When reviewing a home loan, lenders apply a special formula to help them determine how much of a loan a home buyer is qualified for. Known as a debt-to-income ratio, this formula allows them to determine how much money they can safely loan you toward a home purchase or mortgage refinancing. Everyone knows their credit score is an important factor in qualifying for a loan. But in reality, the DTI is every bit as important as the credit score.

Lenders typically apply a standard "28/36 rule" to your debt-to-income ratio to determine whether you’re loan-worthy. The first number, 28, is the maximum percentage of your gross monthly income that the lender will allow for housing expenses. The total includes payments on the mortgage loan, mortgage insurance, fire insurance, property taxes, and homeowner’s association dues. This is usually called PITI, which stands for principal, interest, taxes, and insurance.

The second number, 36, refers to the maximum percentage of your gross monthly income the lender will allow for housing expenses PLUS recurring debt. When they calculate your recurring debt, they will include credit card payments, child support, car loans, and other obligations that are not short-term.

Let’s say your gross earnings are $4,000 per month. $4,000 times 28% equals $1,120. So that is the maximum PITI, or housing expense, that a typical lender will allow for a conventional mortgage loan. In other words, the 28 figure determines how much house you can afford.

Now, $4,000 times 36% is $1,440. This figure represents the TOTAL debt load that the lender will permit. $1,440 minus $1,120 is $320. So if your monthly obligations on recurring debt exceed $320, the size of the mortgage you’ll qualify for will decrease proportionally. If you are paying $600 per month on recurring debt, for example, instead of $320, your PITI must be reduced to $840 or less. That translates to a much smaller loan and a lot less house.

Bear in mind that your car payment has to come out of that difference between 28% and 36%, so in our example, the car payment must be included in the $320. It doesn’t take much these days to reach a $300/month car payment, even for a modest vehicle, so that doesn't leave a whole lot of room for other types of debt.

The moral of the story here is that too much debt can ruin your chances of qualifying for a home mortgage. Remember, the debt-to-income ratio is something that lenders look at separately from your credit history. That's because your credit score only reflects your payment history. It's a measurement of how responsibly you've managed your use of credit. But your credit score does not take into account your level of income. That's why the DTI is treated separately as a critical filter on loan applications. So even if you have a PERFECT payment history, but the mortgage you've applied for would cause you to exceed the 36% limit, you'll still be turned down for the loan by reputable Westfield lenders.

The 28/36 rule for debt-to-income ratio is a benchmark that has worked well in the mortgage industry for years. Unfortunately, with the recent boom in real estate prices, lenders have been forced to get more "creative" in their lending practices. Whenever you hear the term "creative" in connection with loans or financing, just substitute "riskier" and you'll have the true picture. Naturally, the extra risk is shifted to the consumer, not the lender.

Mortgages used to be pretty simple to understand: You paid a fixed rate of interest for 30 years, or maybe 15 years. Today, mortgages come in a variety of flavors, such as adjustable-rate, 40-year, interest-only, option-adjustable, or piggyback mortgages, each of which may be structured in a number of ways.

The whole idea behind all these newer types of mortgages is to shoehorn people into qualifying for loans based on their debt-to-income ratio. "It's all about the payment," seems to be the prevailing view in the mortgage industry. That's fine if your payment is fixed for 30 years. But what happens to your adjustable rate mortgage if interest rates rise? Your monthly payment will go up, and you might quickly exceed the safety limit of the old 28/36 rule.

Many of these mortgage products are fine as long as interest rates don't climb too far or too fast, and also as long as real estate prices continue to appreciate at a healthy pace. But make sure you understand the worst-case scenario before taking on one of these complicated loans. The 28/36 rule for debt-to-income has been around so long simply because it works to keep people out of risky loans.

Most recently, rising unemployment, problems on Wall Street -- and a worldwide recession --  have made low-risk loans such as those available through the FHA especially appealing.  Quite frankly, FHA mortgages are possibly the best financial alternative today for just about anyone considering the purchase or refinancing of real estate.

First, you can get a fixed-rate loan at a decent rate. This is very important because unprecedented government spending and balance-of-payments deficits could cause inflation and the devaluation of the dollar — bad news for those with adjustable-rate loans. If inflation becomes an issue loan rates and monthly payments will soar for ARM borrowers.

Second, there is no prepayment penalty or other funny business.

Third, HUD, to its credit, tries to help FHA borrowers who run into hard times.

Fourth, the application process is very clear: You have to provide paperwork and verifications, the way loans should always be underwritten.

Fifth, you can buy with 3.5 percent down.

Whatever loan program you decide on, make sure you understand exactly how far or how fast your loan payment can increase before accepting anything other than a fixed-rate mortgage. If your DTI disqualifies you for a conventional 30-year fixed rate mortgage, then you should think twice before squeezing yourself into an adjustable rate mortgage just to keep the payment manageable.

Instead, think in terms of increasing your initial down payment on the property in order to lower the amount you'll need to finance. It may take you longer to get into your dream home by using this more conservative approach, but that's certainly better than losing that dream home to foreclosure because increasing monthly payments have driven your debt-to-income ratio sky-high.

Two burning questions realtors often nervously face from home buyers concern the quality of a community’s schools and the relative “safeness” of a particular town or neighborhood. 

Unfortunately, fair-housing laws forbid agents from discussing neighborhood demographics and providing information that could be considered “steering” (i.e, directing a client to or away from a particular property and/ or neighborhood in a discriminatory manner), so many agents either dodge such questions altogether -- or  offer vague, generalized comments designed to insure they do not stray outside the law. 

The quality of school systems, however, and the safeness of a town and/or neighborhood are obviously of profound importance to home-buying families. So how do buyers obtain such information without guidance from a realtor?  

 Fortunately, thanks to the web, there exist a variety of sources buyers can use to gather such information on their own.

The National Center for Education Statistics  offers a national database of school demographic information. By clicking on the "School, College, & Library Search" tab at the top visitors can view data including a particular school's student-to-teacher ratio or enrollment by race and ethnicity.

Prospective homeowners can also browse the School Matters website, which provides snapshots of academic performance among various schools.

Great Schools a free, interactive community, allows parents, educators and students to post comments about the schools in a city.  Great Schools’ independent 1 through 10 rating system is based solely on community feedback. While schools get an overall rating of 1 through 10, there are also individual ratings based on grade levels and other special consideration. On the main profile page of each school, you can view parent reviews, see recent test scores to learn about the school environment.

For more objective, statistical data, homebuyers can consult the New Jersey School Report, an annual report produced each year by the New Jersey Department of Education. The Report Card presents thirty-five fields of information for each school in the following categories: school environment, students, student performance indicators, staff, and district finances.. The report cards, established by legislation in 1995, are produced for all elementary and secondary schools, as well as vocational schools, special education schools, charter schools, and Special Services School Districts.

Additionally, prospective homeowners can review  New Jersey's Statewide Assessment Report  the state’s annual summary of results for the assessments administered in the spring of each year.  In addition to the complete reporting of proficiency levels for each test at each grade level, there are highlights and trend information contained in graphs and charts for each test in Language Arts Literacy (LAL) and mathematics  The Office of State Assessments (OSA) coordinates the development and implementation of New Jersey’s statewide assessment program, which is designed to measure student attainment of New Jersey’s Core Curriculum Content Standards. The OSA works collaboratively within the department and with school districts to collect and report information about student academic achievement in order to inform instruction, increase student learning, and help parents and the public assess the effectiveness of their schools.

Still more information can be mined at City Data Forums  which are full of local residents and people who are looking to move. Navigate to the part of the forum related to your new home town and inquire about schools. In most cases, you’ll get a detailed answer to your question from residents of the area.

City Data also provides detailed demographic information on each town, which you can also find at the U.S. Census Bureau's Web site. The Census Bureau’s Quick Facts page breaks down such information easily, by city and county, and provides useful socioeconomic data..

To measure the relative safeness of a community, home buyers can use available crime statistics, such as those found at CityRating.com. which offers crime rate information for hundreds of cities and metropolitan areas.

Likewise, homebuyers can also consult the annual Uniform Crime Report, prepared by the New Jersey State Police, which is based on information provided by municipal, county and state law enforcement agencies. The latest report records offenses from January 1, 2008 through December 31, 2008 and can be found here.

Finally, even though a wealth of information exists online, there are some questions best answered by simply walking around the area and making a note of your observations. This applies both in assessing the quality of a school or the relative safeness of a neighborhood.

If after reviewing the school data for a particular community, for instance, you still find yourself uncertain as to which school to chose, schedule an appointment with the principal and ask for a tour. Observing how the teachers interact with their students, and speaking with some of the parents, may make you infinitely more comfortable (and confident) in making a final decision.

And while crime statistics can be helpful, so can the personal experiences and opinions of many long-term residents. Once you’ve found a neighborhood you like, introduce yourself to some the local residents; they are often a great (and frank) source of information. Find out what their general perception of the neighborhood is, and if that perception has changed significantly since they first moved there, and why. Insights into community life gained from such brief interactions can often be invaluable.

Negotiating the price of your home can be a strenuous process.  How do you know you are getting the best price for your new home.  There are many ways to help put you in control of the negotiating process while still creating a win/win situation for yourself and the seller.

There are two places to negotiate.  One is on the loan itself.  The other is on the purchase details of the house you will be buying.

Now a lot of people in the United States -- especially in New Jersey -- are not used to negotiating.  We get very used to going to the store and paying the given price tag on the item we are purchasing.

With your home there is a lot more to consider.  The deal you negotiate will determine what you may be paying for the next 360 months.  You want to be comfortable with the payment you will be making and it is determined by the
purchase price you agree on.

Think of it this way.  You could be knocking thousands of dollars off the overall payments on your house with each point you negotiate in your favor.  So here are some tips that can help you in negotiating the best price for your home.

1.On your first offer, offer less than the asking price.  In most cases houses sell for less than what is being asked for.   In general you can ask for around 5% off the purchase price.  Always ask for more off than you want to pay.  Many times negotiations will end up right in the middle of the asking price and the first offer because you have bracketed their price.

2 .Look at many houses before making an offer to get a feel for what houses are selling for.  The more research you do on homes that have recently sold in the area you want to buy, the better armed you will be when you come across a house that you want to make an offer on.

This will also help you to determine when you come across a bargain.  Every once in a while someone will put their property on the market under the fair market value for a quick sale.

In this case it is best not to jump on the property and get your offer in.  You will want to put in your contract that the property purchase is subject to a home inspection.

If you decide later that this isn’t the house for you or the home inspection uncovers some other problems with the house (sometimes what looks like a bargain can end up being a money pit) you can get out of the contract and keep on searching for another property.

3.This brings up another negotiating point.  There are generally two times you have to negotiate.  Your second negotiation comes after having a home inspection done.

Home inspections usually turn up unseen problems with the property.  If after the home inspection you decide you are ready to move forward you can either move forward with the contract you already agreed upon or you can renegotiate based on any problems or defects that were found during the home inspection.

4.Always make it a win/win situation.  You want to make sure everyone is happy with the transaction.  A good negotiator always leaves the other party thinking they won the negotiation.

5.Always ask for more than you want.  Maybe the roof really needs to be replaced and so you decide to ask for that in your offer.  If that is the only point that is to be decided then someone has to lose.  As soon as there is only one point to negotiate over someone has to concede.

As long as there are multiple items to negotiate over there is still room for each party to win in the negotiation.

Instead you can ask for additional items. You could lower the purchase price $3000 and ask to add the existing appliances to the sale.

The other party has no idea you only want a new roof.  You now have two items to concede to the seller so that they feel they got the best of the negotiation.  (You asked for three items and only got one.)  And you get what you want.  This is all part of a win/win negotiation.

There is a saying that “if you don’t ask you don’t get.”  You may be surprised and get more than you bargained for in a negotiation.  Maybe the seller is really anxious to sell and will accept your offer as is.  It is always possible to get a better deal on a house  than you would settle on.

6.Always weigh how much you actually want the house and how long the house has been on the market against what you are willing to offer.  There is almost always more activity around a house when it first goes on the market or when it first gets listed. 

If you do fall in love with a house and the price looks right you may just want to make your negotiation be offering a full priced offer on the house before someone else beats you to it.

New Jersey Insurance is a highly competitive business and the price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying NJ homeowners insurance.

Be sure to shop around.

It'll take a few phone calls, but they could save you a good sum of money. Ask your friends, check the yellow pages or call your state insurance department (phone numbers are on the back page of this brochure). Also check consumer guides, insurance agents and companies. This will give you an idea of price ranges and tell you which companies or agents have the lowest prices..

Raise your deductible.

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay according to the terms of your policy. Deductibles on homeowners policies typically start at $250. By increasing your deductible to $500, you could save up to 12 percent; $1,000, up to 24 percent; $2,500, up to 30 percent; and $5,000, up to 37 percent, depending, of course, on your insurance company.

Buy your home and auto policies from the same insurer.

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.

When you buy a home...

Consider how much insuring it will cost. Because a new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house, insurers may offer you a discount of 8 to 15 percent if your house is new.

Insure your house, not the land.

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should.

New Jersey Insurance is a highly competitive business and the price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying NJ homeowners insurance.

Be sure to shop around.

It'll take a few phone calls, but they could save you a good sum of money. Ask your friends, check the yellow pages or call your state insurance department (phone numbers are on the back page of this brochure). Also check consumer guides, insurance agents and companies. This will give you an idea of price ranges and tell you which companies or agents have the lowest prices..

Raise your deductible.

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay according to the terms of your policy. Deductibles on homeowners policies typically start at $250. By increasing your deductible to $500, you could save up to 12 percent; $1,000, up to 24 percent; $2,500, up to 30 percent; and $5,000, up to 37 percent, depending, of course, on your insurance company.

Buy your home and auto policies from the same insurer.

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.

When you buy a home...

Consider how much insuring it will cost. Because a new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house, insurers may offer you a discount of 8 to 15 percent if your house is new.

Insure your house, not the land.

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should.

There are some great stories from people that have bought a condo and settled down in it. While some people will tell you that they are not as good as owning your own home, others insist that a condo is the best thing they ever bought into. Here are a few points to think about if you are considering buying a condo.

Community spirit

You will be part of a community when you purchase a condo: a part of a group that has the purpose of keeping their living area up to a certain standard. In most cases you’ll be part of an HOA in Westfield New Jersey and have to pay fees to keep the area clean and upgraded, but this is just money you would have had to otherwise spend on lawn maintenance and other forms of upkeep.

HOA

A homeowners association sets basic rules for the members that are enforced by the members. This can mean problems only if you disagree with any of them. A HOA works great for people that have thoroughly read through the expectations of that Westfield New Jersey association and agrees with them. The only time something usually goes wrong is when the condo owner has not read the policies through, or has misunderstood something. If there is total understanding about the policies, then a HOA is simply wonderful. It takes all the worry and stress out of owning a property since all of the maintenance will be taking care of for you. If you are considering getting a condo just make sure that you read all of the paperwork carefully to a full understanding before you sign any papers.

Investment

As the population ages, comdos are becoming increasingly popular. They are a good step back from home ownership for older people that still want ownership of a Westfield New Jersey property without all the hassles of maintenance. For this reason, condo prices have stable increases in the market during good economic periods. Indeed, many investors are only putting their money into Westfield New Jersey condos because they are looking ahead to the future and where the housing market is heading.

Condos are great buy at this time, and whether you are looking at one for an income opportunity or a place to live, a condo offers something for everybody.

A home inspection is one of the first investments a buyer makes in a property.  The purpose of a home inspection is to check out the home for potential problems before a buyer purchases the home.  Many real estate purchase offers contain a home inspection contingency clause.

A typical home inspection can last up to three hours.  The home inspector makes a thorough examination of the accessible areas and systems of the property.  The average fee for a home inspection ranges between $300.00 and $500.00 and covers a standard list of items.  If additional tests are requested or required, an extra charge may apply.

A home inspector will take you through the home step-by-step, pointing out potential and necessary repairs.  This information can be invaluable when negotiating the purchase price of the home.  The inspection also gives the buyer a fantastic opportunity to become familiar with the details of the systems of the home.

The standard systems of the home to be inspected include the structure, electric, heating/air conditioning, and plumbing systems.

The framing and foundation of the home is considered the structure.  The heating and air conditioning system will be tested during the inspection.  The vent systems will also be examined.

The plumbing system will be tested including all fixtures and faucets.  Drains and plumbing vent systems will be inspected.  If the home has a sump pump, it too will be tested.

In addition to the standard systems, the home inspector will inspect all accessible areas of the home including the exterior, interior and basement of the home. 

The exterior inspection includes the roof, foundation, doors, decks, balconies, porches, and any walkways or driveways leading toward the entrance of the home.

The interior inspection includes walls, ceilings, floors, stairways and railings, basement, doors and windows.  Additionally, the home inspector will test major kitchen appliances such as the oven, stovetop, and microwave oven.

After the inspection you will receive a comprehensive report and supplemental material.  This educational material is often in the form of a book or binder.  The report will list any issues uncovered during the inspection.

It should be noted that, while home inspections can be informative and useful, New Jersey buyers should not expect them to be technically exhaustive.  This is because New Jersey Standards of Practice require they be based solely on visual inspections.  The inspector is only required to look at the stated components and systems that can safely be accessed, are operational, and can be operated without damage to components.

Inspectors cannot, and will not, for example, disassemble equipment to determine the condition of hidden components, since the process of disassembly can itself cause problems.

Water stains on a ceiling?  An inspector can speculate as to the possible cause, but he cannot tear out the drywall to see where it is coming from. The integrity of buried plumbing drains?  Inspectors do not perform ultrasonic testing or video scans. All they can do is look for are telltale signs of problems, and offer their opinion as to their possible source.   .

Buyers also need to be aware that a home inspection will not include an evaluation of  everything in a home. For example, an inspection of a septic system cannot legally be performed by licensed New Jersey home inspector. Beyond that, things like window air conditioners, water filtration systems, countertop microwaves and other non-hardwired items are also not part of the inspection.

And, consider washers and dryers with laundry in them - these can't be operated for obvious reasons. Additionally, if the house water, gas or electricity is turned off, or an appliance or fixture is valved or breakered off, an inspector should not be expected to turn on the appropriate valves or circuit breakers. This is for good reason: The circuit or system may be rendered inactive because of an electrical fault or leak, unbeknownst to the inspector. Turning on items that are shut off by valve (clothes washers or barbecues), or by circuit breaker (spa tub, baseboard electric heat) can result in unanticipated property damage to the home or personal injury to the inspector. Services that are shut off could be due to a gas main leak, electric service entrance problem, or water line break.

Another common misconception by buyers is that home inspectors are experts on all things they inspect, and that what they say is the final word on defects. Consider the home inspector as the "general practitioner" of the health of the home they are evaluating. Just as most people do not expect their family doctor to be able to correctly diagnose everything they see, and are used to being referred to specialists, so is true of home inspectors.

No matter how many years or inspections an inspector has under his or her belt, no one has all the answers. Structural, roofing, suspected underground fuel oil tanks, suspected mold or termite activity and heating/air conditioning issues are often cited by home inspectors as areas where they recommend buyers get a "second opinion" from a licensed or certified professional in those specialties.

As a home buyer, it is your responsibility to pick the home inspector you want to use. Your real estate agent can be very helpful in giving you a list of names of qualified home inspectors. However, in no way are you obligated to use them. There may be others out there that are highly qualified and experienced. While it is convenient for your real estate agent to obtain an inspector and schedule an inspection for you, remember that the inspector that the agent prefers to use may not be the one who is best for your needs. 

Author: Raynor James

Buying a house can be an intimidating and overwhelming experience. Here are some key questions to ask yourself and sellers before plopping down a down payment.

Following is a list of general questions you should always ask when considering making a real estate purchase. Keep in mind, however, you are unique.

You have particular dislikes and likes as well as factors in your life that are different than other people. The point I am trying to make is that you shouldn't stick to just these questions. You are making an important choice, so give some thought to your situation.

1. Don't rush into things. The first question to ask should be directed at yourself. What type of home do you want? How big should it be? What amenities do you want? Are you planning for a family in the next three to five years and will the home be able to accommodate a new bundle of joy? Make a definitive list and stick to it. If you stray from it, you could end up with a house that doesn't really fit you and suffer buyer's remorse.

2. The next question is what area do you want to live in? Pick a few. You may find the prices to be excessive or the selection not so hot, but make sure you exhaust those areas before moving on. Again, you want to avoid buyer's remorse.

3. Once you start looking at homes, a key question to ask is how long the house has been on the market. The amount of time will give you an idea of how flexible the owner is on price. If the house has been on the market for a month, the owner isn't going to be very flexible. If it has been on the market for six months, flexibility will definitely exist.

4. Has the house previously been in escrow, but fell out? If so, find out why? Was it a problem with the buyer getting financing or did the buyer find out there was something wrong with the home?

5. What kind of condition is the house in and how old is it? Remember that a seller has typically done everything reasonably possible to spruce up the home. If you can see wear and tear on the house, it may be a red flag. In such a situation, you need to get a home inspection to make sure there aren't problems in areas you can't see such as mold, rust and water leaks.

6. If you have children or are planning on it, you must investigate the school district. Are the schools good? Are there gangs or crime in the area?

7. In addition to the home price, you should ask whether there are any additional fees such association fees.

8. What are the property taxes and what will they be when you buy? Many people are shocked to find out how much they have to kick out in property taxes. Don't get surprised.

9. Zoning and easement issues are often overlooked when buying a home. If you are buying in a neighborhood with many homes, zoning is undoubtedly going to be for residential living. Easements, however, can be nasty surprises. Find out if there are any easements on the property. An easement gives a third party the right to use of part of the property. This can include giving the neighbor the right to do something or a utility company to place structures on your prospective property.

10. Noise is another big issue to consider. If you are serious about the property, make sure to drive buy on weekdays and weekends. If the property shares a wall with another residence, such as a duplex or condo, make sure you view it while the neighbors are home to get an idea of how loud it is.

11. In the euphoria of buying a property, practical issues can be missed. A big one is traffic. Specifically, what is the commute like between the house and your place of work? You don't want to buy the house only to find out it takes three hours to get to and from work each day.

Obviously, you should be asking many additional questions before making a purchase. These 11 questions, however,  will help you get started.

Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner. Visit our home buying page to buy homes and read relocation articles.


Article Source: http://www.articlealley.com/article_33375_33.html

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http://www.fsboamerica.org

A critical part of selling a home is the appraisal. Here's how to plan for it.

You have a contract to sell your home and now the appraiser is coming. The appraisal needs to come in at a good price in order for your buyer to get his loan. What should you do?

The Appraiser Says

Appraisers typically tell people not to do anything special before they come. They tell the owner they see lots of houses and they can look past a little clutter and dust. "Don't be nervous," they counsel. Appraisers are sincere people. I'm sure they mean what they say.

I Say

On the other hand, appraisers are human. They respond to cleanliness and order and to good maintenance the same way buyers do. If you've let your hair down, get your home back into "show" condition before the appraiser comes.

Everything you know about a tidy approach to your home, well mulched flower beds, door knobs that are attached firmly and work smoothly, lack of finger prints, lack of clutter, and all the rest applies. Take a look at a "Uniform Residential Appraisal Report" form if you doubt me. The age of the home and the "effective age" are asked for under the "General Description." Don't you think how well your home appears to be cared for affects the number that appears under "effective age?"

The Uniform Appraisal Report requires information about materials (and their condition) used for floors, walls, trim and finishing elements, bathroom floors and wainscots, and for interior doors. Appraisers train themselves to notice these details. If yours are dusted, polished, and free of scratches and fingerprints, don't you think you might be giving your appraisal a nudge in the right direction?

The Report also asks about kitchen equipment (refrigerator, range and oven, disposal, dishwasher, fan and hood, microwave, and washer and dryer). Do you think it'd be a good idea to have them clean and purring?

The Report asks about amenities such as fireplaces, patios, decks, porches, fences, pools, and sheds. If an appraiser is going to take special note of such things, shouldn't they be swept, cleaned, and have paint in good condition? Also, clean out the gutters if they need it. If it should be raining on the day your appraisal is done, you want your house to handle the rain water well.

Let me share the "comments" section of an appraisal which got the owners what they wanted. I think it'll give you a good feel for what you need to do. "The subject is well maintained and no physical, functional or external inadequacies were noted. Marketability is enhanced by hardwood flooring throughout a majority of the home, an updated kitchen, fresh interior and exterior paint, transom windows, built-ins, a front porch, a rear patio, a large storage shed, 4 fireplaces, etc."

The appraiser is a human being. Make sure you do everything you can to appeal to them and you'll get a good appraisal.

Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner. Visit our "Sell My Home" page to sell your house or our home buying page to view and buy homes, houses, condos, land and real estate.

Just the mention of the word "Asbestos" is enough to strike fear into most people, such is the scale of the scare-mongering by international governments and insurance companies.

Whilst there is every reason to treat asbestos with care, the reality is that most asbestos containing materials that you're likely to find in buildings, is probably going to be pretty harmless, as long as it's not damaged.

Asbestos was used in the construction and shipping industries until the 1990's when it was banned by most western governments.

However, being a naturally occurring mineral, it is still mined today in Canada and South Africa and asbestos products are still widely available in many Asian countries.

Asbestos containing materials can still be found in buildings in the USA, Canada, the UK and Europe, but unless disturbed, they are unlikely to present a health risk.

Blue asbestos, known as Crocilodite, is the most dangerous. You're likely to find this in boiler rooms, trains, on older ships and in older swimming pools. It was mainly sprayed onto surfaces for fire and/or condensation insulation.

Because it is a sprayed product, it is quite friable, meaning that it is easy to break and disperse. The fibres released are extremely dangerous and it is this type of asbestos exposure that is likely to lead to pleural plaques in the lungs, which leads to the onset of Mesothelioma, or asbestos cancer.

Experts disagree on how much exposure to blue asbestos is needed in order to create a serious health risk, as not everyone who has had extensive and significant exposure to the material develops health problems.

Generally speaking though, if you come across asbestos in a boiler room or cellar and find that there is asbestos debris present, or that the asbestos is exposed, the room should be sealed off and the asbestos material should be professionally removed.

Brown asbestos, known as Amosite is usually present in boards designed to protect against fire, for example on party walls, in roof spaces etc.

These boards are usually safe and will often be painted (known as encapsulation) to prevent any fibre release.

If drilled or broken however, they can release fibres and should therefore be removed wherever practical to so.

If it not practical to remove, the boards should be labelled stating that they should not be disturbed or worked upon, except by properly qualified or licensed contractors.

White asbestos or Chrysotile is less dangerous than either brown or blue asbestos and recognisable because it is usually present in cement or resin based products.

Again, health experts suggest that there is no safe level of asbestos exposure and whilst I am not one to disagree with the experts on this matter, I do question the hype and scaremongering.

It is well known that for many years, people have been dying from exposure to asbestos. That is not disputed. Asbestos can be dangerous.

Most of the claims however, come from people who worked closely with the raw product. Lagging specialists used to openly spray blue asbestos in confined spaces, using sub-standard masks.

My own father worked for a UK train maker in the 1960's as a joiner, making train and underground carriages. His job was to prepare the carriages for the final fixing of the external metal sheets, but before doing so, the asbestos sprayers would first spray the entire surface that would provide a layer of sound and heat insulation.

According to my father, he would then enter the production track where he could see the air thick with asbestos fibres and dust against the dim light bulbs that lit the area. He says he was often knee deep in asbestos debris.

Maybe he was one of  the lucky ones. CT scans on his lungs have detected a few pleural plaques. At the moment, they cause no real health problems for him and he is in his mid 70's now. His arthritic knees are more of a problem, but he did manage to get a compensation payment for the presence of the pleural plaques.

So why call this article "How Dangerous Is Asbestos"?

In my work as an asbestos surveyor in the UK, my job is to find asbestos in commercial buildings and to prepare recommendations on behalf of landlords or tenants as to how best deal with the asbestos.

Only in a few serious cases have I ever suggested that asbestos be removed because of an immediate risk to health.

Managed correctly, in accordance with government regulations, asbestos containing materials should be safe enough, providing they are not disturbed.

But what about comparing the risk of asbestos with say the risk of passive smoking?

Did you know that passive smoking is a staggering 60 times more likely to create the onset of a serious lung disease than exposure to asbestos?

You wonder why governments should therefore introduce legislation controlling the exposure to asbestos by employees and visitors to buildings that contain it. Could it be that there is no tax on asbestos, yet the cigarette industry and its customers pay billions of Pounds or Dollars in tax to governments every year?

Or am I just being sceptical? It makes you wonder though doesn't it?

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Real estate investors often consider foreclosures in Westfield, New Jersey profitable investments. While this may be the case for the savvy and experienced investors they can often carry a number of risks for less-experienced, first-time buyers. Tempting as foreclosures may seem, buyers need to educate themselves beforehand in order to avoid these five common mistakes.

Mistake #1 – Fooled By The Sticker Price

While the price you negotiate for a foreclosed home in Westfield may be significantly less than its value just a few years back, many such homes often require substantial repairs. Even if a house is only a few years old, it can deteriorate quickly. Therefore, unless you are planning on making these repairs yourself, be prepared to reserve an additional 10 percent of the purchase price for potential labor costs. It’s important to keep these repair costs in mind when negotiating, so you do not end up foolishly overinvesting in a foreclosed property.

Mistake #2 - Waiving The Home Inspection

Foreclosed properties are often advertised “as is” with higher discounts offered to buyers willing to waive a home inspection -- something (for reasons stated in Mistake#1) is never advised to do. Often such homes are neglected by owners who stopped caring about their home once they stopped making their mortgage payments. Inspections on many foreclosed properties commonly reveal leaky or damaged roofs, rotting foundations, malfunctioning plumbing, electrical, and mechanical and heating systems, mold and radon contamination and termite infestation. Without having an experienced home inspector examine these components thoroughly, a buyer could inherit a much larger and costlier repair job than expected.  

Mistake #3 - Looking For A Quick Flip

With many foreclosed homes expected to decline significantly in value in the near future, you need to think of a foreclosure as a long-term, rather than a short-term, investment.  If you are just trying to cash in on a quick flip, a foreclosure is not for you. Only investors with the financial resources and patience for a long-term real estate investment and homeowners who can afford a fully amortized fixed-rate mortgage should consider buying a foreclosed property,

Mistake #4 -  Ignoring Location

Inexperienced buyers often assume discounted prices offered on Westfield foreclosures will compensate for a location in a less desirable neighborhood. As with any other kind of home purchase, your search should always focus on the worst homes in the best neighborhoods, to ensure yourself of the highest resale value in the future.  

Mistake #4  Cloudy Title

Getting a mortgage nowadays without having to make a down payment is pretty much a thing of the past.  Other than FHA loans (which require a minimum of 3.5%), most lenders have tighened their requirements, with some  requiring a minimum deposit of  10% -- some as high as 20%.

As a buyer, however, you should recognize that there are definite benefits in making a larger deposit. For one, the larger the down payment you put on the home, the lower your monthly payments will be. A higher deposit will also provide you with far greater equity in your home. Later on, should you need to, you can borrow against this equity in the form of a line of credit or a home equity loan.  

A higher down payment will also earn you a lower interest rate, and if the payment is at least 20%, you won’t be required to purchase costly mortgage insurance..

Lastly, since most lenders are now requiring that you put some kind of cash down on the home, with a down payment in hand, you will be able to shop amongst more lenders. That means you can get a better deal on your mortgage and not have to worry about dealing with only those few people who will let you get by without making a down payment.

There are several ways you can come up with this money for buying a home in Westfield New Jersey. One way is to make use of your income tax refund. You could also create a monthly savings plan. You may also want to consider using the holiday bonuses you get from your employer or applying for government assistance programs. Putting up a sizable down payment is definitely worth some of the legwork it may take to get the funds together.

Homes in the Westfield New Jersey real estate market are great homes for anyone to live in. There's a vast amount of free information that can be found about Westfield New Jersey homes on the company website at www.livinginWestfieldNJ.com. With the help of agents like myself, you can get the assistance you need to find the Westfield New Jersey home of your dreams. You can call me on my cell phone at (732) 910-1301 or you can email me at peter.jordan@prudentialnewjersey.com

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