| CONSUMER TIPS FROM “NAHB HOUSEKEYS PUBLICATION” |
Americans Say Housing Strengthens Communities
Americans still believe that a strong housing industry means more jobs and more money to keep local economies growing, and that the government should continue to promote homeownership through tax incentives.
A new survey found that nearly three out of four American voters—73 percent—believe that it is reasonable and appropriate for the federal government to provide tax incentives to promote homeownership.
And 81 percent of voters are convinced we should do more to improve the housing finance system because we need policies that encourage homeownership if we want to rebuild the middle class.
“Every new single-family home built creates three full-time jobs and increases the property tax base that supports local schools,” said National Association of Home Builders (NAHB) Chairman Bob Nielsen, a home builder from Reno, Nev. “The American public recognizes that to restore the health of the economy, we need policies that support opportunities for homeownership.”
The poll, which was conducted on behalf of NAHB, also found that an overwhelming majority of respondents oppose eliminating the mortgage interest deduction and would be less likely to support a candidate for Congress who wants to do away with this vital tax incentive.
“Despite the current housing downturn, Americans still see homeownership as a key building block of being in the middle class and creating strong jobs in their communities,” said Celinda Lake, president of Lake Research Partners, which conducted the survey along with Public Opinion Strategies.
Other key survey findings include:
- 75 percent of voters say that owning a home is the best long term investment they can make.
- 73 percent of voters who do not now own a home say that it is a goal of theirs to eventually buy a home.
- Among voters who are aware of proposals under consideration by Washington policymakers to raise the down payment requirements for a home loan, 92 percent believe it will make it more difficult to buy a home.
Neil Newhouse, partner and co-founder of Public Opinion Strategies, said, “The administration and some in Congress are floating plans to curtail or even abolish the mortgage interest deduction and impose changes that would make it much more difficult and expensive to get a home loan. This is in direct opposition to the views of most Americans, who want the government to encourage growth in the housing market and to maintain tax incentives to keep housing affordable.”
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| Advice on Financing Your First Home |
Buying your first house can be very exciting. But financing your home purchase can be a daunting experience. In both cases, do your research and shop carefully to ensure you find exactly what you want and need.
Deciding how much to spend on your home and which type of mortgage will work best for you — as well as understanding the settlement process — can be confusing. However, there are many sources that can help you get prepared well before you step foot into a sales office, model home or open house.
- Get familiar with the lingo. NAHB’s Home Buyer’s Dictionary can help you.
- Figure out what you can actually afford to pay on a monthly basis. When determining the monthly payment you can afford, remember that, in addition to the monthly principal and interest, you will also be paying into escrows for property taxes, hazard insurance and possibly a homeowners or condominium association assessment. You have more knowledge about your living expenses than a lender. Hold firm with that number and don’t be tempted to agree to an amount higher than what you are comfortable spending. Mortgage calculators are a great way to figure out what your monthly payments would be based on interest rates and down payment amounts. Calculators can be found on most real-estate-focused websites.
- Pay down your debts. Debt that you carry on your credit cards will limit what you qualify for from a lender. Lenders want to see a total debt service ratio that is less than 40 percent of your monthly income.
- Attend a first-time home buying seminar or talk to a credit counselor who does not work for a lender. You can research your options without being influenced by someone who has a financial interest in the home or loan you choose. The U.S. Department of Housing and Urban Development (HUD) offers free housing counseling and seminars.
- HUD also has a handy booklet on its site called “Buying Your Home: Settlement Costs and Helpful Information.” It describes the home buying and settlement process and explains most of the expenses you will encounter. It is free and most lenders are required to provide their loan applicants with a copy of this document under the Real Estate Settlement Procedures Act (RESPA). However, you will be able to shop more wisely for settlement services if you have read the pamphlet before you visit a lender.
- When you have done your research and are ready to move on to the next step, visit a lender, understand the loan choices that would be available to you, and, once you’ve determined the most suitable loan, get pre-approved for that loan. Since you will already know how much money you can borrow, you will know what price range you should be looking at and can move quickly if you are bidding on a house that has several interested buyers. A lender’s pre-approval would still be subject to a final verification of your credit and a satisfactory appraisal, but it’s a big step toward becoming a home owner.
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| Are You Prepared for an Emergency? |
The past few months have shown that natural or man-made disasters can hit any family at any time. Ensuring the personal safety of you and your loved ones is your number one priority. But being prepared for the aftermath by organizing your critical documents and communicating their location to designated individuals can save you many problems later should the unexpected occur.
Could you locate all your family’s important documents quickly in the event of an accident, evacuation or disaster? Or could they find them should you be incapacitated or become separated from each other? If not, here are some important steps to take.
It’s a good idea to keep document originals in one location, with backup copies stored in at least one additional, equally secure place. A fire- and waterproof box that can be locked and is small enough to carry is a good way to keep documents nearby, but safe from damage or theft. A safe deposit box at a bank is another secure location. Copies can also be stored with a family member or friend.
Critical documents that you should be able to quickly access include:
- Passports, birth certificates and social security cards
- List of insurance policies, policy numbers and contact information
- Copies of wills, living wills, power of attorneys and healthcare proxies
- List of bank, retirement and investment accounts, account numbers and contact information
- Titles to your car or home and sales receipts or proof of ownership of other high-value items
- List of loan or debt obligations such as mortgages or credit cards, account numbers, balances and contact information
Other documents to think about collecting, making copies of and storing in a central location include medical histories, physicians’ contact information, dental records, past years’ tax filings, and Internet account user IDs and passwords.
While paper copies may take up a lot of space, scanning originals and saving them on a portable storage device such as a memory stick or CD-ROM is a convenient alternative.
A videotape — also copied and stored in multiple locations — is a good way to record your material possessions, and will help you remember everything and prove ownership for insurance claims if your property is destroyed. Be sure to get close-ups of serial numbers, and talk about the purchase date and price of each item as you record.
Finally, it is especially important to let a trusted family member or friend know where your important documents are so that they can access them and take action should you be unable to temporarily, or in the worst case, permanently. While no one likes to think about the implications of a personal or community disaster, taking these steps will help you minimize the impact.
For other disaster preparedness tips, go to www.ready.gov.
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More than 6,000 Certified Green Professional builders and remodelers nationwide are ready to help you make decisions about energy and water efficiency, ventilation and using resources wisely for your new home or remodeling project. Cut and Paste the link to your address bar to find a Certified Green Professional: http://www.nahb.org/directory.aspx?sectionID=667&directoryID=1415 ____________________________________________________________
When you first move into your new home, you wonder how you are going to fill up the large, empty space. Pretty soon life takes over — and before you know it, you are wondering where all of that space went. If you find yourself struggling to find room to store everything you’ve accumulated over the years, see if these storage options might work for you. Do An Audit Before you invest a lot of time deciding where things should go, look through your closet, files and drawers to determine what can be thrown or given away. For clothes, it is a good rule of thumb to get rid of items that you have not worn in more than 12 months. A lot of your household financial documents and papers may be available online through the provider company’s website. If that is the case, discard old financial statements or bills that you can more easily access electronically. Invest in a paper shredder for these documents to protect your identity and accounts. It is very easy to allow cabinets and drawers to become cluttered over time, especially when you have to do a quick cleaning of your home when you have surprise visitors. Declutter those drawers periodically to keep from accumulating outdated flyers, menus, magazines and newspapers. This will open them up so you can store more day-to-day items that you need to quickly reach. Buy Furniture That Doubles as Storage If you are looking to replace old, worn-out furniture in your home, buy pieces that also can serve as storage. Consider a coffee table that has drawers or an ottoman that can open up and double as a spot to store your blankets. Make Use of Wasted Square Footage In closets and in the kitchen,use all of the space that is available to you. Often home owners are giving up valuable square footage if they don’t install cabinets or shelves that go up to the ceiling. Store items that are either out of season or that are rarely accessed — such as holiday decorations — on the higher shelves where they are out of the way. This will free up the lower shelves to allow you to get to the things that you use on a regular basis. Bed Risers By simply raising the height of your bed a few more inches, you can gain a lot more storage space that is also hidden away. Bed risers can be found in home design and improvement stores in different shapes, styles, textures and colors to complement your current bedroom furniture. They are inexpensive and not only give you added storage space, but will also give your bedroom a new look. _________________________________________________________________ ‘Tis the Season for Giving … And for Taking: Protect Your This year’s holiday season promises to be as busy and Nearly 400,000 burglaries occur in the United States in November and December each year, according to the FBI. The National Crime Prevention Council recommends home owners take extra precautions to protect their homes during the holidays, due to the many home invasions at this time of year. “During the holidays, homes are often filled with expensive gifts, the good silver is out and people are in a festive mood — they aren’t thinking about home security the way they should,” says John Heppner, President and CEO of Fortune Brands Storage and Security, including Master Lock Company L.L.C. “In addition, the busy holiday pace of parties, shopping and events leaves many homes dark and empty more often than at other times of the year. Whether home owners are out or justasleep upstairs, the spoils of holiday-timed thefts are just too tempting formany burglars.” A few proactive measures and common sense can prevent your holiday season from being wrecked by a break-in. Follow these tips and enjoy a safer and happier holiday season. First and foremost, lock up! Whether it’s a short trip to the grocery store or a longer haul to finish some holiday shopping, make sure your doors and windows are securely locked. Never leave boxes from expensive gifts laying on the curb for trash pickup. Consider crushing them and placing them in a large, black garbage bag. “Break down boxes from expensive gifts and turn them inside out” John Lisle, a spokesman for the Arlington County Police Department in Arlington, Va. says. Remember that nothing is more effective at deterring a burglar than the impression that the home is occupied. Make it look like it is by installing timers on your lights. “Have a friend or a neighbor collect your mail,” Lisle says. He also recommends temporarily stopping newspaper and mail service if your neighbors can’t help you out. Store valuables like jewelry in a secure place; a home safecan be a great option for storing various valuables including important homeand family-related documents. Keep your garage door closed at all times. Garage doors are a favorite point of entry for burglars. Keep the door from your garage into your home locked as well. Be sure that your trees and shrubs don’t hide windows and doors. Blocked entrances can make it easier for burglars to get into your home unnoticed by neighbors and passers-by. Leave spare keys only with trusted family members or neighbors you are close to. Do not hide them outside. Burglars are smart enough to look around and know the common places people hide keys. Be certain that tools, ladders and other objects that could be used to break into your home are securely locked up inside the house. If you will be away for a lengthy period, entertain the idea of a house sitter. It may turn out to be well worth the money. You may also want to consider a home security system. Check online or look in your phone book to find companies specializing in home security. Most experts agree that your neighbors are your best defense. Get to know them and chances are they will be more likely to watch for suspicious activity around your home while you’re away. Break-ins can be easily avoided by taking the proper precautions . So be prepared, make wise decisions and relax. While the holidays can be stressful, by following these tips, you’ll find yourself more at ease and ready to celebrate the season. __________________________________________________________________
Which home remodeling Americans spent more than $114 billion on home remodeling in 2009, according to the NationalAssociation of Home Builders (NAHB). Remodeling is expected to outpace new home building in about 10 years. But all home remodeling projects are not equal. Here are some top ways to add value to your home: A Home Office Remodel Home offices are becoming less of a luxury and more of a necessity, with more people telecommuting. The number of Americans that work from home is in the millions, and that number has continued to grow every year. With many companies cutting costs and becoming more aware of their carbon footprints, telecommuting has become a viable solution for many in the working world. Making sure that yourhome has a state-of-the-art space for potential teleworkers is a surefire way to increase your home’s value. Renovate or Add a Family Room With open floor plans becoming more in demand, a family room is an excellent way to make existing homes more like new construction. Remember, it’s a good idea to keep in mind what homes in your area are like. People like to purchase homes that blend with other homes around them. Chances are you’ll find many of your neighbors are investing in family rooms as well. Replace the Roof The roof is one of the first impressions people have of a home. Make sure yours passes the test by replacing an old roof. You can also change the character of your home by looking into architecturally styled roofing tiles. Landscape Your Yard Along the same lines of thinking as the roof, landscaping can give a great – or not so great – first impression. Backyard landscaping can transform ordinary spaces into incredible entertaining areas by including elegant water features and lush plants. Consider your area’s climate. If you live in an area that receives temperate weather year-round, you’ll find that your new landscaped yard adds value to your home and increases your living space. Replace Old Windows Thirty percent of a home’s energy is lost through its windows. Replacing old windows with energy-efficient ones signals to home buyers that you really care about the house and it reflects on the quality of the house as a whole. Plus, who doesn’t like to save money on energy bills? Remodel Your Basement Look at space you already have. Do you have unused space that serves as a black hole for all things without a home? Try remodeling your basement. Remodeled basements can make excellent game rooms or guest suites, adding value to your home without adding space. Paint, Paint, Paint Enough said. But remember to hire a professional if you need help and keep the colors neutral if you’re looking to sell. Nothing looks worse than a poorly done paint job in bright fuchsia. Remodel Your Kitchen Small changes can result in big value. Upgrading appliances, door handles and painting tired walls can add new life to your kitchen, and add value to your home. The general rule when doing a remodel is not to overdo it… unless it’s the kitchen. a kitchen remodel is a long-term investment; you’ll see payback 10 years down the road. And if you are a DIYer, know your limits. Sometimes doing it yourself can save money, but always bring in a professional for the big jobs. Remodel or Add a Bathroom A bathroom remodel can often mean simply making the most of your current space, by upgrading fixtures, flooring and lighting. Have a little more money in the budget? Adding a bathroom is a great way to increase the value of your home. Is your only bathroom upstairs and not convenient for dinner guests? Often the area under a set of stairs is the perfect place for a powder room. __________________________________________________________________
When you bought your home, you took out an insurance policy to cover the house and all of your family’s belongings inside. But was that the last time you thought about your insurance coverage? Home owners insurance includes insurance on the actual structure and the contents inside. The structural part of the package generally covers damage such as fire and smoke, lightning, wind and hail storms, vehicles, explosion, and aircraft or other falling objects. The package should also include coverage for theft, vandalism, riot or civil commotion, freezing or sudden water escape from the plumbing system or appliances, glass breakage, and sudden tearing of heating or cooling systems. A comprehensive home owner’s policy should cover your home, any structure attached to it such as a porch or garage and any unattached buildings on your property that are not used for business or rented to others. Damage caused by flooding, earthquakes andhurricanes are not covered by your regular home owner’s policy. Your insurance agent can provide you with information about coverage of these natural disasters. The personal property portion of the insurance package protects things in your home like clothes and furniture. It should also provide protection for your personal property while you are away from home, the things you take with you on vacation. The amount of insurance on your personal property is equal to a percentage of the amount of insurance on your home (usually 55 percent). However, it is important that you know that special limits may apply to certain types of personal property. For example, money bank note and rare coins, securities, stamp collections, jewelry and wall hangings. Higher limits on most of these items are available through upgrades on thepolicy or by taking out a separate policy for the items. Check to see that your policy is written for replacement costs and you may want to consider inflationcoverage. Replacement cost coverage on your personal property means that the insurance will pay to repair or replace your personal property that is covered. and to replace it today would cost you $200, the insurance would pay $200. Inflation coverage automatically increases the amount of your insurance coverage on your home and personal property as inflation changes the cost of replacing your property. The changes are based on the movement of an inflation index and are reflected in thepremium on each renewal. But how do you know if you have too little or too much insurance? Start with a home inventory to help you assess your insurance needs. First you need to know how much it would cost to rebuild your house today on your existing lot. Ask your builder what the market rate is per square foot to rebuild your house. Multiply that times the square footage of your house and that’s how much insurance coverage you should have. The amount of your personal property coverage is a percentage of that amount (normally 55 percent and can be upgraded to 75 percent). For your belongings inventory, list every item in your home, attic and garage, when you bought it, its original cost and its estimated value. It also helps to have photographs or a videotape of your possessions. Have a couple of sets of the photos or videos made. Keep one copy in a fireproof safe at home or a safety deposit box. Marking your items with a personal identification number such as the last four digits of your social security number (don’t put your full number as that will make you vunerable to identity theft) will make reclaiming any stolen items easier. If you ever need to file a claim, the inventory will make it easier and ensure that you are compensated for virtually everything. If it’s not on your list when you file a claim, you won’t be compensated for something that you’ve paid for years to home inventory guide or advice on how to best organize your list if you should ever need to file a claim with them. A home owner’s policy will also include “personal liability” coverage. That is, the insurance provides payments for bodily injury or property damage for which you or a relative who lives with you may be legally responsible. For example, if someone is accidentally injured on your premises, such as falling down stairs and breaking a leg, or if your ladder falls over on your neighbors car and damages it. Personal liability also include s medical payments to others,meaning that if someone is accidentally injured on your property or is accidentally injured by you or a relative who lives with you, the insurance will cover medical expense to a certain limit. In case of a legal matter, your personal liability coverage includes the cost of defending you, whether you are liable or not, against an insured or covered law suits. About one out of every three home owners has proper insurance coverage. Take some time today to make sure you are one of them. |
