Buyer Frequently Asked Questions

Especially Helpful if you are a first time buyer
 

How do I know what price range I can afford in a house?
 

There are many resources on the web which will calculate your mortgage payment on a house at different lending rates, or you can call a mortgage broker and they will help you find out what you can afford. Always remember to allow for property tax, insurance and maintenance costs in figuring out what you can spend on a monthly basis for your house.
 

Once I start working with a real estate agent, they work for me, right?
 

If you meet the agent at an open house then technically the agent works for the seller, unless other arrangements are made. When you first meet with an agent, they should have you sign a disclosure form, which says that they have explained this to you. Although this agent maybe the listing agent and thus is responsible to the seller of a house, this does not prevent them from representing you and assisting you in purchasing the home. In this situation the agent can not share such information as what the sellers will actually take for the home however, they will work hard to meet your needs and help you by providing comparable sales information which will be used to determine an appropriate purchase price. If you’re not interested in the agent’s listing, he or she can assist you by determining exactly what it is you’re looking for and directing you to the right house at the right price.
 

What is a Buyer’s Broker?
 

A Buyer’s Broker represents you and your interests and does not represent the seller’s of the home you are interested in purchasing. Their job is to be your advocate and the agent’s sole responsibility is to you. You do not have to pay extra for this, but you do have to have an explicit arrangement and contract with your agent confirming this status.
 

Should I apply for a mortgage even before I find the house I want?
 

It is an excellent idea to get Pre-Approved for a mortgage early in your house search. When you find a house you like, your offer to buy is much stronger if your agent can assure the seller (backed up by documentation) that you will not have a problem securing a mortgage. An actual mortgage application requires a specific house/address and so cannot be done until after the owner accepts your bid. Note: A pre-qualification is NOT the same as Pre-Approval.
 

Once my bid is accepted, what happens then?

Included in your Offer to Purchase dates will be built in for you to have some time to get a mortgage commitment and to have an inspection done. When these are done, a Purchase and Sale Agreement will be written up and will cover all terms of the purchase/sale including closing dates. Your agent will be able to go over all this with you on an individualized basis and explain any unclear areas.

What is involved in a Home Inspection, and why is it done?

Once you have found a house you like and have agreed on a price with the seller, you have the right to have the house inspected by a licensed home inspector. If you have this done (which I always recommend), you pay the inspector. The purpose of a home inspection is to identify major problems areas in the house, such as with the roof or heating system. It should not be used as a “laundry list” for the seller to address every item that comes up – every house that is not new and has been lived in will have minor items of note. If there are areas of concern to you, your agent will help you negotiate with the seller to address them. This may involve a change in the house price or having repairs made prior to closing.
 

Do I need a lawyer?

Many first time homebuyers use a lawyer during their buying process to review the Purchase and Sale Agreement, answer questions along the way, and be present at closing to represent their interests and explain forms to them. If you do not feel a need for this, or do not wish to incur the additional expense it is not necessary. That said, it is not a bad idea to have a lawyer at least review your Purchase and Sale Agreement before signing it. It is a lengthy and detailed document that is legally binding, and once you sign it you cannot say you’ve changed your mind on some point or didn’t understand something and want to change it now.

Why should I use you, Jason Opland, to buy my house?
 

I will take an active role in finding you the right house. Every aspect of purchasing your new home, from pricing to negotiations will get my highest level of attention. In my field, reputation is everything – I want a happy client who would recommend me to their friends and the only way I know how to do that is to provide top service. Communication, effort, and attention to detail are what you’ll get when you buy with me.

Call Us Now To Become A Buyer

Comparing Loan Offers

When you decide to purchase a home, one of the first tasks is to talk to a couple of lenders and choose which lender & loan is best for you. With all the loan variables, this is often easier said than done and it’s often quite difficult to compare one lender to another. If you’ve decided to work with a Realtor you’re in luck as he or she will be able to assist you in determining which loan represents the best option, and offers the best terms. Never the less, it won’t hurt to have an understanding of the process for yourself and thus in this post, we’ll go through each of the loan variables.

1. Down Payment:In general, the more you can put down, the better the interest rate you can get. However, there is a point at which it does not matter how much more you put down, and that point is usually either 20% or 30%, depending on the loan program. If you are looking for the best rate possible and have the ability to put down more, ask your lender if this would be advantageous.

2. Loan Life: The longer the term of the loan, the more total interest you will pay. In part, this is because you will have a better interest rate with the 15 year loan; for instance, today’s rate from a large bank is 6.125% for a 15 year and 6.375% for a 30 year.  The other reason you pay less interest over the life of the loan with a 15 year term is because you pay down your principle faster. An alternative option for those seeking to pay less interest on their loan is to simply pay more into your mortgage each month and thus pay the loan down quicker. For example, on a 30-year $240,000 loan at 6.5%, if you pay $272 more per month (above an beyond your actual bill), you can end up paying the loan off in 15 years instead of 30. For many this is a better alternative as they can pay down their loan sooner however, they are not tied into and required to make the higher payment.

3. Property Taxes:When comparing lenders, this number should not vary because your property taxes are paid to the city, county, and state, not the lender. So, this number should be constant across all lenders. But, when you look at estimated payments from different lenders, the estimated taxes will vary because it is their best guesses at what the tax bill will be at the end of the year. The easiest way to compare the lenders is to just compare the principal plus interest and add in the same number for taxes. Essentially, you are standardizing the estimated payments between the lenders so that you can compare the actual rates. Another way of doing this comparison is to ignore the estimated payments and rather concentrate on the actual interest rate they are quoting you.

4. Insurance Rate: Again, the insurance is an estimate that the lenders will make. They may estimate differently, so be sure to normalize this number across all the estimated payments.

5. Interest Rate:The interest rate is variable depending on your; credit score, income, and loan type. The higher the credit score, the better the rate. Lenders have cut-offs for what they consider to be above average, average, and low scores. Those who fall into the above-average group will get the best rates. Your income comes into play when they figure your debt-to-income ratio. This is basically a way to measure how much you are bringing in and how much you are spending. At some point, a lender will not allow you to create more debt for yourself than they think you can handle. That said, you know more about your spending habits and lifestyle than the lender does and thus you should consider what you want to handle and fell comfortable with. The loan type also has a heavy emphesis on your rate. A better rate is given to those who will owner occupy the property as opposed to those who plan to use it as a rental.

6. Points: Points are paid by the Borrower in order to buy down the interest rate. If you get some insanely low interest rate from one lender that seems completely out of whack from the other quotes, this might be because they are quoting you a rate with points. A point is equal to 1% of the loan amount, and you pay this point as part of your closing costs. So for example, with a loan for $240,000, one point would be $2,400 and that point might buy your interest rate of 6.5% down to 6.25%. Buying down your rate will lower your monthly payment but an analysis, considering ones intended length of ownership should, be performed to determine if the payment of points makes sense in your situation.

When comparing lenders, make sure they all quote you a rate with no points. This levels the playing field so that you can determine who has the best rate without having to do all kinds of crazy calculations.

7. Closing Costs:In addition to points, the Borrower pays 2-3% in loan-related closing costs. The majority of closing costs are lender fees.  The closing costs include application fee, pulling of credit report fee, loan origination fees, appraisal fee, lawyer fees, application fee, and document preperation fees.

These are the main components of the loan to sort through and compare. The toughest part is to compare lenders and weigh out all the closing costs and points paid along with the interest rates.  How do you compare one lender with a 6.5% interest rate with $5,000 in closing costs to another lender who has a 6.0% rate with $8,000 in closing costs? The rate is better but the closing costs are $3,000 higher, so which loan represents the best option? To compare this, the lender can provide you with the loan’s Annual Percentage Rate (APR), which is the interest rate calculated with closing costs wrapped into it. As long as you are comparing two loan with the same lifes and are putting the same amount down, the APR is the method for determining which lender is offering the better overall package.

For More Information Visit http://www.JasonOplandd.com

The Best Investment

In times of economic uncertainty, the wisdom of buying property remains unchallenged. Ask the 73 million Americans who currently own homes why they made the decision to stop renting. They will describe the numerous financial advantages and the personal satisfaction of investing in real estate.

Owning your home means that your monthly payment contributes to your own net worth instead of your landlord’s, as the equity in your property builds up over time. Real estate values continue to grow at an average rate of 10 percent each year, and during the last decade, most homeowners have reported even more dramatic gains. Furthermore, you home is typically a leveraged asset, that is if you purchased your home with a mortgage you likely did so with a down payment of less tan 20%. While you may have only put 20% down, you earn the appreciation on your homes total value and thus is you buy a $200,000 home the appreciation you would earn in that first year f ownership would be $20,000 (rather than $4,000 on your $40,000 downpayment). And a fixed rate mortgage ensures that you won’t be subject to periodic rent increases, so you can plan your monthly budget with confidence.

Low mortgage interest rates have enabled more Americans than ever before to realize their dream of home ownership and save on income tax. Homeowners can deduct 100 percent of their mortgage interest payments and their property taxes, and new tax law benefits have allowed many to sell a principal residence and bank tax-free profits of up to $250,000 per individual or $500,000 per couple.

Real estate is still the best investment!

For Additional Information visit http://www.JasonOpland.com

Perks Of Working With A Buyer’s Agent

You’ve got a high speed Internet connection, your own car, and a brain right…? So why bother with a real estate agent? 

Well, you should know what you’re in for when you casually stroll into an open house or sales center without your own agent. You’re utterly unrepresented, and here’s what the danger in that:

1) You’re vulnerable to the upper hand of an agent who’s representing the seller.If you start talking about how much you love the place and your need to move in the next 60 days, the seller’s agent will definitely “have your number.” These are not inherently bad or unethical people, but they are professionals who know their mission — to sell the owner’s home or the developer’s units for the highest price possible. Realtors know how to spot interest and how to gauge the level of interest. Your Realtor can arrange private showing for you which the seller’s agent will not attend and thus will not be there to take note of these things. Your Realtor will also assist you with posturing and other tactics that will aid you when it comes time to negotiate on the home you’ve selected.

2) You may make it impossible for another agent (who’d be working on your behalf) to negotiate for you. Many open houses and sales centers have strict policies about any buyer’s agent being disclosed and registered in writingon the buyer’s FIRST visit. This is to prevent a scenario where the seller’s agent does all the work, only to have another agent come in at the last minute and collect 1/2 the commission. So if you fail to let the seller’s agent know that you’re represented, you may be locked into working with him or her exclusively on that property since they often will not pay your agent’s commission. You should also know that you do not pay your agents commission on the purchase (new builds or existing homes) as the commission is already factored into the price of the home. While you may be able to talk the seller of an existing home into splitting the 3% commission your agent would have made if you’d decided to work with one, a buyer’s agent on average will save a client many times this not only in the form of a reduce sales price on the home you purchase but also a reduction in other fees associated with the purchase (loan fees are usually the biggest, by referring you to a preferred service provider and helping you select the best loan offer your agent will typically save you thousands). If a new build was what you had in mind you should know that builders will not reduce the sales price of their homes for buyers that decide not to hire an agent. Again these costs are already factored into the price of the home and builders do not wish to provide buyers an incentive not to work with their best marketing source, that is Realtors. Furthermore, if a buyer does not have an agent this simply creates more work for the builders sales representative as they then need to assist these individuals by familiarizing them with the sales process, writing the contact, arranging financing, monitoring the transaction and keeping everything on schedule. 

3) You may (WILL)  end up paying more for the place you love. This can be particularly true if you’re interested in a new development. Pricing, incentives, and upgrades are often negotiable, but the staff at the sales center isn’t likely to point this out to you as they represent the builder and are paid based on their performance and ability to sell more homes for more money. And for those that are savy enough to request free upgrades, you should know that without an agent it’s unlikely you’ll get it. Active real estate agents know what’s going on in the market and how to get developers to crack when it comes to things like free upgrades. Your real estate agents services go far beyond just letting you know what homes are available and helping you execute the purchase!

4) You could blindly buy into the “newer is better” mentality.New construction sales centers are intoxicating places with great lighting, and pieces of expensive furniture perfectly staged to make you feel right at home. They’re like new car showrooms as far as the “ooh and ahh factor” is concerned. But shiny appliances and immaculate floors aside, buying new construction is not without its share of risks… for example being unable to compete with “Phase II” when you get ready to sell in a couple of years. You’d be wise to consider all this before signing on the dotted line. Get a pro who’s on your side to help you think it through.

You may want to check in with your own buyer’s agent before you start even an “informal” search in earnest. He or she can give you tips that’ll help you protect yourself.

Call or email us today to enlist our services and get started with your Buyer’s Agent! 

The Risk Of Un-permitted Improvements & Additions

Home improvement projects and additions have increased in popularity much in response to Home Improvement Shows as well as Do-It-Yourself Clinics offered by stores such as Home Depot & Lowe’s.  While most homeowners will contract with a professional when taking on larger projects, many are hiring unlicesed contractors or simply choosing to tackle these projects on their own in an effort to reduce their costs and in many cases are attempting to reduce these costs even further by not filing for permits. If you’re considering purchasing a home that’s had un-permitted additions and/or improvements made to it here are four factors that determine how concerned you should be about un-permitted work:

1. Significance
2. Workmanship & Code Compliance
3. Effect on resale
4. Possible future requirement to permit or remove

1. Significance
If we’re talking about an un-permitted patio cover or professionally done kitchen remodel, I wouldn’t sweat it. Few people pull permits for them. But a family room addition or extensive electrical work done by the owner or an unqualified individual is more significant, and cause for concern.

2. Workmanship & Code Compliance
Like any home you buy, hire a professional home inspector. Ask him or her to look extra hard at un-permitted additions. Many are built fine, but others are weekend projects by unskilled homeowners. If well-built but not code-compliant, you could still face problems in #4 below.

3. Effect on Resale
If sellers know about it, they must disclose un-permitted work when they sell. There’s no guideline, but my rough rule of thumb is: if it’s well-built, an un-permitted room is worth 50% of a permitted room. Obviously, that means it should have a likewise impact on what you’ll pay right now.

4. Possible Future Requirement to Permit or Remove
The city rarely hears about un-permitted additions unless a neighbor complains or a city inspector notices it (typically that happens when checking other work you ARE permitting). Once aware, they’ll make you remove or permit the work. Permitting means you’ll pay penalties (I know YOU didn’t build it, but the city doesn’t care) and bring it up to current code, which could be easy or costly.

…in summation:

When buying…

1. Don’t sweat minor un-permitted items (provided #2 is OK)

2. Decrease your offer by appx 50% of the added value of an un-permitted room

3. Have it inspected. If poorly built, ask the seller to credit you the cost of bringing it up to standard

House Values: An Explanation on Pricing

Market Value
Your house has many values to the tax assessor, your lender and insurance company, and to you. It also has what’s called “market value” to prospective buyers.

A Comparative Market Analysis (CMA) is utilized in the calculation of the best price obtainable however, this value can only truly be determined by testing the market and challenging the competition. In the end, it is the market that dictates the value based on current conditions, number of Home Buyers, etc.

Physical Qualities:
o Location
o Age
o Size of house & lot
o Floor Plan & architectural style

The Competition:
o The number of similar properties for sale
o Their pricing, financing terms, location and physical condition

Market Conditions:
o Interest Rates & availability of financing
o Buyer Demand (Market Status – buyers or sellers market)
o Prices of recently sold properties
o State of the economy
o Seasonal demand

Additional Factors:
o Time on the market
o Terms
o THE AGENT YOU SELECT TO MARKET AND SELL YOUR HOME!

Some factors that have no effect on the current value of your property:
o What you originally paid for the house
o The cash proceeds you want or need from the sale
o Opinions of your friends & neighbors with regard to your property value

DETERMINING THE BEST PRICE OBTAINABLE FOR YOUR HOME

Comparative Market Analysis:
To help determine a price for your home, your agent will prepare a Comparative Market Analysis (CMA). Buyers engage in comparison shopping and they will not pay more for a property than they could pay for another similar property. If your home is not priced in accordance with similar homes, you will not realize as many showings which will result in a delayed sale and ultimately a lower sales price. The CMA will use the following;

Recently sold properties
Reveals what buyers have actually paid for similar properties.

Currently for sale
Shows the properties with which your property will be competing for buyers’ attention.

Expired listings
Demonstrates what buyers are not willing to pay under current market conditions.

If you are interested in selling you home and would like to request a free, no obligation CMA please email or call us at 614.332.6984 and let us know how we may assist you.

Things Your Realtor Won’t Tell You

Steve Roddel was walking through a house in Fort Wayne, Ind., when he wondered aloud if there were any sex offenders living in the neighborhood.

Instead of commenting on her own, the real estate agent showing the home quickly pulled out her cell phone, connected to its Web browser and brought up Family Watchdog, a national sex-offender registry Web site. Little did she know that she was standing with the site’s founder and CEO. Visit Family Watchdog.

A real estate agent can be a wealth of information about a house. So a home buyer who asks what crime is like in the neighborhood might be surprised when the agent defers the question, directing a client to the Web or the local police instead.

The Realtor will be the one that has the most contact from beginning to end. Because of that accessibility, consumers feels that they can give them all the information that they need, however, there are some pieces of information that an agent simply can’t speak about due to fair housing laws, including demographic statistics. And they often prefer to leave some characteristics, such as the quality of the school district or crime stats, answered by other sources. This conservative approach is often taken in order to avoid a lawsuit popping up in response to frank neighborhood talk. Agents are forbidden from giving any information that could be considered “steering,” directing a client toward or away from a particular property in a discriminatory manner.

Some of this information could likely make or break a decision to buy, the quality of school systems, for example, has long been of importance to home-buying families. Luckily, there are a variety of sources buyers can use to get this information.

Checking on the schools

Unless a realty agent has hard data at his or her fingertips, the agent may decline to answer school-district questions. And even if they are willing to share some information, a home buyer might want to do some fact-finding — or maybe even complete the research before deciding which neighborhoods to consider in the first place.

A national database of school demographic information can be found on the National Center for Education Statistics Web site. Click on the “School, College and Library Search” tab at the top in order to view data including a particular school’s student-to-teacher ratio or enrollment by race and ethnicity. Visit the site.

For a snapshot of academic performance and to compare schools, a prospective homeowner might browse the School Matters Web site, a service of Standard & Poor’s. Visit School Matters.

Another site, Great Schools, offers similar tools. Visit Great Schools.

“People who are really attracted to (School Matters) are people who are moving”, said Susan Shafer, director of marketing and communications for Standard & Poor’s School Evaluation Services. “It’s a good starting point,” she said, but it still isn’t a substitute for an actual tour.

Of course, some districts and state departments also post information online. It might be worthwhile to look at an individual school district’s site, especially for large systems.

Crime matters

Roddel’s Family Watchdog Web site allows users to enter a street address, which pulls up a map of the area that plots out where sex offenders live. Click on one of the squares that indicate an offender’s home, and often an address and a photo are available to view. Information is updated at least once a day, and is culled from state registries.

The idea for the site came about a year an a half ago, after 9-year-old Jessica Lunsford was assaulted and killed by a convicted sex offender in Central Florida in 2005.

Roddel hopes to create another tool that will help people learn about other neighborhood crimes. For now, he suggests that people scout out the neighborhood the old-fashioned way.”Talk to the police department and see if they’ve got any statistics. If you’re in a city that has a department of public safety, see if you can get some information,” Roddel said.

Judging the environment

Another issue that comes up occasionally in a housing search is the environmental characteristics of a neighborhood. The association typically advises members not to make judgment calls on the health of an area, and to leave that to experts.

The U.S. Environmental Protection Agency Web site has a tool that allows visitors to search a community by ZIP code for environmental facts about the area, including pollution statistics, the location of hazardous waste sites and information about the area’s watershed. Visit the site.

Another site dedicated to helping the public retrieve information about local environmental health is Scorecard.org, which generates a pollution report card at the county level, giving information on such topics as air and water quality. Visit the site.

Learning the demographics

If agents don’t shy away from any other question, they most likely will when it comes to those regarding demographics — and for good reason. Fair housing laws forbid issues of race or ethnicity to be a consideration in the minds of real estate agents, who must not steer a client toward or away from a particular area based on the neighborhood’s makeup.

I suggest searching the Census Web site for statistics about an area’s demographics; the Census’ Quick Facts page breaks down the information easily, by city and county. Visit the site. This will also show general socioeconomic data.

Walking the neighborhood

Finally, even though there’s a wealth of information online, there are some questions best answered by walking around the area and making a note of observations.

For example, in Downtown Columbus, sometimes a client will ask what parking is like on a particular block. If the showing is at 10 a.m. in the morning, when many cars are off the street because their owners are at work, we Realtors typically won’t have an answer to give them.

Several trips past the home at various points of the day — noting whether there are special parking restrictions marked on the street — will probably provide a more informed answer.

How To Bid Low On A Home Without Offending The Seller

With stagnant prices and elevated inventory in our markets across the country, home sellers are no longer automatically turning up their noses at offers that come in far below their asking price.

But buyers who do ask for deep discounts still risk offending sellers to the point where they quash any deal. So before making an aggressive offer, some homework is in order. Would be buyers will need to effectively explain why the price of a home should be lower.

There is always an inherent danger in going too low as a low offer could insult the seller to the point that they’ll refuse to counter and the seller could easily make the assumption that the buyer isn’t committed to making a deal. As such there are guideline buyers will want to follow! 

Here are three guidelines on how — and when — to make an aggressive bid:

1. Learn how motivated the seller is to make a deal.

Certain sellers are going to be more willing than others to negotiate a low offer — and there are several giveaways that might indicate more leeway on price.

For instance, if the sellers have already purchased another home and that sale has closed, they’re likely to be more willing to make a deal.

If the property has been on the market for a period far extending the average for the area and price point, sellers will be typically be more included to entertain lower offers.

Your Realtor will want to talk to the seller’s agent to get as many details as possible about how motivated the seller is.

Overall local market conditions also play a significant role as do the seller’s individual circumstances, if the seller needs to move because of a job relocation and isn’t in the position to take the home off the market until conditions are more favorable they are more likely to be willing to consider lower offers.

2. Make your case with hard facts.

When putting together an aggressive offer your Realtor doesn’t just hand the seller a purchase agreement with the price you are willing to pay –they must create a cover letter explaining exactly where that number came from and back it up.

In addition to citing comparable sales in making the offer, it could also help to include details regarding the amount of inventory in the immediate surrounding area, as well as any repairs or improvements which the home requires. 

You, the buyer may even personally write a letter to the sellers to make their point, as they did when the market was hot and they aimed to stand out from the crowd. That way, you can detail what you like about the house but also express you concerns as well.

3. Prepare for the possibility of rejection or negotiation.

Ultimately, a real-estate agent working on behalf of a buyer needs to sit down with the buyer and determine what the home is actually worth, at which time the buyer should determine what the home is worth to them.

Buyers wishing to make very low offers should be aware that the seller might refuse to negotiate. On a “super aggressive offer,” I often tell my clients ”there’s a one in one hundred chance there will be a positive response.”

Still, there’s that potential for a seller to make a counteroffer, especially if there haven’t been many other bids.

On the other side of that coin, I personally often advise my sellers not to think of a low offer as an insult but as “a sign of interest.” The offer begins the dialogue regarding the purchase of your house.

Not all hope is lost even if a seller doesn’t bite immediately. Sometimes after time elapses, the seller comes around and decides to negotiate. New information — such as the sale of a comparable home at a lower price — also can nudge a seller to give an aggressive offer a second look and open the negotiation process.

For Additional Information Visit http://www.JasonOpland.com

Homeowner’s Insurance Tips

When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed. It seems obvious but do not include the value of the land on which your home is built in this value. If you don’t have sufficient insurance, your insurance company may only pay a portion of the cost of replacing or repairing damaged items.

There are three ways to insure the structure of your home:
1. Replacement Cost: Insurance that pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited to a maximum dollar amount.
2. Guaranteed Replacement Cost: Insurance that pays the full cost of replacing damaged property, without a deduction for depreciation and without a dollar limit. This coverage is not available in all states and some companies limit the coverage to 120 percent of the cost of rebuilding your home. This gives you protection against such things as a sudden increase in construction costs due to a shortage of building materials.
3. Actual Cash Value: Insurance under which the policyholder receives an amount equal to the replacement value of damaged property minus an allowance for depreciation. Unless a homeowners policy specifies that property is covered for its replacement value, the coverage is for actual cash value.

For a quick estimate of the amount to rebuild your home, multiply the local building costs per square foot by the total square footage of your house. To find out the building rates in your area, give us a call or consult a local real estate appraiser.

Factors that will determine the cost to rebuild your home:
• local construction costs
• the square footage of the structure
• the type of exterior wall construction — frame, masonry (brick or stone) or veneer
• the style of the house (ranch, colonial)
• the number of bathrooms and other rooms
• the type of roof
• attached garages, fireplaces, exterior trim and other special features like arched windows.

Also be sure to check the value of your insurance policy against rising local building costs each year. Ask your insurance agent or company representative about adding an “INFLATION GUARD CLAUSE” to your policy. This automatically adjusts the dwelling limit when you renew your policy to reflect current construction costs in your area. Also, be sure to increase the limit of your policy if you make improvements or additions to your house.

For Additional Information Visit http://www.JasonOpland.com

Correcting Errors & Removing Negatives From Your Credit Reports

So you’ve just discovered errors in one or more of your credit reports, or even worse, accurate references to late payments or other debt-related issues! Don’t panic, the errors can be fixed, and it’s possible that even some of the negative items can be eliminated! An individual’s credit score is one of the most influential factors a bank will use when considering a loan application, your score will have a significant impact on the rate you are offered.

How To Dispute Errors on Your Credit Report

1. Make a copy of your credit report and circle every item you believe is incorrect.

2. Write a letter to the reporting agency (the address will be printed on the report). Explain each dispute and request an investigation to resolve the issues. If you have supporting paperwork, send it along, coding pages to match dispute paragraphs. Do not send your originals.

3. Send all materials by certified mail, return receipt requested, so that you can prove the packet was received.

4. Send a similar letter of dispute to the creditor whose reports you disagree with (most billing statements include a special mailing address for disputes).

Your dispute might involve personal information, such as your place of employment or your current address. A copy of a pay stub or W2 should resolve an employment issue. A copy of your driver’s license or a utility bill in your name can verify your address.

The reporting agency will initiate an investigation, contacting your creditors to verify the accuracy of the information. If the creditor cannot verify that the entry is correct, it must be removed. When the investigation is complete, the agency must send you a free copy of your report if changes were made.

If the investigation uncovers an error, you have the right to ask that a corrected version of your credit report be sent to everyone who received the report during the past six months.

Tip: Contact your creditor first, then allow a bit of lead-time before you submit the dispute to the reporting agency. By the time the dispute is verified, the creditor will hopefully have corrected the error.

Online Disputes

You can initiate an investigation from your online credit report. It’s an intuitive process–just follow the links and check the disputed items as directed. There sometimes isn’t a place for remarks–you’ll simply check a multiple-choice reason for each dispute.

When Changes Aren’t Made

If the agency verifies that the information is accurate, it must provide you with a written notice that includes the name, address, and phone number of the provider. If you still disagree, you can initiate another investigation.

If your attempts to correct an entry are unsuccessful, you can ask the reporting agency to insert a 100-character explanation next to it that explains your side of the story.

Negative Entries

Bankruptcies remain on your credit report for ten years, while other types of entries are generally reported for seven years. If an account that was previously past due has been brought current, and has been either paid off or kept current for at least a year, the creditor might agree to an early deletion of the past due references.

Write a letter to your creditor and request that the negative entries be removed. There’s no guarantee, but they’ll often comply if they see you are up to date and handling your account in a positive way.

Another tactic is to dispute a negative item even if you believe it is accurate. You’ll have to follow your conscience on that one!

Need Help With Letter Formats?

About.com’s Credit/Debt Management Guide, Michael T. Killian, offers a set of sample letters to help you file disputes and write correspondence regarding many other credit-related issues.

For Additional Information Visit http://www.JasonOpland.com