Pre-Approval or Pre-qualification

If you’re like most potential home buyers, you’ll need a mortgage. That said, as complicated and often lengthy as the whole process is, there are a few things you can do ahead of time to make the whole thing go more smoothly. One of those things is a mortgage pre-approval (not to be mistaken for a pre-qualification). 

First, let’s talk about loan pre-qualification. The simpler of the two, a pre-qualification looks very broadly at your financial situation and gives you a general idea of how large of a loan you may qualify for. It doesn’t look at your credit report, or your financial situation in-depth. It can be a helpful step, and an opportunity to talk to a lender about your financial and home-buying goals. Since the pre-qualification process is so simple, and doesn’t take all of your financial information into account, it carries a lot less weight to a seller than a pre-approval.

A pre-approval is a much more involved process, which includes an extensive financial background and credit rating. You’ll fill out a mortgage application, and generally have to pay an application fee. This gives a specific mortgage amount for which you are approved, and at times you are able to lock in a specific interest rate. After pre-approval, you’ll receive a conditional commitment from the lender, which will allow you to look at homes at or below that price level. This is obviously a huge advantage with a seller, since you’re automatically one step further along in the process.

Another advantage to completing either of these steps is that you’ll know in advance how much you can afford, and you’ll be able to move quickly when you find the right place. In a competitive market, pre-approval can be the difference between getting the house of your dreams, or losing out. 

Periodically, we’ll write posts on some basic economics—some will be mini history lessons, so you know how we got to where we are now, others will be about things you hear on the news (which is especially important as we’re coming into an election year!), and still others will be about economic principles we think everyone should be familiar with.

Our goal is simply to give you access to understandable information, and hopefully help you to become a more confident decision-maker.

Stay tuned!

Cheap Ways to Increase Your Home's Curb Appeal

With real estate season fast approaching, here are a few quick, cheap ways to increase your home's curb appeal, according to Kiplinger:

Regardless of your budget--

1) Make a plan! Your goal is to do things that will complement and enhance the appearance of your house, not clash with it.

2) Take some time to do your research! If you're doing landscaping, make sure that the kind of plants, flowers, etc., make sense in your yard. A cactus is probably not a good choice in Wisconsin. Similarly, if your yard is shaded most of the day, don't choose plants that require lots of sunlight. Doing some research will require some time up front, but it can definitely save you money!

For $100 or less--

1) Create a welcoming entrance with a couple of large potted plants.
2) Plant a few trees.
3) Plant some wildflowers.

Remember to keep it simple--a few well-thought additions can make a big difference when you're trying to sell your house!

Spend a Little Now, Save a Lot Later--Routine Home Maintenance Tips

As healthcare costs rise, more and more people are talking about the benefits of preventative health care—exercise, healthy diet, etc. The same applies to your home; the better you maintain it, the less likely you are to have a surprise catastrophic event.  Here’s a list of things in your home that should be checked at least twice a year (unless otherwise noted) to keep things working the way they should:

 1.     Inspect water hoses on washing machine, dishwasher, and refrigerator icemaker for cracks. 

 2.     Test smoke and carbon monoxide detectors and replace batteries when necessary. Have working fire extinguishers accessible.

 3.     Have furnace, water heater, and air conditioning serviced yearly.

 4.     Drain water heater. This helps to clear any build up that may impede your water heater from functioning as it should—it should also extend its life!

 5.     Clear any debris from gutters and drainpipes. This is especially important in areas with freezing winter temperatures. You don't want an expensive repair and water (or ice!) damage to your home.

 6.     Clean humidifier and dehumidifier.

 7.     Clean fireplace and chimney. Have chimney inspected every few years or if you notice loose mortar or missing bricks.

 8.     Clean air filters and vents in your air conditioner, dryer, heating system, and fans.

 9.     Check foundation and basement for dampness or cracking.

 10.  Clean refrigerator/freezer coils, and make sure both seal properly.

 11. In addition to regularly clearing lint from your dryer’s lint catcher, scrub the lint catcher with warm soap and water a few times a year. Fabric softener makes your clothes feel soft and smell nice, but it builds up over time. An easy way to test this is to run water over your lint catcher—if it doesn’t drain through quickly, you’ve got buildup.

 12.  Clean your home regularly. Not only will this make things run more smoothly and make it a more pleasant place to live, you're more likely to notice things that need some attention.

    While this is far from an exhaustive list, here's a start. I'll add things as I think of them, and please feel  free to comment and add your own!