Author: C21Discovery Guest Blogger

5 Places You Forgot Potential Buyers Will Check

By Guest Blogger
October 15, 2015
This was originally published on the official blog of Century 21® on October 14, 2015 *

An open house is a crucial component of the home sale process. Start with these tips for staging an open house, but don’t stop there. Potential buyers are likely to inspect all areas of the house. Yes, even your “junk drawer” and closets. Here’s a list of five often forgotten places that potential homeowners may check.

The sides of your house

When you spruce up your front yard and backyard, pay attention the sides of your home as well. Potential buyers will likely look at the exterior of your house from all angles. One unkempt side may turn them off from the rest of the home. Make sure the paint and landscaping is in good condition from all angles.

Inside your closets

Don’t stuff everything in your closets and hope no one will open them. Even if the potential buyers aren’t fashionistas, they may still care about closet space. Show it off by organizing it. You wouldn’t want a potential buyer to open a closet just to find a hodgepodge of the belongings you stashed there.

Under your bed

Removing the bulk of storage from your closets is a great way to make closet space appear bigger, but that doesn’t mean your stuff should be shoved under the bed. Not only is it an eyesore, but the potential homebuyer might also see it as a sign that there is not enough storage space. Your best bet is to invest in temporary external storage space so that your open house has all the space it needs.

Inside the shower

Chances are no one wants a small, cramped bathroom. Create storage solutions that may make your space appear bigger and brighter to buyers. For example, stash toiletries and cleaning supplies in a separate closet, a dresser, or under the sink.

Your drawers and cabinets

Potential buyers will probably open drawers and cabinets. Spend time getting inspired by these home organizers. Think about all of the details like your spice rack, whether your dishes match, and finally taming your “junk drawer.” In need of more inspiration? Our Pins may help!

Go the extra mile, and don’t get caught off guard. You wouldn’t want to scream a slow motion “nooooo” as a potential buyer innocently reaches to open a closet.

*Article reprinted with permission of Century 21 Real Estate LLC.

Dealing With Multiple Offers

By Jim Stearman, Attorney at Law
August 27, 2015

In a hot real estate market, it is not uncommon for multiple offers to flood into the listing agent’s inbox. Effectively dealing with multiple offers is the sign of a good agent who is looking out for the best interests of his or her sellers. When you receive multiple offers, it is wise to get your manager involved. If a mistake is made, your clients may be put in the position of selling their house twice so you should take the extra step of protecting you and your clients before they start making phone calls to you to find out what went wrong.

By making a counter offer to all offers received, accusations of discrimination or unfairness can be avoided. The sellers, of course, have the option of accepting one of the offers or negotiating with only one or two of the buyers but, in most cases, issuing a counter offer to all prospective purchasers will usually result in a better price for the sellers.

To avoid selling the house twice, it is recommended that you use C.A.R. Form SMCO, Seller Multiple Counter Offer, when counter offers are going to be made to multiple offers. This form contains the necessary language to protect the sellers by informing the buyer that sellers are making multiple counter offers to other prospective buyers and that certain conditions must be met by the buyers for the counter offer to be deemed accepted. Many agents feel that you should not counter back on price but, instead, should ask all buyers to bring back their “best offer”. At that point, the sellers would hopefully be in a position to accept at least one of the multiple counteroffers. You can always negotiate upon terms other than price but you may lose buyers if your sellers counter with another price in response to the buyer’s “best offer” price.

When you’re representing the sellers of a home that will likely receive multiple offers, you can really help them out by getting them ready to make a good decision. Some of the things that could help them would be a review of their financial situation and to find out what is important to them. It could be that your clients would rather receive a lower offer with no contingencies that will close quicker than a higher priced offer that won’t close for several months. Just remember to tell your clients that you are there to guide them through the process and to help them get the result that is best for them but that they are the ones that will ultimately make the decision on which offer is best for their needs.

DISCLAIMER: This article has been prepared for general information purposes only. The information in this article is not legal advice. Since legal advice is dependent upon the specific circumstances of each situation, please contact an attorney for a consultation on your matter if you have any questions.

About the author: Jim Stearman is an attorney in North Orange County, California with over 35 years of experience. His areas of expertise include real estate transactions, general civil law disputes, business and commercial transactions, partnership law, corporate law and enforcement of judgments and collections. For more information about Mr. Stearman please visit his website www.jamesstearmanlaw.com.

Busted: Energy Saving Myths

By Courtney Lynch of New American Funding*
August 19, 2015
Originally Published on August 18, 2015

Everyone wants to save money on their heating and cooling bill. And with the emphasis on going green, there is a wealth of information out there that suggests various ways to cut down on energy use. However, some of those tips might not always provide the best solution for decreasing overall energy consumption.

If you have been looking to cut down your monthly energy bill, it is especially useful to also know which energy saving tips can actually work against you in addition to knowing how you can effectively conserve more energy throughout the entire year.

Here are some myths about energy-efficiency that actually cost you more:

Switching your HVAC system off while out

According to Sears Heating and Cooling, turning your HVAC system off while you are at work only to come home and blast the AC to try and bring the temperature down can actually cost you more money than just leaving the temperature at 75 degrees throughout the day.

Instead, change the thermostat a few degrees in favor of the weather to help cut down on the energy used without shutting the system off.

Keeping lights on rather than turning them on and off

While small changes in your indoor temperature are more conducive to saving energy than turning your system off and on whenever you leave and come back, leaving a lamp on all day is not energy efficient. Energy Egg, an energy-efficiency company, noted it is better to only use lamps when you need them because it does not require any extra energy to turn them on again. Leaving them on will continue to drain power and leave you with a more substantial bill.

Turn off electronics

Simply switching off your electronic devices does not mean they will stop using energy. They will continue to consume energy while still plugged into the outlet.

Consider unplugging your devices to ensure the discontinue using energy. This will decrease your monthly energy bill.

Investing in appliance updates

While Energy Star appliances help cut down on overall energy consumption, your old system might also be sufficient if properly maintained, according to Sears Heating and Cooling. Sometimes new HVAC systems can actually use a substantial amount of power.

If your old system cannot be salvaged, it is likely worthwhile to replace. However, if it still works well and just needs a tune up don’t invest in an expensive new system.

Closing HVAC system air vents

Another common misconception is closing the air vents of your HVAC unit will help improve energy-efficiency. However, this will actually force the system to work harder and drive up your energy bill.

Make sure you always keep vents open and don’t allow anything to block them while they are operating.

There are plenty of ways to help lower the cost of your monthly energy bill and become a little more eco-friendly. However, always do a little research beforehand to ensure you don’t wind up paying more.

*Article reprinted with permission from New American Funding. Licensed by the California Department of Business Oversight under the Residential Mortgage Lending Act – License #4131117 Broker Solutions Inc. dba New American Funding (NMLS #6606) Corporate Office is located at 14511 Myford Road, Suite 100, Tustin, CA 92780. 800.450.2010

For more information about loan options contact
Chris Smith NMLS# 253394 at Chris.Smith@nafinc.com
Bill FitzMaurice NMLS# 290216 Bill.Fitzmaurice@nafinc.com

Creatively Saving For A Down Payment For Your First Home

By Shantell Lorraine Nicole Russell of New American Funding*
June 8, 2015
Originally Published on June 4, 2015

Rental rates are quickly rising making it more difficult to continue affording an apartment. While purchasing a home might seem like a less expensive option, saving for a down payment on a house is likely one of the more difficult aspects of becoming a home owner. One of the common standards for a down payment is 20 percent of the total value of the home. This can add up quickly and between mountains of student debt and the entry level job market, setting aside funds can be a challenge. However, with more lenient lending standards and a few tricks, you can start saving and become one step closer to owning a home of your own.

Understand the importance of a down payment
Before you begin planning to save up some extra cash, know how a down payment impacts your ability to become a homeowner. A down payment is the money you put toward a home right away. Zillow noted that the amount you can contribute upfront can impact the type of home mortgage you qualify for and ultimately how much house you can afford. In addition, your credit score and income also contribute to the home loan you ultimately receive.

This can help you determine how much you want to save for your future home. If you would like to purchase a more expensive home, but do not have the credit score or annual income to support higher monthly mortgage payments, providing a larger down payment can help ensure you still can afford a home more congruent to your preferences. Additionally, paying less than 20 percent of the total value of the home may mean that you need to also pay mortgage insurance on a regular basis.

Mortgage insurance is a way to back up a loan in case you are unable to make payments due to your financial circumstances.

Options for low down payments
If you are interested in acquiring a home without spending a great deal of money up front, Freddie Mac and Fannie Mae, government-backed lenders, both offer loans with 3 percent down payment options.

First-time homebuyers may qualify for these affordable options depending on their ability to provide specific information and meet certain standards to avoid underwriting mortgages. For example, Freddie Mac mandates that applicants can cover the closing costs as well as the full down payment agreement. Additionally, homebuyers must enroll in a borrower education program similar to the one offered by Freddie Mac. Fannie Mae also implemented similar requirements to combat lending money to an unsuitable candidate who is unable to afford a home.

Techniques for saving money
After deciding how much money you wish to save for a down payment, USA Today recommended setting up automatic contributions to your savings account every pay period. This ensures that you are not tempted to dip into your pot and spend any of your money before putting it into your savings account. In addition, automatically sending money to your savings account is a great idea as long as you have properly budgeted for a specific amount to be contributed regularly.

Developing an adjusted budget to accommodate your new efforts is an important step to the process. Decide how much money you need for your expenses, like rent, bills, food and any debt. Then allot additional money for recreational spending.

The Daily Finance also noted it might be a smart idea to keep your savings safely stored away somewhere that it is more difficult for you to access. Consider starting a high-yield savings account or CD.

Know where to make cuts
There are a number of frivolous expenses that can add up and prevent you from saving for a down payment on a house. Below are some extra expenses you might consider reducing to help increase your savings:

Making daily coffee shop runs
Eating out regularly
Going out to the bars
Going to the movies
Taking weekend trips
Having regular manicures or pedicures
Attending concerts, plays and other performances

Add additional income
If you are ready to purchase your first home as soon as possible, you may want to increase your annual income. Consider picking up a weekend job or increasing your overtime hours at your current job. Automatically put all extra incoming money into your savings account to help quicken the growth of your future down payment. Think about doing a little freelance work to increase your total income as well.

Additionally, if you receive any extra cash, such as a tax return or birthday money from a family member, contribute that toward your savings. Money Manifesto recommended pretending that this extra income does not exist and automatically depositing the extra funds to help with your down payment fund.

Becoming a homeowner is a substantial milestone. Start saving for your down payment if you are interested in making the step toward owning your very own property.

For more information about loan options contact
Chris Smith NMLS# 253394 at Chris.Smith@nafinc.com
Bill FitzMaurice NMLS# 290216 Bill.Fitzmaurice@nafinc.com

Understanding Your FICO Score

By Courtney Lynch of New American Funding*
April 15, 2015
Originally published on March 24, 2015

Many of your financial investments depend greatly on one small three-digit number. Your FICO score dictates what kind of loans you receive and ultimately the purchase you can handle. It is important to be cognizant of your FICO score and know whether you need to make improvements to your credit.

What is a FICO score?
The National Association of Realtors noted that aFICO score determines your creditworthiness and it ranges between 300 and 850. Lenders consider borrowers with lower scores to be at a higher risk and those with higher scores to be at a lower risk. NerdWallet noted that your interest will correlate with your FICO score. Keeping your credit score low will save you money in the long run.

To determine how your credit score compares, speak with your financial adviser and know what is considered to be a good or bad score. Experian, a credit information service company, released its fifth annual credit study and 2014 showed the national average credit score increased two points from 664.

How is a credit score calculated?
The scoring model used by most lenders to determine your creditworthiness was developed by the Fair Isaac Corporation. There are a number of types of credit scores, but NAR reported most lenders prefer referencing FICO scores before providing a loan.

According to MyFICO, the scoring model uses five different categories to calculate a score. These include:

Types of credit used
New credit
Length of credit history
Amounts owed
Payment history

The types of credit used only accounts for 10 percent of how your FICO score is calculated while payment history makes a much larger and profound impact at 35 percent. Knowing which elements have the most profound effect on your score is important – especially when you want to improve your creditworthiness.

MyFICO also noted that your scores are not contingent upon your age, salary, current interest rates or whether you are enrolled in credit counseling.

Where is your score relevant?
When submitting a loan application, your credit score is always at the forefront of a lender’s mind. Given that creditworthiness determines how likely you are to pay back your loans, a good score is incredibly important when applying for a loan of any sort. Whether you are trying to obtain an auto or home loan, your FICO score can make or break you.

Freddie Mac reported that your credit is one of the most important and necessary elements of applying for a home mortgage.

What other factors may lead to a rejected loan application?
Opening multiple lines of credit and cosigning history are two additional elements lenders could potentially view as red flags, according to Bankrate.

Signing up for multiple credit cards in a short amount of time could alarm some lenders.

“That would raise some questions,” said Norm Magnuson, the vice president of public affairs for the Consumer Data Industry Association. “It could be an indicator of something that’s going on. I don’t think it’s in the best interest of any consumer to go out there and be a collector of credit lines.”

Cosigning is an additional factor that could impact whether you are approved for a loan. While you may not have to pay money when you help someone become approved for a loan, you may pay in other ways. When you cosign, you are also taking on that individual’s line of credit. If he or she does not have a good credit score, that can now be associated with your own creditworthiness.

In addition, if the individual you cosigned for decided not to make payments or turned them in late, these behaviors would count against you.

For more information about loan options contact
Chris Smith NMLS# 253394 at Chris.Smith@nafinc.com
Bill FitzMaurice NMLS# 290216 Bill.Fitzmaurice@nafinc.com

Apps for Home Buyers and Sellers

By Guest Blogger
March 31, 2015
This was originally published in the official blog of Century 21® on February 22, 2015*

When you are in the process of buying or selling a home, there are a lot of tasks that need to be handled. It can seem overwhelming, but with the right tools, you can stay organized and on top of everything that needs to be done. Luckily, there’s an app for that. Use these apps to help stay productive and organized during the home buying and selling process.

1. Evernote: Evernote is a note taking tool with lots of useful features that will help you stay organized on the go. Create separate notebooks for each step of the home buying process, for example: you could make notebooks for “Wants and Needs,” “Open House Reflections” “Financial Information,” “Closing Notes,” and more. You can even create bulleted lists, and attach photos and PDFs. Evernote syncs with all of your devices so you always have access to what you need.

2. Dropbox: Dropbox is essential for storing and organizing documents and paperwork. You have easy access to everything you need with the click of a button! Share documents or entire folders with your home buying team instantly so you’re always on the same page. Just like Evernote, Dropbox is able to sync with all electronics, giving you complete access to what you need!

3. CENTURY 21^® Real Estate: Our app allows you to quickly find listings, sales associates, and nearby open houses. The app is GPS enabled so you can search listings specifically targeted for your location. You can also search based on price range, features, estimated taxes, square footage, and much more.

4. AroundMe: Learn about your potential new neighborhood. AroundMe[MH1] uses GPS to determine your location and in an instant, you’re able to see how close everything, from gas stations to movie theaters, is to the potential home.

These apps will help you stay organized and productive during your home buying or selling process.

*Article reprinted with permission of Century 21 Real Estate LLC.

Saving Money on Your Mortgage

By Shantell Lorraine Nicole Russell of New American Funding*
March 22, 2015
Originally Published on March 19, 2015

Everyone loves saving money and your monthly mortgage payment is no exception. When you apply for a home loan or are thinking about refinancing, there are a few things you should consider to keep your payments more affordable.

Providing a larger down payment
While government-sponsored enterprises Freddie Mac and Fannie Mae are now offering loans with a 3 percent down payment option, paying more money up front can help keep your interest rates and monthly bill lower. Credit.com also noted that you can pay off your mortgage faster and this can leave you with the ability to access more spending money in the future.

Deciding on the right mortgage
There are a number of options available to individuals interested in purchasing a new home. The two main types of loans available are fixed- and adjustable-rate mortgages. According to Nerd Wallet, FRMs guarantee a specific interest rate over the course of the loan’s life. This is a great long-term option that you can easily organize your finances around. An ARM offers a lower introductory rate, but after a pre-determined amount of time the interest rate can fluctuate with the market.

Deciding on the best loan option for you depends on what type of loan fits your situation. You may not intend to use this mortgage toward your forever home. Perhaps you know that you are hoping to sell the house in the next five or 10 years. In this instance, an ARM with a lower interest rate would save you more money. However, if you are investing in a home you do not intend to move out of any time soon, an FRM might be a more dependable and ultimately more affordable option.

Lender-paid and borrower-paid mortgage insurance
Mortgage insurance provides protection for lenders if an individual is unable to pay back a loan. Zillow noted that there can be differences in the payments and rates associated with borrower-paid PMI and lender-paid PMI. Ensure that you consider the total monthly cost of PMI after tax deductions to decide which option is most cost-effective for you.

Shopping around for a mortgage
Before buying a new television, people usually check a few stores, browse the Internet and conduct a little research of their own. When you decide to purchase a new home, your hunt should be just as thorough, if not more intense to ensure you are getting the best deal. Bankrate noted that you can either shop for a loan yourself or hire a broker to do the hunting for you. If you decide to hire a broker, ask to speak with his or her clients before. They can offer you insight about the services he or she was able to provide for them.

You may also want to speak with your real estate agent about different lenders. He or she can direct you to a variety of options available and you can begin shopping for the best deal.

Consider paying extra
U.S. News and World Report suggested adding an extra payment each year. The additional payments are put toward your principal and help bring down the total amount you owe on your home and you will not have to pay as much interest on that total.

Making more payments on your mortgage now can ultimately save you more money on the total amount that you owe lenders. For example, if your current mortgage is $200,000 with a six percent interest rate on a 30-year FRM and you made one extra payment of $1,199 each year, you could not only save $47,000 but also cut five years off of your 30-year commitment.

Take a look at your current financial situation and determine whether this is a viable option for you.

Refinancing your mortgage to save money
While interest rates on home loans are low, you may find that refinancing is an increasingly appealing option. However, U.S. News and World Report noted that before you jump the gun and decide to refinance your home, you should calculate long term savings and the closing costs and fees you may accrue.

You should only move forward with this process if you have done the math and see that the savings make it worthwhile.

Another factor to consider is whether you are currently a good candidate for a new mortgage. Make sure that your credit score is healthy and you will qualify for a lower interest rate.
If you decide to refinance, remember that you should look at a few different lenders before committing. It is important that you find the best deal available.

Saving money is always helpful. Finding new ways to help with the cost of your mortgage can help your financial situation a great deal. Reach out to a professional, consider your options and make a plan to help you save money on your monthly payments.

For more information about loan options contact
Chris Smith NMLS# 253394 at Chris.Smith@nafinc.com
Bill FitzMaurice NMLS# 290216 Bill.Fitzmaurice@nafinc.com

Share this:

Share this:

Switching your HVAC system off while out

Keeping lights on rather than turning them on and off

Turn off electronics

Investing in appliance updates

Closing HVAC system air vents

Share this:

Share this:

Share this:

Share this:

Share this: