real estate

Real Estate Terminology Explained

26 Real Estate Terms Defined for New Buyers

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Buying real estate can be complicated, and some of the real estate terminology can be confusing. Be sure to refer to this comprehensive guide when you need some clarification.

Real Estate Terminology

1) Adjustable rate mortgage

As opposed to a fixed rate instrument, your actual interest rate can move up and down at pre-determined intervals according to whatever index it is associated with.

2) Amortization schedule

A chart that shows exactly how much of your monthly payment is applied to principal, and how much is applied to interest.

3) Appraisal

An independent accounting of what a property is worth. Lenders will require to this to make sure the home they are financing is worth the loan amount.

4) Assessed value

What taxing authorities say your home is worth. This can be changed annually.

5) Buyer’s Agent

A real estate professional that represents the prospective buyer and is therefore entitled to part of the sale commission.

6) Closing

The meeting where the deal is finalized. Money is usually transferred that day or the next day.

7) Closing costs

These are the loan processing and various other costs that can equal two to five percent of the home’s purchase price.

8) Contingencies

Contract clauses that can allow either party to exit from a deal. An example is contract section that explains if the buyer cannot get financing within a certain period of time, the deal is off.

9) Equity

The difference between the market value of your home and any loans you have against it.

10) Escrow

An account that certain monies like down payments are placed into pending closing a deal. After the loan is closed, banks often require insurance and tax payments to be escrowed also.

11) Fixed-rate mortgage

A mortgage rate that can’t change no matter what happens to subsequent mortgage rates.

12) Home warranty

Usually purchases from a third party, these instruments help pay for problems after the sale has been consummated.

13) Inspection

Done by an independent person, this process checks the house for problems that may have to be addressed before the sale.

14) Interest

The price you pay for money expressed as a yearly percentage. This is an important piece of real estate terminology that you must understand.

15) Listing Agent

In a transaction, the seller’s agent.

16) Mortgage broker

A third party that finds appropriate lenders for buyers.

17) Offer

The legal document that spells out the buyer’s proposed terms of purchase.

18) Pre-approval

Buyers can go to the lender, present financial information, and get pre-approved for a loan. Pre-approval is not usually binding, however.

19) Principal

The amount of money that needs to be financed after your down-payment has been subtracted. This seems like a simple, easy to understand piece of real estate terminology, but make sure you fully understand this concept before searching for a home.

20) Private mortgage insurance

Insurance that the buyer pays for in monthly payments. It protects the lender against default.

21) Real estate agent

Someone with a real estate license who has passed certain exams and who works with a real estate broker. This should be a very familiar term to many; because whether you’re buying a home in Minnesota or renting an apartment in affordable Eugene, Oregon, it’s likely that you’ve worked with an agent. 

22) Real estate broker

Someone that has met certain requirements and who hires agents to work for him or her.

23) Realtor

A real estate agent that is a member of the National Association of Realtors (NAR). NAR has ethical and business standards that members must follow.

24) Refinancing

Restructuring a home loan to get a more reasonable rate or pull equity money out.

25) Title insurance

A policy that both sellers and buyers must purchase that protects that parties in a transaction against title deficiencies.

26) Contract for Deed

A unique process widely used in Minnesota that, when used correctly, can allow those that have been denied credit a real chance at home ownership.

As you can see, real estate terminology can be tricky, but by becoming familiar with this list, you’ll have a better understanding of what’s going on during your deal.

Mortgage Loan Denial: Is This A Racial Problem?

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So, you need a down payment on a house, but you do not have handfuls and handfuls of cash to make it happen. A mortgage loan can help with that, but what if you can’t get one?

Well, many persons think that race and ethnicity are major factors in mortgage loan denials, and the following chart backs this up:

Down Payment on a House - Mortgage Denial

Others, however, feel that observed denial rates do not give the true picture, and that what is called “real” denial rates paint a truer picture:

Mortgage Denial Reporting

According to Urban Wire, “the real denial rate is still a blunt tool, because it requires the simplification of complex data and trends. It considers credit scores, loan-to-value ratios, debt-to-income ratios (DTI), and product and documentation types, but it does not consider income or income variability (we only have access to DTI; the lender will have more detailed financial information).”

Mortgage Loan Denial: Racial Profiling?

Statistics can be molded to show whatever authors want them to show, and both charts seem to portray that more minorities are denied mortgages than whites. Of course, there could be many reasons for this, and the raw data just does not tell us what that is.

Some think, however, that if a person of color walks into a mortgage lender’s office—even if they have a down payment on a house–the would-be borrower is automatically subjected to a higher level of scrutiny that then causes them to become credit denied. While this can be possible, these anomalies don’t guide the way we do business at C4D.

Down Payment on a House: We Can Help

Whether you are Asian, white, black, Hispanic or a Native American, we just don’t care. We know that good people can simply have bad credit problems. We understand that your credit rating may have been injured because:

  • You lost a job within the last year.
  • You have a lot of student loan debt.
  • Your credit cards are maxed out.
  • You got a divorce.
  • You owe taxes to the state.
  • You have legal judgments against you.
  • You declared Chapter 13 or Chapter 7 bankruptcy.
  • You defaulted on a personal loan.
  • You faced foreclosure.
  • You don’t have a large enough down payment on a house.

There can be many other reasons that you may not qualify for traditional financing, but we at C4D are here to help you. We utilize a very innovative program called MN contract for deed. It works like this:

  • You find a house.
  • We buy it.
  • We sell it to you on a MN contract for deed basis.
  • We keep the deed until you make all of your payments.

Yes, you still will need a down payment on a home, but we consider things that a bank does not.

Our Process to Help with Your Down Payment on a House

Down Payment Assistance

Fill out our online application, and we will evaluate your situation. If there is any way we can help you, we will first talk on the phone, and then we will get together personally. We do work with a local bank, and the bank respects our judgment. If we can make a good case that you have a down payment on a house and that you will be able to make the payments, we do everything possible to get the deal done.

We have said it before:  We love traditional financing and wish that everyone could get a standard mortgage. If you can’t, however, don’t give up. Talk to us today!

Signs of a bad realtor

7 Things Real Estate Agents Must Do For Sellers

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You need to be able to spot the signs of a bad Realtor when you see them. It’s a must!

Signs of a bad realtor

You can be paying big money to your listing broker when your home sells. If your property goes for $400,000, brokers could get $24,000. Sure, the listing broker will share commissions with the buyer’s agent, but still, that’s a lot of money. Because your Realtor is going to handsomely profit from his or her work, you can expect your agent to do the following.

Signs of a Bad Realtor #1: Doesn’t Correctly Price the Home

Your agent needs to have total local market knowledge and needs to know the price range where your home will sell. There is nothing worse than riding down the market as buyers wait for you to continually lower the listing amount of your over-priced home. Don’t think that Joe Smith—the guy that sold grandma’s condo in the suburbs—is automatically going to know how much your downtown unit is worth, unless he can prove that he understands your local market.

Signs of a Bad Realtor #2: Doesn’t Do A Great Marketing Job

Your expert should not be showing signs of a bad Realtor. Instead, they should use every available too to sell your home. Facebook, MLS of course, Craigslist, his or her network of brokers, Pinterest and any other Internet based platforms need to be used. Any postings and listings must be accompanied by great photos and excellent descriptions. If you have already moved, and your property is vacant, your agent needs to help you with staging. Signs of a bad realtor would include an agent that seems lazy and not Internet savvy.

Signs of a Bad Realtor #3: Does NOT Properly Communicate

Sellers are naturally hyper, and a good Realtor will inform them of his or her availability and communication preferences. If you aren’t presented with something like this right away, you maybe should look for another agent:

“I am available seven days a week by email, phone and/or text. If you contact me before 4:00 p.m., I promise to return your inquiry within four hours. If you contact me after 4:00 p.m., I will be in touch by noon the next day.”

Signs of a bad Realtor would be an agent that doesn’t return calls for days.

Signs of a Bad Realtor #4: Doesn’t Ensure That the Buyer is Qualified

DIY home sellers often make the rookie mistake of taking an offer without vetting the buyer. This can tie up a property for 30 days or more. Your agent needs to make sure that all offers to be considered are from bank pre-qualified buyers, or those that can show they have cash.

For Sale Sign

Signs of a Bad Realtor #5: Poor Negotiation Skills

Think about it — if you and the buyer are $5000 apart on a $400,000 transaction, that $5000 only means an additional $300 in commission for the brokers. The brokers, at that point, may just want to get the deal done and collect their $24,000 commission, and they would probably sacrifice $300 to be able to move on. You, on the other hand, may need that $5000, and a good broker will represent your interest, not his or hers.

Commission Breakdown

Signs of a bad Realtor would be an agent that puts pressure on you to quickly agree to a lower offer.

Signs of a Bad Realtor #6: Doesn’t Attend the Home Inspection

The home inspection carries a lot of weight, and you need to be represented at the inspection. That way, you’ll know what the inspector sees as problems before he sends his report to the buyer. It is better to be surprised early than at the last minute.

Signs of a Bad Realtor #7: Can’t Finalize Loose Ends for Closing

Hearing the words “clear to close” is a great thing, and your agent should be with you every step of the way to help make this happen. He or she needs to be in constant contact with the buyer’s broker, the title company, the bank, and the inspector.

Closing on your house

You’ve made a wise decision if you have hired a Realtor during the home buying process —just make sure you and your broker agree upon expectations.

First Time Home Buyer Checklist

First Time Home Buyer Checklist: 15 Quick Tips

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You’re going to get a lot of advice thrown at you as you attempt to purchase your fist home. Financing, inspections, Realtors, credit scores and many more similar issues will need to be dealt with. First, however, check out the following 15 tips on our first time home buyer checklist:

First Time Home Buyer Checklist

1) Is Real Estate Recession Proof?

First Time Home Buyer Checklist Recession

No, it’s not. If you buy at the top of the market, realize that you may not be able to turn around a year later and make a profit or even get your money out if the economy has tanked. Sure, if you wait long enough things might turn around, but if you need your money quickly in a bad economy, realize that a reasonable sale might take quite a while to consummate.

2) HOA

Thought HOAs were just for those that bought condos? Think again, as buying into a deed restricted community governed by an HOA may mean that you can’t paint your house purple—even if you own it outright. This is an important piece of the first time home buyer checklist. Don’t forget about extra fees!

HOA

3) I Qualified for a $450,000 loan

That’s great, but it doesn’t mean that you have to stretch your budget and buy a $450,000 home. Buy only what you can afford, and don’t pay attention to any higher amount that you have qualified for.

4) Good Money

First time home buyer checklist number four — beware of exotic low-interest, no-interest or no down-payment loans as these can be costly in the future.

5) Check Those Renovations

You may be a woodworking DIY person, but you certainly don’t want to inherit the first-time renovations from the previous accountant owner that couldn’t figure out how to use a reciprocating saw.

6) Location

Pick your location first, and then your home. A perfect home in a bad location really isn’t a perfect home.

7) DIY

If the home your want does need repairs and you are handy, DIY in this case may be a good option. Just make sure you know what you are doing. And of course, a fixer-upper can be purchased at a better price.

8) School District

Unless you are considering private schools, make sure you properly vet the neighborhood schools before you make any offers. Consider using a tool like Niche to find the best schools in your neighborhood or city.

School District

9) Survey

Tell your Realtor you want a current property survey. This will accurately map the borders of your property and help avoid disputes later.

10) Good Inspection

Don’t look at the inspection as possible impediment to closing. A good inspector may find enough things wrong so that you will want to walk away from the deal.

11) Negotiate

Negotiate like you don’t care if you get the house or not. Sure, this is easier said than done, but great negotiators always operate this way.

12) Yard

If the yard is really ugly and you don’t want to rejuvenate it yourself, consider asking the seller to provide a landscaping credit.

Landscape for First Time Home Buyer

13) Low-balling

Don’t look at every home as an opportunity to offer $50,000 less than the asking price. First the sellers—and then your Realtor—will not take you seriously after you establish a pattern of this behavior.

14) Building Plans

Go to the city hall and check upcoming building plans. That way you won’t be surprised when that great park-like open field a block away becomes a 300-unit apartment complex.

15) Extra Cash

Don’t walk away from your closing with the key and no cash left because unforeseen expenses can be counted upon. If we all could make free money, this wouldn’t be an issue, but you need to be careful.

Remember, your first home is a big deal, and we hope our first time home buyer checklist has brought some important points to your attention. And if you are turned down by the bank, don’t give up. Contact us and we will let you know how we can help.

Your Guide To Buying A Foreclosed Home

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Buying a foreclosed home became extremely popular about a decade ago. Why? Well, the problems that began in 2009 led to a meltdown that created scores of opportunities for both investors and previously foreclosed homeowners that wondered if they’d ever purchase a home again after foreclosure. 

Over 5 million homes were foreclosed since then, and many investors have looked upon these as opportunities.

Since HGTV shows like Flip or Flop have become popular, many people think they are familiar with what a foreclosure is, and they think they can make big money by picking off great property values before someone else does. We advise you to be careful.

What is Buying a Foreclosed Home?

When you are looking at a home that is listed as a foreclosure, you need to understand what that means. Is this home in foreclosure, is the seller trying to avoid foreclosure, is someone offering a short sale, or is the property genuinely bank owned?

Buying a Foreclosed Home

How Does Buying A Foreclosed Home Work?

Usually, after a homeowner crosses the 90 day past due mark, the lender will begin the foreclosure process. This simply means that the lender begins the legal work necessary to take back the collateral—the home—that the homeowner placed as security with the lender. Unfortunately for Minnesota debtors, MN foreclosures are many times non-judicial; this means that properties can be taken back outside of the court system. Foreclosures can take a lot longer in judicial foreclosure states like Wisconsin. Our friends at alllaw.com tell us this happens as follows in Minnesota:

Notice of the Foreclosure

In Minnesota, a foreclosing party must give the defaulting borrower the following notices.

Notice of the default. In most cases, the foreclosing party must mail the borrower a written notice of any default before officially starting a foreclosure. The notice must provide the borrower with 30 days to cure the default.

Notice of availability of foreclosure prevention counseling. Along with the notice of default, the foreclosing party must also provide notice that foreclosure prevention counseling services are available and that the homeowner’s contact information will be sent to an approved foreclosure prevention agency.

Notice of sale. To start the foreclosure process, the foreclosing party must first file a notice of the pendency of the foreclosure with the county recorder’s office. After filing the notice of pendency, it must publish a notice of sale for six weeks before the sale. The foreclosing party must also serve a notice of sale to the occupant of the home four weeks prior to the sale.

Foreclosure advice to owners and notice of redemption rights. Along with the notice of sale, the foreclosing party must provide a foreclosure advice notice, which provides information about how to get help, as well as a notice of redemption rights providing information about what happens after the foreclosure sale.

The foreclosure advice notice must also be provided with each subsequent written communication mailed to the borrower. A foreclosing party is deemed to have complied with these requirements if it sends the foreclosure advice notice at least once every 60 days up to the date of the foreclosure sale.

In Foreclosure

So if you are looking at buying a foreclosed home, the actual home shown as “in foreclosure” is probably somewhere in the process described above. If you are interested in a property while it is in foreclosure you have to deal with all parties including the homeowners and all lenders. You can’t make a deal with only one of the parties involved.

Short Sale Forclosure

Short Sale

Sometimes the homeowner gets the lender to agree to a short sale. This means that the lender may agree to take less than what is owed on the property in order to streamline the process and allow the homeowner to avoid a foreclosure appearing on their credit report. These deals can take quite a while to engineer, and again, all parties need to agree.

Bank Owned

When the foreclosure process has been completed and the collateral has been returned to the lender, the home is termed bank-owned. At this point you only need to deal with the bank or its agents, since the bank is the legal property owner.

Forclosed Home

Strategies

Foreclosures, like storage shed content sales, used to be a more quiet and shadowy business. This isn’t the case any longer, however, as foreclosed properties are commonly inundated with multiple offers as many people want to cash in on the misfortunes of others. The best way to attempt to buy a Minnesota foreclosure is with cash.

Once you have located the property you are interested in, do your diligence and find out who actually owns it. Then, if you have the power of a cash offer, you may be able to make a quick deal. Remember, with foreclosure deals we recommend that you get qualified legal help, and please be advised that this article does not constitute legal advice.

If you have any additional questions, please feel free to contact us here.

Second Mortgage

A Second Mortgage: Should You Take It Out?

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We know from the economic meltdown that began in 2008 that using your house as an ATM may not be the best idea. A fat line of credit that can be accessed with a debit card or even checks can be quite tempting, but that doesn’t mean that you should automatically think about taking out a second mortgage loan to tap your equity—unless you have a good reason.

Taking Out a Second Mortgage: Not So Good Reasons

You should only borrow money if you need it. That may sound simple, but in some countries, people borrow money simply because they can. Even in the U.S. in the early 2000s, many people based their “wealth” upon the amount of money they could borrow. Some people with only $5000 in savings but with $100,000 of available credit thought they were well off because they had the ability to raise a substantial sum. Therefore, they acted upon any chance to borrow money and loaded up on credit lines. If you are borrowing money only because you can, that’s not a good reason.

Taking Out A Second Mortgage

Taking Out a Second Mortgage: Finances are Tight

This happens for a reason. If you spend more than you make, you will be cash-flow negative, and that will cause you to borrow. If you have amassed considerable credit card debt, it may be very tempting to take out a second mortgage at a lower combined interest rate and pay off those cards. Seven or eight percent is a lot better than 27.9 percent, but if you don’t cut up your cards after you have paid them off, you may not be able to resist the temptation to max them out again.

Finance are Tight

You Just Need Some Breathing Room

Breathing room is great, but if the forces that are suffocating you are not dealt with, you won’t make any progress. If your $800 monthly utility bill is killing you, turn down heat, turn up the A/C, quit watering your lawn or turn out the lights. If you don’t act, you’ll soon see another $800 energy bill, and you’ll have to figure out how to pay that. Borrowing against your home for monthly expenses that you can’t reduce is not a good idea. Instead of this, start looking for the best side hustles that allow for some extra income!

Economic Stimulus

Some Better Reasons for Taking Out a Second Mortgage

There are, however, some good reasons to borrow against your home:

  • You’re starting a business.
  • You want to go back to school and can’t get reasonable student aid or loans.
  • You want to help a family member.
  • You want to start a remodeling project that will increase your home’s value.
  • You want to assist your children with some expenses.
  • You found a great investment opportunity.

Like any other loan, make sure you shop around to get the best terms.

The Contract for Deed Crew

While we don’t do second mortgage loans, we at C4D can assist you with the purchase of your home. We are more flexible and understanding than a lot of banks, and we are experts at using the MN contract for deed as a path for true home ownership. If you have any questions, visit our site. We are here to help!

Minnesota Realtors: More Contract For Deed Deals

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Some Minnesota Realtors view the current economic situation as murky with darker clouds on the horizon. Interest rates are moving higher and some mortgage rates have crossed the psychological five percent barrier. Top luxury home prices in places like Austin, TX have begun to stagnate and actually drop. While unemployment is at record lows, inflation is starting to re-emerge as a threat, the price of oil just recently fell from a six-year record high, and of course there is geo-political chaos. None of these factors are good for the housing market.

Minnesota Realtors Change in Real GDP

The Comeback of No-Doc Type Loans

We are almost 11 years removed from the Great Recession that began in 2008. Some new to the real estate business may have been in their early teens when this occurred and may not remember, but no-interest and no-doc loans were part of the problems that ultimately crashed the economy.

One of our older CD4 clients tells us that they were able to get their original home mortgage with a one-page typewritten business profit and loss statement. The mortgage loan officer said, “Are you making money?” and when he got an affirmative answer, they were approved.

In the early and mid-2000s, people used their homes as ATMs, and loan officers aided by appraisers approved scores of loans. Some were no interest, some were adjustable rate, and many were made without any debt-to-income ratio verification. If someone showed that their business cash flowed significant dollars, profits and income were ignored.

Check Out CNN Lately?

Listen to CNN today and you will hear ads for a mortgage company that claims that profits don’t matter–only cash flow does. When companies can advertise nationally and get customers for low documentation mortgages—even in view of what happened in 2008—it’s time to take notice and get worried.

CNN Real Estate

The Next Time for Minnesota Realtors

The U.S. economy is cyclical, and after the second worst downturn in history, we have now seen the longest recovery. Even though there are those that say “Well, this time is different,” savvy Realtors know that is not true. The next recession–whether it’s almost here or won’t arrive for another year–will cause difficulties for Minnesota Realtors. When the GDP falls, the stock market retreats, and interest rates go up, money tightens and loans can be hard to get. And therefore, you need C4D.

Global Trade Contract For Deed

What We Do

We at C4D use MN contract for deed to help prospective homeowners that were rejected for traditional financing to realize the home ownership dream. We use our strength and knowledge as we buy homes and then resell them to your clients who were rejected for traditional financing or unable to obtain it. Yes, your clients need a job and provable income, but we can work with issues like divorce, tax liens, garnishments, bad credit and large student loan balances. We can help where others have failed.

Listen, we do not want to see an economic downturn, and we genuinely hope that one day all of our clients will be able to get traditional financing. Until that time comes, however, Minnesota Realtors can call us with rejected deals and we’ll see what we can make happen. We’ve helped a lot of people.

How to find a good minnesota realtor

How To Find A Great Minnesota Realtor

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How to find a good realtor? If you’ve tried, well, you’ve probably realized it’s not as easy as it sounds, right?

How to find a good realtorFirst, there is a difference between a Realtor and a real estate agent. You can be a real estate agent without becoming a Realtor. If you are licensed in your state, you can help people buy or sell commercial or residential property. The State of Minnesota publishes a detailed booklet that explains the real estate licensing process, and you can find it here:

http://mn.gov/commerce-stat/pdfs/re-license-guide.pdf

But don’t confuse licensed real estate agents with Realtors, because there is a difference. According to inman.com, “A Realtor is a trademarked term that refers to a real estate agent who is an active member of the National Association of Realtors (NAR), the largest trade association in the United States.” NAR has certain requirements and members must first agree to abide by its ethics code.

Finding a Great Realtor in MN

It doesn’t matter where you’re coming from; you might be moving from a small Cincinnati apartment to a Minneapolis single family home, but whether you contract with a real estate agent or a Realtor, it’s important that you know how to vet and find the person that best fits your needs. And bankrate.com says that these seven items are paramount.

Talk with agents’ recent clients.

At the first meeting, ask for a list of clients. If these are all relatives, beware, because your prospective agent may not be very experienced. Look for a track record of satisfied clients that are happy to provide referrals. While you may want to help a new agent break into the business, that may not be in your best interest.

Check for license and disciplinary actions.

Licensed real estate professionals are regulated, and if they have been disciplined, there will be a public record of this. Some ways agents get in trouble are:

  • Forgetting who they represent.
  • Co-mingling client funds.
  • Seeking kickbacks from lenders.
  • Showing incompetence.
  • Forgetting that the interests of the client should come first.

Ask about professional awards.

OK, so million-dollar club status is not that hard to obtain, but awards do show that agents or Realtors have sold some properties.

Here’s a rundown from another experienced professional:

Select an agent with the right credentials.

If agent Paul Johnson sold your wife’s office building, that doesn’t guarantee that he knows anything about residential real estate. Similarly, an upscale Realtor that specializes in the Milwaukee suburbs may have a tough time understanding how to sell an inner-city property.

Realtor Credentials

Find out how experienced an agent is.

How many clients? How many closings? How many accepted offers? How many failures? How many rejected deals? Ask these questions.

Look at the agent’s current listings.

If your prospective agent’s listings are all rural farmland, and you have a downtown condo to sell, you may have the wrong person.

Gauge the agent’s knowledge of the area.

Does your agent know the schools? The shopping areas? The crime rates? What the last 10 sales have been? A negative answer means you should look elsewhere.

Getting It Done

Most of all, you need to find someone that can get the job done. We at C4D are like that, because we specialize in MN contract for deed financing. We love traditional mortgages, but if you can’t get one, tell your Realtor to contact us ASAP. We can help where others have failed!

Home Repair

The Surprising Ways Your House Costs You Money

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If you’re a current homeowner or a prospective buyer, saving money is surely on the top of your priority list, that’s a given, right? However, occasionally, there are instances where you may not realize that you’re leaking money (almost literally). Making sure that your property is running efficiently and that your home repair is on point are two of the most important money-saving tips around.

So, let’s take a look at some of ways we can help you save money in and around your home.

Home Repair Tip: Fix Your Drains

Ever hear your taps dripping in the night? Or, maybe you’ve turned off all the water after cleaning only to find that it’s still dripping away? Well, while it may not seem like a huge amount of water is being wasted at first glance, it can end up costing you a small fortune in the long run.

Let’s put this into perspective; let’s say your faucet leaks roughly 10 drops of water per minute, that equates to 3 liters of water a day, which is around 90 liters a month. This can mean wastes of 347 gallons of water every year. How much does this cost? Well, it depends on your water supplier, but a leaky faucet could be costing you far more than you think. Similarly, any blocked drains or damaged drains that are left untreated can result in nasty blockages, which may then require professional intervention.

Hidden Leakages and Water Damage

Another water-related issue comes in the form of hidden water storage. Checking for water build-up is crucial, especially if you’re looking to move into a new property. Water has a nasty way of hiding in places that are either difficult to reach or hidden. In most cases, this is caused by a fault in the property’s drainage system or a build-up of water deposits (usually on the roof or gutters) that do not drain properly.

Be sure to check for signs of this, as if it is left untreated, not only will it require a drain inspection, but you may find yourself having to redecorate your walls and/or ceilings.

Repair with Double-Pane Windows

The thought of installing brand new windows is never easy to digest as it’s known to be a fairly expensive practice. However, the reason why it’s so important isn’t just aesthetics. In fact, installing new windows actually saves you money in the long run.

So, why is this? To put it simply, single-pane windows are not efficient at keeping the heat inside your property, nor are they too good at keeping the heat out in the summer months! So, instead of constantly adjusting your heat and temperature, it might be worth considering installing double-pane UPVC windows that help retain heat.

Additionally, installing double-pane windows can save hundreds of dollars each year, so it’s definitely something to consider.

Insulation Issues

In a similar fashion to double-pane windows, a properly insulated home can save you a small fortune. The cost of installing effective insulation is low in contrast to the amount of money you’ll be saving in the long-run. Arguably the most important area to install insulation is in your walls, and while there are varying kinds of insulation, cavity insulation is one of the better options if you’re looking to save money.

Additionally, insulation is fairly low maintenance and usually lasts a life time.

Rising Energy Bills (Turn to Solar Energy?)

With the world relying more and more on green energy, many people are beginning to search for more efficient ways to power their homes.  This has lead them to solar power and the many benefits that come from this source of power.

Installing solar panels by yourself will cut some costs. However, it’s recommended that you hire a professional to install the wiring and metering, as this requires connecting the system to the electrical grid. This can be a seriously dangerous task for those who are inexperienced and in severe cases can lead to injury. According to Westline Professional Electricians founder and director Jordan Vellutini, make sure to contact a certified electrician if you’re looking to efficiently install your solar panels.

All in all, acting on these issues early is the key to saving money. Much like you’d hire a maid service to get your place cleaned. The longer you allow these problems to persist, the more damage they will inevitably cause. Many of the above tips are long-term investments, so while they may seem expensive to begin with, you’ll be glad of your investment as soon as you’ve committed!

Homebuying After Divorce

Buying A House After Divorce: Yes! It’s Possible.

 1000 500 Sam Radbil
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Buying a house after divorce is a huge issue for many people across the country. To start, divorce can cost you a fortune. What else you ask?

Well, let’s face it, divorce is rarely stress free, and your recent interaction with the family court system is probably something you never want to go near again. You’ve spent time away from work, agonized about visitation rights, thought endlessly about money making ideas and paid some hefty legal bills, but the fun is just beginning because your spouse is occupying the residence and now you need to buy another one.

Buying A House After Divorce

Why Is That a Problem?

If your name is on the deed and the mortgage, even though you may not be living in the house, you are 100 percent responsible for that monthly payment according to potential mortgage lenders. If your ex has been making that payment, lenders will want proof that he or she has been able to handle the obligation for the past 12 months, and will ask for documentation. Yep—more bank statements, ACH confirmations and cancelled checks for you to dig up.

The bank may even want to see proof of your ex’s income to make sure that you are not making house payments in her name. Then they will probably ask for information about where you are living even if you are renting. Who is paying for that? Can you produce the proper documentation that shows you can handle your monthly rent without assistance?

Co-Sign Home Loan

Even if you can definitively prove that your ex has successfully made 12 months of payments, you could still be denied because you are, in effect, still a co-signer on the mortgage. This can also lead to MN bad credit as your credit score could be impacted.

Alimony and Child Support

Child Support

Not your favorite words, we know, and any court-ordered payment amounts will count against your income and injure your debt-to-income ratios. A $1500 monthly payment can cause outright rejection, or at the least, may cause you to qualify for a much smaller loan amount.

Have You Ever Been Sued?

If you were involved in a divorce you probably were, and must answer this question affirmatively. The answer will need lengthy explanation and can open the door for other queries from the lender.

Divorce Decree

Of course, the lender is going to want to see your fully executed decree; they are not going to take your word for anything.

Joint Accounts

Student loans, credit cards, autos, furniture purchases and more can be considered joint accounts. Even if your ex splits these with you, you will need to get your name off of the ones he or she is now responsible for. Again, if you name is on it, the lender will assume you are responsible for the debt, and you may qualify for nothing.

Joint Bank Account

The Answer: Buying A House After Divorce

When traditional financing brings you roadblocks instead of the key to a new home, there can be answers, and MN contract for deed can be an excellent way to become a homeowner—even if you are in the midst of a divorce. Our experts at C4D, a local Minnesota company, have, over the years, worked out a method to make you a homeowner.

Using MN contract for deed, a legitimate and recognized alternative financing method, we can look past things that traditional lenders can’t. Yes, we still want income proof, you have to have a job, and have to be able to afford your payment. We, however, view these requirements differently than traditional lenders, and we helped many recently divorced persons again purchase homes.

Contact us today to find out the details!