How Long Does It Take to Close on a House? “All cash, seven-day close.” Those words are a dream for a home seller and a real estate agent, but while they may be thrown around on shows like Million Dollar Listing to entice a buyer to accept a $28 million offer on a $30 million list price, how realistic is it to close so quickly in the real world? Not very, it turns out. Yes, an all-cash offer can greatly speed up closing (and, even then, seven days is rare). But for the 75% or so of buyers who finance their home purchase, “42” is the magic number. That’s the average time it takes to close on a home, according to mortgage software company ICE Mortgage Technology. However, every loan is different, and there are a number of factors that can affect the closing date. The trick to getting through closing as quickly, easily, and painlessly as possible is knowing what to expect, knowing where you can step in to facilitate or speed things up, and being prepared for any surprises that pop up along the way. Here are some common occurrences that can delay a closing.The type of loan The type of financing you’re using to purchase your home can help determine the amount of time it will take to close. For Federal Housing Authority (FHA) or conventional loans, the average time to close is 47 days; U.S. Department of Veterans Affairs (VA) loans generally take a bit longer. There may still be ways to hurry things along by being diligent and in constant contact with your lender, however, some parts of the closing process are baked into the loan type. Down payment issues Did you budget for both the down payment and the closing costs. Maybe you had enough for both but then had to deal with an emergency. There are a number of ways down payment issues can arise, and if you’re faced with need to gather additional funds, it could put your closing date in jeopardy. Verification delays Expect your finances and employment history to be scrutinized and all the details verified when buying a home. The process is can be even more intense if you’re self-employed or if your down payment is coming from unconventional means like gift funds. Getting to the closing table in a timely manner will require cooperation from employers, bankers, landlords, and anyone else who needs to verify information. Being at their mercy is no fun, but one thing you can do to keep your closing moving forward is respond quickly to any lender requests that come your way. Irresponsible credit management Getting your pre-approval from a lender is not an invitation to go buy a car or apply for a new credit card. Doing so could derail your loan. The ding to your credit score can cause your interest rate to rise; and incurring more debt may raise your debt-to-income ratio (DTI) beyond the acceptable threshold. Quitting or losing your job Sometimes an employment change is out of your control, but you definitely don't want to willingly leave your job while you’re in escrow. Less than two years of steady employment could put your loan at risk, or at least cause a delay while your lender takes the time to figure out how your change in circumstances affects your approval and financing. Interest rate changes If you didn't lock in your interest rate and it rises during escrow, your payment may go up. In most cases, a minimal uptick won’t make that much difference, but if you were already maxing out your budget or approval amount, this could become a problem. You may be able to work with your lender to adjust the rate or it may be necessary to come up with a little more money, which could add some time to your escrow period. The home doesn’t appraise A crucial part of the escrow process is the appraisal, which is usually required during any home purchase. The appraisal is used to determine the market value of the home; if it comes in lower than the sales price, there may be some more negotiating to do. If the seller is unwilling to lower the price, you may have to pay cash for the difference between the appraisal amount and the sales price—which could be dangerous if you overpay and end up under water on the home. The title doesn’t come back clear As part of the escrow process, a title company will complete a title search on the home to make sure there are no liens on the property and that no one else can claim ownership. Uncovering title issues can push the closing by weeks or even months. Inspection issues Unless you’re planning to waive the home inspection—which is not recommended since it can leave you on the hook for expensive repairs to things you can’t see, like electrical and plumbing issues—your purchase offer will contain a contingency for an inspection. This contingency gives the buyer an “out” if the inspection uncovers serious defects; the buyer can also opt to negotiate with the seller, however, that back and forth can push the closing date. Other contingencies Your purchase contract will typically have language that spells out other conditions that have to be met in order for the sale to go through; two of the main contingencies are for loan approval and appraisal. Additionally, if you’re selling one home in order to buy a new one, your new loan is likely contingent on the sale of the other property. The seller may have his or her own set of contingencies. If any of them become problematic, it could push the closing. Termite damage Your lender will typically order a pest inspection during the escrow process, and the evidence of termites or carpenter ant damage could put a wrinkle in your closing. Repairs may have to be made before the home can close, or, in a worst-case scenario, it could kill the deal altogether. Insurability Homeowner’s insurance is required on any home that is being financed, but certain conditions can make it hard to get a policy. A major claim against the home like mold or water damage, or multiple claims filed by a previous owner, may cause insurance companies to flag the home as a risk. It can also be hard to get insurance, or at least take more time, if the home is located in a flood or disaster zone. Inflated costs on the closing statement Your lender is required by law to provide you with a loan estimate outlining the different costs related to your mortgage loan. The estimate is just that—an estimate—however it shouldn’t be too far off from the closing statement you’ll receive from the lender at least 24 hours before closing. Certain fees are allowed to change, but not by more than 10%. If you feel like you’re being overcharged, you can ask for a reduction, Or, you can change lenders—but this will definitely add time to your escrow period. Homeowner’s association fees Delinquent homeowner’s association (HOA) fees and/or fines may show up during a title search if the HOA has put a lien on the home you’re buying, but can also pop up at any time during escrow and put your closing on pause. If you can’t convince the seller to pay the fees, reduce the price of the home accordingly, or provide a closing credit, it may be up to you to pay them.  Death of the seller Yes, it happens. And if it happens to the seller while you’re in escrow, you’re looking at probate court, which can take a few months—or even a few years. Walk-through issues Even if everything else has gone smoothly throughout the escrow process, there is one more potential hurdle: the walk-through. This is your opportunity to make sure the home looks good, that any requested repairs were made, and that there is no damage to the home that may have been obscured or that is new since the last time you toured it. Any issues uncovered during the walk-through could delay the closing.   FULL STORY->

6 Home Improvement Projects You Can Begin Immediately There is no better time than the present to begin a planned home improvement project. It is easy to convince yourself you do not have the time, money, or resources needed to begin improving your home. This thought is untrue. There are many home improvement projects you can get started with right now. Update The Laundry Room The majority of laundry rooms that need to be upgraded are only in need of a few additional features to be significantly improved. Most of these features can be added or upgraded with minimal construction. From a practical standpoint, shelves and bins can be added, and a countertop can be built above the washer and dryer to add to the functionality of the laundry room. The appearance of the room can become livelier with the addition of new wallpaper or a few coats of paint. Normally, homeowners are urged to stay away from plumbing projects. However, an exception can be made for a simple project like installing a new faucet. The trick is to make sure you purchase a new faucet with the number of mounting holes best-suited for the sink. Once you are ready to install the faucet, shut off the water to the sink. Then, you only need to follow the brief instructions that come with the faucet. The entire process is no more complicated than assembling a bookshelf. Crown Molding Adding crown molding to the top of door frames and walls or applying the crown molding on wall space located above cabinets can add appeal to your home without a heavy burden on finance or labor. Crown molding not only looks good on walls but will also cover any nicks and dings that are present. Crown molding also provides the home with the custom look that generates interest from homebuyers. A crown molding project can be completed in one weekend with the use of a ladder, nail gun, pain, miter saw, and drop cloth. Furnace Installation Installing a furnace yourself is complicated and dangerous. This is something you’ll want to have a professional install because you will need the correct tools and a little knowledge regarding wiring before you get started. Maximize Kitchen Storage A wall in your kitchen can be easily optimized for storage with the addition of pegboards; pots, pans, cookware, and utensils can then be hung from the wall. Pegboard can be purchased in a variety of styles and colors so there is no need to purchase paint to give the pegboard the look you desire. Pegboard is great for adding storage space to your kitchen without losing square footage for other uses. A Bathroom Vanity A bathroom can be made to appear much more modern by installing a new vanity. The new vanity can also be used to provide the bathroom space with more storage capability and countertop space. The older vanity can be removed without too much trouble and a prefab vanity unit can be purchased and installed. A drill and drywall screws should be used to assure the vanity is securely attached to the wall. Update Lighting Modern lighting can make any room appear larger and emit a feeling of warmness. You can accomplish this goal by switching out older fixtures and replacing them with more modern models. There are many stylish replacements to choose from including bronze and copper fixtures. Chandeliers and pendants can also be used to change the feel and look of a room. Bottom Line Many homeowners delay the start of a home improvement project due to fears the project will cost more in time and resources than they are able to provide. However, there are a number of improvements all homeowners can make to their home immediately.   FULL STORY->

Moving Strategies Moving into a new house is exciting and stressful. It's easy to overlook tasks that would make the transition go more smoothly. Check out this essential list of things you shouldn't forget. FULL STORY->

Things to Consider When Moving to a New Neighborhood When looking for a new home to buy, it's very easy to overlook other facts when the home's interior is designed perfectly. The home has all the amenities you want such as smart appliances, granite countertops, spacious rooms, and that ceramic tile floor you wanted.  While the home's design and features are certainly something to consider, ultimately how long you stay in the home be influenced by the immediate surrounding neighborhood. Here are some factors to consider. Financial You may have purchased a home with an affordable mortgage interest rate; however property taxes can become a significant part of your expenses. If you moved from another state or even county, it's a good idea to find out about potential taxes or local special assessments that will affect your budget. A good way is to confirm the amount with your realtor and title company. Safety Some of the best places to find reliable information about local crime statistics are at CrimeReports, SpotCrime, NeighborhoodScout and FamilyWatchDog. You'll be able to review police activity and local trends. One good sign is if you see kids playing outside. If not, you may want to invest in a security system, wireless cameras, and put out a “Beware of Dog” sign. Access to Care On the subject of safety, is the neighborhood close to police and fire stations, emergency rooms and other pertinent services in the event of an emergency? We all know too well of a hurricane's effect on residents in Florida, Louisiana, and Texas, and fires in California. You want to have emergency personnel or shelters nearby. Convenience Important deal breakers for some people are how close it will be to their favorite eateries, grocery stores, gym, bank, shopping and volunteering opportunities. If you're used to a 1 to 2 mile convenient distance and the new home is 5 to 10 miles away, that could be a big problem. Are you a person who needs a Trader Joe's, WholeFoods or Sprouts Market nearby? If you are person that actively participates in volunteering in your community, make sure you still have that opportunity where you're moving to, especially if it's one of your passions. Did you know that a neighborhood located near numerous retail stores helps maintain or increases home value if you choose to sell later on? Schools Schools are a very important element as a home buyer. The quality of schools in the neighborhood can influence the future value of the home. By a wide margin, families prefer a highly rated school district. To determine the school's rating GreatSchools is a great source.  Neighbors Don't be nervous to be the one who starts a conversation with people, you may find yourself becoming next door neighbors. To be honest, they'll be very interested in meeting their prospective neighbors. Find out if there are block parties, how many young families are here, any people with aggressive dogs, best hangouts, their favorite local places, parks, how many years they've lived in the area, and more about the community. Some research should be done yourself, but it never hurts for a neighbor to confirm what you researched. The better you know your neighbors, the easier it is to ask them to watch your home while you're away on a trip. Sights, Sounds and Smells Identify warning signs in the neighborhood. Are homeowners maintaining their yards, does one neighbor have 10 or more unsightly cars parked outside, are there college-aged kids stationed on the street all day? Is there a cow slaughterhouse within 5 miles away? The stench can travel your way depending on the time of day. Find out Opinions of Former Residents People love sharing their opinion on places they've lived. Online discussion forums like Reddit and City-Data are good places to inquire about your new neighborhood for relevant advice from people who know best. Bonus Tip There are a few tax breaks for someone moving due to a new job or relocation. The first thing you want to do is to be sure to keep all receipts for your moving expenses so you can write it off on your taxes.  If you’re selling your home and you lived in it for more than two years, you may qualify for a capital gains tax exemption. If it’s been under two years, and your new job is 50 miles or more away from your current home you may qualify for a partial exclusion. FULL STORY->