Costs associated with moving personal property from one residence to another. Approximate cost: Varies from a few dollars to thousands of dollars depending on amount of household goods and distance. Ask your agent to recommend a professional mover whom you can contact for advice.
Transfer taxes: Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdiction. Approximate cost: Varies by state. Contact an attorney for details.

Potential Homeowner Fees

Homeowners' Associations
Congratulations! You've found a home or condominum, made an offer and you're ready to sign the purchase agreement.

Your agreement may include a contingency requiring you to abide by the rules of a community association. So, before you sign, ask your Real Living agent to help you understand what's being asked of you.

At its heart, a homeowners' association (sometimes called a civic association) is essentially a group of neighbors dedicated to neighborhood issues. But there's much more. A homeowners' association is a legal entity empowered to enforce private deed restrictions

Although such associations cost money (homeowners' dues or condo fees), many homeowners agree that they reap a big benefit - protecting the value of their home and property.

Homeowners' associations are typically granted these responsibilities:

Setting and collecting fees.
Maintaining community landscaping and recreation areas, such as swimming pools.
Holding regularly scheduled meetings to discuss homeowner issues.
Sending a periodic newsletter on neighborhood happenings and concerns.
Providing for and arranging special events, such as community-wide garage sales, social evenings, pool parties or block parties.
Enforcing deed restrictions.

Homeowners' association fees are set by a governing board, and can vary from a few dollars a year to hundreds of dollars a year. Fees are not included in your monthly mortgage payment; rather, they are an additional payment required by the association and usually paid annually.

Not every neighborhood has a homeowners' association (though most newer developments do). Contact a Real Living agent for information on which neighborhoods do (and do not) have homeowners' associations. Let your agent find out exactly how much, if anything, your homeowners' association membership will cost.

Condominiums almost always require some type of monthly fee to cover :

liability insurance for common areas; and
maintenance costs (parking lots, snow and leaf removal, lighting, landscaping, roofing, and amenities such as a pool, tennis court or party house).

Ask your Real Living agent or check with your condo board for specifics on condo fees for your area.

Recommended Reading

We at Real Living want to make sure you have all the information and resources available to you for your home-buying experience. In addition to the articles on our Web site and the knowledge your Real Living agent shares with you, we offer you a list of our favorite books. We hope you'll enjoy them as much as all the satisfied home buyers who came before you

100 Questions Every Home Seller Should Ask: With Answers from Top Brokers From Around the Country by Ilyce R. Glink
Buyer Beware: Step-by Step Guide for the First-Time Home Buyer by Paige McClinte
Buy Your First Home by Robert Irwin
10 Steps to Home Ownership: A Workbook for First-Time Buyers by Ilyce R. Glink
Tips and Traps When Buying a Home by Robert Irwin
The 106 Common Mistakes Homebuyers Make (& How to Avoid Them) by Gary W. Eldred
Home Buying for Dummies by Eric Tyson, Ray Brown
The Complete Idiot's Guide to Buying and Selling a Home by Shelley O'Hara
Smooth Moves by Ellen Carlisle
An Insider's Secrets to Moving by Fred Tille

Relocating Tools

New in Town: Making the Adjustment
A job transfer, a shift in your lifestyle, or simply a change of pace can easily land you in a new home in an unfamiliar town. While you're likely to enjoy many aspects of your big move, you'll probably have some things to adjust to, as well.

Whether you're moving across town, across the state, or from another country, changing cities means changing everything else, too - your neighborhood and school system, your social network, your doctors, dentists and shopping venues.

Working with an experienced real estate agent who truly understands your new community - and your needs - is a great way to ease your transition. If you're moving to a new community, make sure to choose a real estate agent who specializes in helping families relocate. Real Living's relocation experts can also be a source of counsel and assistance. They are members of one of the country's fastest-growing relocation referral networks. They have a lengthy track record of helping people like you to settle into a new home, a new town and a new life.

A qualified relocation specialist will provide you with these services, and do so with compassion, care and sensitivity to your special needs:

individualized counseling and research;
comprehensive relocation packet;
personal tour and city overview;
toll-free relocation telephone number;
content-rich Web content, featuring virtual home tours;
national database of schools;
rental/interim assistance;
advanced marketing for home sales;
dual-career assistance;
cost-of-living comparisons;
financial counseling, mortgage pre-approvals and title services;
group move and multi-lingual assistance;
relocation policy consulting and outsourcing; and,
transportation of household goods.

Be sure to check with your relocation specialist about adding these items to your moving day checklist:

Contact your employer and verify the company's relocation policies and what, if any, relocation services they'll provide.
Contact the IRS or your tax consultant about eligible tax deductions for moving expenses.
Drain oil and gas from lawn mowers and leaf blowers and have your car serviced prior to driving to your new city.
Get copies of your personal records from health care providers, schools, attorneys and tax accountants.
Close out your safe deposit box, notify your financial advisor of your new address, pay any outstanding bills, transfer your bank account(s) and purchase any necessary traveler's checks.

Finally, although moving to a new city can feel a lot like navigating without a compass, relocation specialists offer the necessary resources and knowledge to provide you with plenty of direction. Before you know it, you'll be happily settled in a new home, making friends with the neighbors and finding the "best of" in your new surroundings.

To be connected with a relocation specialist, contact our Customer Care team now.

Remodeling Existing Home

The Cost of Your Makeover
As you think about purchasing an existing home, you may already have ideas about how to remodel it to customize it to your personal lifestyle and living needs. Indeed, many homeowners thoroughly enjoy the remodeling process and view it as a great way to make a house into a truly unique home. However, before you get started, it's important to understand the costs of remodeling (and how much you can expect to recoup when you sell the house) so you can better budget for your new home.

The Cost of Your Makeover


Minor Kitchen Remodel Replace cabinet doors, oven and cook top, laminate countertops, sink, faucet and floor, repaint

Job cost: $8,507
Resale value: $8,030
Cost recouped: 94 percent

Major Kitchen Remodel Redesign kitchen, replacing same items as minor kitchen remodel, plus built-in microwave, custom lighting, island

Job cost: $21,262
Resale value: $19,190
Cost recouped: 90 percent

Bathroom Addition Second bath in a house with one or one-and-a-half baths; ceramic tile and linen closet

Job cost: $11,645
Resale value: $10,593
Cost recouped: 93 percent

Master Suite House with two to three bedrooms, add a 24x16 master suite with walk-in closet, whirlpool tub, separate shower

Job cost: $36,472
Resale value: $30,350
Cost recouped: 84 percent

Attic Bedroom House with two to three bedrooms, convert unfinished attic space with bedroom and shower/bath

Job cost: $22,840
Resale value: $19,084
Cost recouped: 84 percent

Two-story Addition First-floor family room and second-floor bedroom with full bath

Job cost: $55,687
Resale value: $46,236
Cost recouped: 83 percent

Family Room Addition Add a 16x25 room with skylights, hardwood tongue-and-groove floor, fireplace

Job cost: $31,846
Resale value: $26,483
Cost recouped: 83 percent

Bathroom Remodel Update existing bath with new tub, toilet, vanity, medicine cabinet, lighting, tile

Job cost: $8,423
Resale value: $6,480
Cost recouped: 77 percent

Replace Windows 10 new 3x5 aluminum-clad windows with trim

Job cost: $6,112
Resale value: $4,536
Cost recouped: 74 percent

Replace Siding 1,250 square feet of new vinyl or aluminum siding and trim

Job cost: $5,458
Resale value: $3,983
Cost recouped: 73 percent

Deck Addition 16x20 deck of pressure-treated pine, including built-in bench, railings and planter

Job cost: $6,172
Resale value: $4,459
Cost recouped: 72 percent

Home Office Convert existing room with custom cabinetry and rewiring for electronic equipment

Job cost: $8,103
Resale value: $5,423
Cost recouped: 67 percent

This is just a partial list of some of the most popular home improvement projects. Watch any of the 30-plus home improvement shows on television and you'll literally get thousands of makeover ideas ranging from rearranging the furniture to painting to opening up rooms by knocking down walls.

Everyone these days is obsessed with home re-dos as evidenced by the billions of dollars spent each year on it. Why? Because owning a home - and making it your own - is one of the most rewarding and personal endeavors that you can tackle!

But it's not really a new obsession. Owning and decorating your own home has always been a part of the "American Dream." Even founding father Thomas Jefferson continually renovated and remodeled his home, Monticello, over a period of four decades.

And with the availability of so many inexpensive materials and the influx of information via the TV and the Internet, it's never been easier (or more affordable) to be a do-it-yourselfer.

You don't have to spend billions (or even thousands) of dollars to turn your new house into a comfortable and inviting home. Take a little paint (or wallpaper or what have you), add a little ingenuity, and a touch of imagination to transform your home. You'll soon see how FUN homeownership can be!

Renting vs. Buying

To Buy or Not to Buy?
Contemplating whether you should keep on renting - or make the move to home ownership? Make sure you consider all the benefits to home ownership. You may find that the best financial decision you can make is to buy, not rent.

Affordable monthly payments
Don't assume monthly rent is cheaper than a monthly mortgage payment. With hundreds of loan products, that's often not the case! You might find a product that is equal to, or only slightly more than, what you currently pay in rent.
Tax savings
Owning a home can save you hundreds (even thousands) of dollars in taxes each year-money you can reinvest into your home to build equity, earmark for savings, or spend however you choose.
Predictable expenses
Unlike renting, owning your own home means predictable monthly living expenses. Secure a fixed-rate loan and you can essentially lock in your mortgage payment, making monthly budgeting that much easier.
Ultimate control
Perhaps the biggest benefit is the inherent joy of having a piece of the American dream along with the freedom to make decisions about how you live. As a homeowner, YOU decide whether or not to share your life with a furry, fuzzy or scaly friend; YOU decide whether the walls are awash in merlot, marigold or mahogany; and YOU decide whether to add a bath, knock down a wall or take out a tree.

If you're ready, start your house hunting right now with a little planning:

Set a shopping budget
How much are you able to spend? While a good rule of thumb is 25 to 33 percent of your gross monthly income, the best way to find out is to get pre-approved for a loan amount. You'll know exactly how much home you can afford, from a mortgage expert.
Plan your down payment
Learn about your options for making a down payment.
Understand interest rates
Contact Real Living Mortgage to find out what interest rates are available to you.
Choose a loan term
Which do you choose: a 15-, 20- or 30-year mortgage loan?

Only you have the final answers to those questions, but one of our Real Living sales associates or our lending affiliate, Real Living Mortgage, can help. We'll make sure you learn about the types of loans available, the ins and outs of shopping for a loan, and how and why to pre-qualify yourself.

Connect with a Real Living agent today to find out if buying is right for you. You'll likely find that buying a home is the smartest, and most exciting, financial decision you've ever made.

Understanding Agents

With so many advantages to working with an agent to find your new home, you may already know that you want one-but what's left is understanding how the relationship works.

By definition, your agent is someone who will represent your interests. And a handful of laws governing agency relationships have been designed to help you feel safe with your decision. Just understand that these laws differ from state to state, and agency policies differ among real estate companies. Here are a few basics you should know:

When a real estate agent/broker represents a buyer or seller, the agent/broker owes the buyer or seller certain fiduciary duties, which means they're charged with requirements of confidentiality, obedience, fidelity, loyalty, accounting, and reasonable skill and care.
When a real estate agent/broker does not represent a buyer or seller, no fiduciary duties exist. However, even when there are no official duties, real estate professionals still have an obligation of honesty to all parties with whom they interact.

In many states, real estate agents may choose whether they practice single agency or dual agency. Here are the differences:

Single agency - representing either the buyer or the seller. Single agency agents must:

Be loyal and act in your best interests;
Obey your lawful instructions;
Protect your confidences;
Exercise reasonable skill and diligence when answering your questions;
Be accountable for handling funds and paperwork;
Present all offers in a timely fashion; and,
Execute other duties as outlined in your listing agreement or buyer's agency contract.

Dual agency - representing both the buyer and seller, with disclosure to both parties.
Among other tasks, dual agents must:

Treat all parties to the transaction fairly;
Disclose any material defects in the property;
Facilitate the sale of the property following contract acceptance; and,
Disclose the party, whether seller or buyer, in whose interest she/he is working. This disclosure is usually made in writing via an "Agency Disclosure Form" and/or broker document.

Steps to Buying

Buying on Your Terms
Buying a home is all about you. What you need. What you want in the house you'll call home sweet home. So naturally the buying process should be all about you, too.

That's why working with an agent is such a good idea - it puts the focus on what's important to you. Real Living agents work hard to make your home buying experience just as good as you imagined it; and since they have the most innovative tools in the industry, they're well-equipped to do so.

Here's the Real Living 10-step plan to buying on your terms:

Conduct a Comparative Market Analysis
A Real Living agent can deliver a Comparative Market Analysis (CMA), which is a breakdown of homes in a particular location that are currently on the market, expired from the market, pending a sale, or already sold. The CMA helps you accurately determine a home's value by comparing homes in the same area that have already sold.

Start the Financing Process
Unless you're planning to buy with cash, you'll need to secure a mortgage loan. Your Real Living agent can help you select a lender and coordinate the timing and paperwork of your loan. Working with our lending affiliate, Real Living Mortgage, may be a good option for you since we can help consolidate the many aspects of the home-buying process.

Narrow Your Search
The right agent will work to find your new home, first by opening up your options, then by helping you narrow the field. S/he will come up with a suggested list of homes that match your needs, and can even show you homes online, before arranging for home tours, and providing maps and directions to the homes you wish to visit.

Document Assistance
Your Real Living agent can help you write and present your purchase offer on the home of your choosing. Rely on your agent's expertise in managing the paperwork that's a necessary part of the home-buying process.

Evaluate and Negotiate Offers and Counteroffers
While it may be true that anything is negotiable, it may not always be in your best interest. An agent skilled in negotiation is your best ally in a competitive market, helping you get the best purchase price on your new home.

Get Objective Advice
Your Real Living agent is a professional dedicated to guiding you in your new home purchase. While emotion might color your judgment, you can rely on your agent to provide an impartial viewpoint and advise you of options and alternatives throughout the process.

Set Up a Home Inspection
Some states require sellers to disclose material facts about their home's condition to potential buyers. A home inspection can help you protect your interests by determining if there are any problems or repairs that need to be taken care of before you complete your new home purchase. Your Real Living agent can arrange for an inspection appointment, accompany you (or fill in for you) at the inspection, and determine additional needs.

Negotiate Disputes and Issues
Even the smoothest, simplest real estate transaction involves two parties with needs and objectives that often differ. Your agent should negotiate, mediate and provide conflict resolution to help you and the seller come to a mutually beneficial outcome.

Prepare for Contingencies
Contractual contingencies are terms that must be met before an agreement can be binding. Written contingencies must be removed (in writing and by a specified date) before a contract can be in full effect. Whether it's financing, inspection, or any other item in your agreement, your Real Living agent can help you understand how to fulfill or remove any contractual conditions.

Get to Closing
Taking possession of your new home is always top of mind. But unanticipated difficulties at closing can be downright annoying. Your Real Living agent will help you resolve issues and finalize the transfer of ownership and house keys, so you can be in the home you always imagined.

Taxes and Home Ownership

How Taxes Affect Home Ownership
It's a house, it's a home, it's a tax deduction! Seriously, come tax time you'll think your home is a superhero! Home ownership is a great financial investment. Most homeowners experience tax savings and often find that their home is their biggest single deduction. Definitely something to consider when you're in the market to buy a home!

Granted, property taxes will add to your monthly mortgage payment. (Ask your home mortgage consultant or contact your local tax office to find out what the average cost of property taxes is in your new neighborhood.)

But the good news is property taxes are one of several deductions you may be able to claim. And unless your home-related deductions (plus other itemized deductions) don't add up to the standard deduction for your filing status, you should be able to save at least some money on your annual income tax bill.

Whether you're eligible for all or some of these deductions, and the amount you'll save, depends on your filing status, your taxable income, your itemized deductions and more. Speak with your tax advisor for information specific to you.

Home-related deductions may include:

Mortgage interest. (Can deduct yearly.)
Property taxes. (Can deduct yearly.)
Points paid at closing (either by you or by the seller). (Can only deduct for the year you buy your home.)

Note that you cannot deduct any fees or costs for getting a mortgage loan.

Your tax advisor can provide additional information about the tax ramifications of home ownership.

Types of Loans

Types of Home Loans
When it comes to paying for your new home, you have a veritable smorgasbord of financing options from which to choose. Your home mortgage may come through the seller or from a financial institution such as a mortgage company, bank, credit union, or savings and loan.

Here's our run-down on the primary types of home loans available today. Interest rates are intended for illustration only. Ask a Real Living sales associate or your lender for current market rates and more detailed information on loan products to suit your needs.

Type: ARM
Characteristics: Low initial interest rate with payments that may decrease or increase over time. Popular with first-time buyers and buyers who plan to move or refinance in three to five years.
Term: Varies by lender.
Interest Rate: Subject to change on a periodic basis.

Type: Balloon
Characteristics: Lower interest rates and monthly payments than fixed-rate loans. Best for borrowers who plan to move or refinance within the loan term. May allow conversion to a fixed-rate loan at term's end.
Term: 5-7 year loans, amortized over 30 years. Repaid in equal monthly payments plus a "balloon" payment for the remaining balance.
Interest Rate: Varies by lender.

Type: Buy-down
Characteristics: Home owner, builder or third-party puts additional cash up-front in exchange for a lower interest rate.
Term: Varies.
Interest Rate: Varies.

Type: Conventional
Characteristics: Can be obtained with as little as 5 percent down payment. If the down payment is less than 20 percent, it may be necessary for the loan to have Private Mortgage Insurance (PMI) to protect the lender.
Term: Paid off in equal monthly payments over 15, 25 or 30 years.
Interest Rate: Stays the same for the life of the loan.

Type: FHA
Characteristics: Insures loans, making lenders willing to finance home purchases on favorable terms. Down payments as low as 3 percent. Discount points may be paid by either seller or buyer.
Term: Varies by lender; however, the FHA charges an up-front Mortgage Insurance Premium, similar to Private Mortgage Insurance that can be financed in the mortgage amount or paid in cash at settlement. The borrower must also pay an annual Mortgage Insurance Premium of 0.50 percent, which is collected monthly.
Interest Rate: Varies by lender.

Type: Nehemiah
Characteristics: Loan-to-value up to a maximum of $289,175. Requires approval by a participating lender, contribution of 1 percent toward the home purchase, and completion of a home buyer education course.
Term: Varies by lender.
Interest Rate: Varies by lender.

Type: Non-conforming
Characteristics: Provides home buyers with products that do not conform to the normal FHA/VA and conventional lending guidelines. These unique loan products are tailored to fit specific financial situations, including:

bankruptcies less than 2 years from discharge;
no income/no asset verification loans;
late payments on previous or current mortgage;
bank statement programs for the self-employed; or
excessive credit problems, but sufficient liquid assets to work with.
Term: Varies.
Interest Rate: Varies.

Type: Owner-assisted
Characteristics: Owners may finance first, second, third or fourth loans. They may loan their equity back as a first mortgage (often called a "take back").
Term: As determined by the owner.
Interest Rate: As determined by the owner.

Type: Second mortgage
Characteristics: Made by the seller or by a commercial lender.
Term: 5- to 15-year loan, sometimes interest-only payments are made until the term date, when the balance is due.
Interest Rate: Based upon lender or buyer/seller agreement.

Type: VA
Characteristics: Available to qualified veterans of the Armed Services, Reserves and National Guard. Loans can exceed $200,000 with no down payment. Flexible underwriting guidelines. Closing costs may be a gift. Can be combined with second mortgages and are assumable (upon qualifying) by future buyer.
Term: Payment fixed for the full term.
Interest Rate: Varies by lender.

When you're ready to think about buying your new home, make sure you explore these primary loan options and the dozens of others available. The best lending partners will be able to find the right one for your needs.

Wants vs. Needs

Making a List
Don't get overwhelmed by all the options you have to think about when choosing a new home. Starting with just the few key factors that matter most to you will simplify and speed up your search - and keep the exciting but never-ending list of choices from weighing you down.

Are your highest priorities finding a home with the right number of bedrooms and baths, in the right school district? Or are you looking for a certain style and size of home to accommodate a home office and room for entertaining? Once you have your starting point, it will be easier for you and your Real Living agent to identify a manageable list of qualified homes for you to consider. And once you've covered all the must-haves, you can add on all the secondary criteria - all the nice-to-haves.

We created a detailed questionnaire to help you get started with your priority list. Fill it out, then keep it handy during your home search for your own reference, and share it with your Real Living agent so s/he can help you find the home of your dreams.

What to Look for in an Agent

What to Look for in a Buyer's Agent
Once you've made the decision to buy a home, your next step is one of your most important: finding a real estate professional to guide you through the process. A good agent will help you avoid common pitfalls, make wise home investment decisions, and bring order to the entire buying process.

Realtors are licensed professionals who adhere to the National Association of Realtors (NAR) Code of Ethics. Those belonging to the NAR receive continuing education and are up on the latest trends, making them well-prepared to offer you the most advanced real estate advice. Your agent will provide you a variety of tools and assistance to streamline your buying experience.

At Real Living, we believe that both the buyer and the seller should have professional representation. If an agent represents you, you're privy to more information and receive the benefit of someone promoting your best interests at all times - usually with no out-of-pocket costs to you.

One of the things to look for in a buyer's agent is their reputation and standing in the community. Realtors know (and are known) favorably in their territories. Because they know the neighborhoods inside and out, they can help you decide which home is right for you. For example, you might see two houses in the same neighborhood as being identical, but your agent will be well-versed in their differences - no matter how subtle. In addition, even comparable homes may differ in terms of contract, financing, inspection requirements and closing costs. Let your agent help with all the details.

You should also expect your agent to provide you with quick and easy ways to make the home search process more convenient. Look for a buyer's agent who has access to tools that can help you weed through potential homes at your convenience, online. Being able to view property photos, information and details in advance of in-person showings can help save you a great deal of time in the home search process. Technology-savvy agents should provide this type of service as part of their overall offering to you as a client.

A Real Living buyer's agent actively approaches the home-buying process with enthusiasm, experience and patience. Look for an agent who will:

Work on your behalf to find your new home.
Research comparable properties to determine a fair price and terms.
Prepare your purchase agreement and accompanying legal paperwork, including disclosure documents.
Negotiate for the price, terms and conditions that are agreeable to you.
Accompany you and your home inspector on a thorough property examination.
Follow up with your mortgage lender, title company, seller's agent and others until the house is legally yours.

Finding the right sales associate involves asking tough questions of yourself and your agent. For example, if you're always on the go and prefer updated listing information via e-mail, ask your prospective real estate agent if s/he is technology-savvy. If you'd prefer a "one-stop shop" where you can get assistance with mortgage, title and relocation needs, consult with an agent at a full-service brokerage company, like Real Living.

Finally, remember to employ an agent with whom you have a rapport. Knowing you're in capable, trusting hands will let you enjoy the excitement of the home-buying process, not agonize over it.

Find your Real Living buyer's agent now!

Types of Loans

When it comes to paying for your new home, you have a veritable smorgasbord of financing options from which to choose. Your home mortgage may come through the seller or from a financial institution such as a mortgage company, bank, credit union, or savings and loan.

Here's our run-down on the primary types of home loans available today. Interest rates are intended for illustration only. Ask a Real Living sales associate or your lender for current market rates and more detailed information on loan products to suit your needs.

Type: ARM
Characteristics: Low initial interest rate with payments that may decrease or increase over time. Popular with first-time buyers and buyers who plan to move or refinance in three to five years.
Term: Varies by lender.
Interest Rate: Subject to change on a periodic basis.

Type: Balloon
Characteristics: Lower interest rates and monthly payments than fixed-rate loans. Best for borrowers who plan to move or refinance within the loan term. May allow conversion to a fixed-rate loan at term's end.
Term: 5-7 year loans, amortized over 30 years. Repaid in equal monthly payments plus a "balloon" payment for the remaining balance.
Interest Rate: Varies by lender.

Type: Buy-down
Characteristics: Home owner, builder or third-party puts additional cash up-front in exchange for a lower interest rate.
Term: Varies.
Interest Rate: Varies.

Type: Conventional
Characteristics: Can be obtained with as little as 5 percent down payment. If the down payment is less than 20 percent, it may be necessary for the loan to have Private Mortgage Insurance (PMI) to protect the lender.
Term: Paid off in equal monthly payments over 15, 25 or 30 years.
Interest Rate: Stays the same for the life of the loan.

Type: FHA
Characteristics: Insures loans, making lenders willing to finance home purchases on favorable terms. Down payments as low as 3 percent. Discount points may be paid by either seller or buyer.
Term: Varies by lender; however, the FHA charges an up-front Mortgage Insurance Premium, similar to Private Mortgage Insurance that can be financed in the mortgage amount or paid in cash at settlement. The borrower must also pay an annual Mortgage Insurance Premium of 0.50 percent, which is collected monthly.
Interest Rate: Varies by lender.

Type: Nehemiah
Characteristics: Loan-to-value up to a maximum of $289,175. Requires approval by a participating lender, contribution of 1 percent toward the home purchase, and completion of a home buyer education course.
Term: Varies by lender.
Interest Rate: Varies by lender.

Type: Non-conforming
Characteristics: Provides home buyers with products that do not conform to the normal FHA/VA and conventional lending guidelines. These unique loan products are tailored to fit specific financial situations, including:

bankruptcies less than 2 years from discharge;
no income/no asset verification loans;
late payments on previous or current mortgage;
bank statement programs for the self-employed; or
excessive credit problems, but sufficient liquid assets to work with.
Term: Varies.
Interest Rate: Varies.

Type: Owner-assisted
Characteristics: Owners may finance first, second, third or fourth loans. They may loan their equity back as a first mortgage (often called a "take back").
Term: As determined by the owner.
Interest Rate: As determined by the owner.

Type: Second mortgage
Characteristics: Made by the seller or by a commercial lender.
Term: 5- to 15-year loan, sometimes interest-only payments are made until the term date, when the balance is due.
Interest Rate: Based upon lender or buyer/seller agreement.

Type: VA
Characteristics: Available to qualified veterans of the Armed Services, Reserves and National Guard. Loans can exceed $200,000 with no down payment. Flexible underwriting guidelines. Closing costs may be a gift. Can be combined with second mortgages and are assumable (upon qualifying) by future buyer.
Term: Payment fixed for the full term.
Interest Rate: Varies by lender.

Type: Renovation Financing
Characteristics: Provides buyers money to fix up, renovate, repair, replace or remodel a home with the purchase. We loan on the "after improved value" and can do a loan on a home in ANY condition. We can combine this type of financing with FHA or Conventional financing. Available for singles, doubles, triples or quads.

When you're ready to think about buying your new home, make sure you explore these primary loan options and the dozens of others available. The best lending partners will be able to find the right one for your needs.

Figuring Your Housing Budget

Have you ever shopped for clothes, furniture or gifts without a budget and later found that you'd overspent? It's easy to do especially when looking at so many great houses with your agent. Obviously, staying on budget is very important when house hunting.

That's why you'd probably like to have a ballpark idea of how much house you can afford - before you start looking and even before meeting with your mortgage broker or lender.

To get a rough estimate of how much you'll qualify for, do what the lenders do – plug your budget numbers into a basic mortgage calculation formula.

Lender Formulas
Lenders typically use one of two formula guidelines; although most will require that you meet both sets of guidelines. Even if you don't meet the guidelines, talk with your chosen home mortgage consultant. S/he can provide additional details specific to your situation, and since there are other formulas that exist, you may qualify under another standard. For example, VA loans are calculated on a single ratio that's based upon mortgage payment and all debts. If you have very little debt, this formula may allow you to qualify more easily for a more expensive home.

Of the two usual formulas, the first compares income-to-housing costs (without including long-term debts), while the second includes all debts.

28 Percent Formula: Total monthly housing costs (P.I.T.I.) = 28 percent (or less) of gross monthly income.
36 Percent Formula: P.I.T.I. + all monthly debts = 36 percent (or less) of gross monthly Income.

So, if you're a family with a monthly gross income (before taxes) of $3,500, you would multiply $3,500 by 28 and 36 percent. The result shows that you might qualify for a home mortgage with monthly payments between $980 and $1,260 a month.

Note that these percentages may be slightly less if you have long-term debts (more than eight months) or alimony/child support payments. The number and ages of your children as well as household budget items may also have an impact.

Know someone buying or selling a home?

Financing Your Home

It's kind of ironic, but house hunting usually begins in your own living room! That's because the best house-hunting strategies start with careful planning. So, long before you start pouring over online listings and hitting the neighborhoods with your Real Living agent, first decide your price range.

Knowing your housing budget upfront will quickly bring your efforts into focus.

How much you can (and want) to spend depends upon two things:

What you want or need your monthly payment to be.
How much you're willing or able to put toward a down payment.

Remember that your monthly mortgage payment will include the principal and interest on the loan as well as property taxes and insurance (both fire and hazard). These four costs are abbreviated P.I.T.I. (for principal, interest, taxes and insurance). And, depending on which home you buy, your monthly cost could also include homeowner association dues, condominium fees and Private Mortgage Insurance (PMI).

Qualifying
As part of the planning process, find out how much you can comfortably afford by getting pre-qualified. Keep in mind that although there are a number of loan types available, you still need to work toward finding a monthly payment that makes sense for you. As a general rule, expect your monthly mortgage to be no more than 25 to 33 percent of your gross monthly income. Use our quick and easy lending formula to figure your housing budget.

Credit Scoring
In deciding how much house you can afford, consider getting your credit score as early in the home-buying process as possible. Your credit score helps your lender determine the type and size of your mortgage loan; so knowing your score can save you loads of time and maybe even a little disappointment.

Your credit score is a numerical measurement of your credit report and reflects your overall management of credit. Using information compiled by credit bureaus, your credit score is based on several factors including:

Your payment history
The amount of credit you have
Information reported monthly by your creditors
Any serious problems in the past with debts, such as liens, bankruptcies, collections and judgments.

Your final score is used by lenders to help determine the likelihood that you'll repay your loan on a timely basis. Credit scores typically fall in a numerical range, from 300 to 900. Generally, the higher the score, the lower the risk you are for the lender.

Keep in mind that credit scoring is only one factor considered by a lender. You can expect a careful analysis of all the information collected from you during the loan process.

By the way, even if you're already pre-qualified, you can benefit from knowing your credit score. While pre-qualification measures your debt and income ratios to predict your qualifying loan amount, your credit score provides a clear indication of your credit standing – a major factor during the final loan approval process.

What Your Lender Needs From You

It's the million dollar question: How much do you need to borrow?

Regardless of the amount of your mortgage, expect to be asked that very question – plus a whole lot more.

So, it's best to be prepared. Know what your lender will ask and bring necessary documents with you to your appointment. Use our mortgage loan checklist as a reference for compiling the information and documents your lender will undoubtedly ask for.

Mortgage Loan Checklist

Amount of money you want to borrow
The length of the loan
Current address (If you've been at your present address less than two years, you'll also need to provide your previous address.)
Social Security Number
Employer's name and address (If you've been at your present job less than two years, you'll need to provide your former employer's address as well.)
Gross monthly income
All bank account numbers and their approximate balances
Your assets (real estate, personal property, paid-up life insurance, etc.)
A complete list of debts (include account numbers)
A copy of the purchase agreement for your new home
A written account of any problems that may concern your loan application, such as explanation of bankruptcy, late payments, etc

Once you've begun the application process, you can expect your lender to:

Verify the facts of your application
Obtain a credit report
Make a property appraisal
Review all the details of your loan application
Make a determination on your loan