Everyone in the mortgage world is feeling the pinch these days. During the past several years 100% programs and other risky products were abundant and we are all feeling the affects. Mortgage Insurance Companies (MI) were right in the middle of this. They are the ones who insured loans over 80% loan to value.! Safe to say business was very good for them. Well not so much anymore and they have of course scaled back. This is what is necessary, but the changes keep coming. Recently a disturbing trend is taking shape. Two major MI companies (PMI and AG) have decided to not insure loans made by mortgage brokers! This is a huge move that will have the broker industry reeling. I know first hand small broker's that are scrambling and re-evaluating their business plans. If all of the MI companies follow suit, many will be forced to shut down. We at Flat Branch Mortgage are lucky that we recently switched over to be mortgage bankers as opposed to brokers. This way the changes will not affect us in the same way. However, if we hadn't made this move we would be in the same boat as all of the other brokers. Not a very fun seat to be in that is for sure! It remains to be seen "if" the others will follow suit and if this is a temporary decision or a permanent one. It seems to me that this is a drastic move and a bit of an over reaction. I feel sorry for the small businesses that do business the right way that are being caught up in this mess. It seems there would be a way to rate the quality of business each broker does. If the quality is poor, then cut them off! A blanket policy is harsh. While it may be good in the short term for us (reduced competition), I feel it is bad for he consumer. We have already seen how well the "BIG BANKS" run their businesses. If all the small brokers are cut off who will be their competition. Who will keep them honest and competitive in the marketplace? This is very important in my eyes. If they are competing against themselves they can continue to take the bailout money, hoard the cash, and set the market themselves. Doesn't seem like a recipe for success to me. This is just one of the many industry changes taking place behind the scenes. Be sure to check back for updates as it will be interesting to see how this plays out.
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Flat Branch Mortgage
Wednesday, February 25, 2009
Monday, February 23, 2009
Tips For First-Time Homebuyers. (Guest Post)
By Jody Calvin
Prudential Vision Properties
www.PrudentialVision.com
Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be.
Here are six common mistakes to avoid.
1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (http://www.hud.gov/) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.
2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.
3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.
5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?
6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.
Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.
Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Prudential Vision Properties
www.PrudentialVision.com
Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be.
Here are six common mistakes to avoid.
1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (http://www.hud.gov/) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.
2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.
3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.
5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?
6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.
Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.
Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Wednesday, February 18, 2009
Mortgage Relief Plan
Today President Obama unveiled his Mortgage Relief Package. This is geared to fight off foreclosures and attempt to stop the mortgage crisis from deepening. This is long overdue for many Americans. Unfortunately it is too late for far too many who already succumbed to foreclosure. It will be interesting to see how the incentives actually will affect the servicers and investors who have been stubborn in the modification process. All of us here in Missouri are well aware of what is taking place across the Country, but we are pretty insulated from the horror stories going on in California and other parts of the Country. Imagine more than half of entire neighborhoods being vacant as a result of this mess. It is a reality for many and we can only hope this initiative will help.
The plan includes:
The plan includes:
- Helping borrowers who owe more than 80% of their home's value to refinance and reduce their monthly payments.
- Creating a $75 billion homeowner stability initiative to reduce monthly payments for at-risk borrowers by subsidizing interest rates. The goal would be to bring payments to no more than 31% of a borrower's income.
- Providing multiple incentives to servicers to modify loans and to proactively help at-risk borrowers while they are still current in their payments.
- Creating a $10 billion fund to protect investors and servicers against further home price declines.
- Requiring all financial institutions receiving government funds to participate in a standardized loan modification program, while seeking to have all federal agencies that own or guarantee loans also apply the guidelines.
- Allowing judges to modify mortgages during bankruptcy, a measure the financial industry has strongly opposed.
- Providing more Treasury Department backing of Fannie Mae and Freddie Mac and expanding the number of mortgages the agencies back.
More details of this plan will be available as the day and week goes by, but you can view the whole story here or visit CNN Money.com.
Brought to you by:
Flat Branch Mortgage, Inc.
Tuesday, February 17, 2009
Flat Branch Mortgage In The News!
President Obama is set to sign the new stimulus package today. Part of this package is the often discussed New Home Buyer Tax Credit. Last week KOMU-TV aired a story that featured Flat Branch Mortgage President Jim Yankee and RE/MAX Boone Realty's Dale Davis (The Jacobs Group). Dale just so happens to be this months Featured Realtor on www.flatbranchmortgage.com. Click Here to view the featured story that aired on KOMU-TV.
Brought to you by:
Flat Branch Mortgage, Inc.
Brought to you by:
Flat Branch Mortgage, Inc.
Friday, February 13, 2009
What Is The Scoop On This Tax Credit????
WOW, have the questions pertaining to the Tax Credit been fast and furious. First let me say that Flat Branch Mortgage and any of our employees are not qualified to give tax advice. Please consult your accountant to find out how the credit can help you! However, I have had several discussions with accountants about how our client's can benefit! The Senate is holding the final vote this evening on the Stimulus package. In it is a revised version of the Tax Credit. Alot of numbers and rumors are flying around as different proposals were being leaked. The latest update is that this is now $8000 and it is for First Time Home Buyers. This is defined as not owning a home the last 3 years. This will not have to be paid back unless you sell the home within 3 years. The credit is also refundable so in basic terms it works like this. Come tax time next year your income and deductions will be calculates as normal. Once your total Tax due is calculated, this amount is reduced by your credits. This is where the Tax Credit comes in. For example, if you end up owing $5000 in tax, this would be reduced to Zero! Then you would get a refund of the remaining credit ($3000) and you would also get back the money you paid in during the year that was withheld from your paycheck! So as you see it is different than getting a check for $8000. You can choose to adjust your withholdings as well, but you get the point. Pretty nice perk. I sure wish I had it when I bought my home! Safe to say it is exciting for First Time Buyers. Contact your accountant to confirm how you can benefit and then contact Flat Branch. We look forward to serving you!
Check back next week. More details will surely be posted.
Brought to you by:
Flat Branch Mortgage, Inc.
Check back next week. More details will surely be posted.
Brought to you by:
Flat Branch Mortgage, Inc.
Thursday, February 12, 2009
5 Tips To Help You Sell Your Home Fast! (Guest Post)
By Jody Calvin
Prudential Vision Properties
www.prudentialvision.com
There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:
Price It Right
The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.
Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.
Make Your Home Irresistible
Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.
Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.
Create Traffic
If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.
Go with a Professional
Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience.
Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.
Offer Incentives
Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.
Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.
Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Prudential Vision Properties
www.prudentialvision.com
There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:
Price It Right
The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.
Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.
Make Your Home Irresistible
Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.
Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.
Create Traffic
If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.
Go with a Professional
Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience.
Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.
Offer Incentives
Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.
Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.
Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Tuesday, February 10, 2009
Go Mizzou!
Today I have decided to take a break from the norm and talk about something fun and positive! By this I mean, the Missouri Tiger Basketball Team. If you are from this area it is hard to not be aware of what took place last night. The first installment of the MU/KU Border War (Basketball Version) was fought out last night at Mizzou Arena. It was a sellout crowd and everyone was treated to a great game! MU capped a furious, hard fought comeback with a late bucket to prevail 62-60! This marks the first time Coach Mike Anderson has beaten KU and shows MU is really headed in the right direction. While the KU game always brings a sellout, it was sure nice to see how we perform with that much energy in the building. I just hope we can continue to support them like that. That means during good and bad times. We will meet up with them again in Lawrence, KS and I am sure it will be another tight one! There are only a few home games left so make sure you get out to show your support! They are really fun to watch and it will sure be nice watching them perform in March!
GO TIGERS!
Brought to you by:
Flat Branch Mortgage, Inc.
GO TIGERS!
Brought to you by:
Flat Branch Mortgage, Inc.
Thursday, February 5, 2009
$15,000 Tax Credit?
Last night the Senate passed a $15,000 Tax Credit for ANYONE who buys a home. This applies for new or existing homes as long as they are your primary residence. Currently the tax credit is $7,500 and is for First Time Home buyers only. It also must be paid back over 15 yrs (interest free), however legislation is already in the works to remove the payback feature. If this $15,000 version fully passes (part of current stimulus package being voted on), it will be a great boost! It will not be an end all be all or a quick fix, but it will help spark some interest. This is expected to cost $19 Billion. While the cost is steep, it is well worth it. Especially with all the money being thrown at our economies problems that has not worked. Most first time home buyers are not necessarily sitting on the sidelines anyway. They have no ties and if they want a home, they can buy one. Prices are low, rates are low, and tax credits are already available. Now everyone can have a crack at the tax credit! Many still can't take advantage or won't because they have a home to sell or they are locked into a particular situation that keeps them from buying. So the idea that everyone will be out and about buying homes is false. However, if passed this will surely generate some buzz and excitement that was missing from the marketplace. I have had several conversations with Realtors and others about this very subject. Most were wanting this and now it is a possibility. The other major question about this tax credit is how it effects the closing. This is something that will not effect your closing by providing additional funds to put down or help with closing costs. This is a TAX credit that will be factored in when you do your taxes for the year you purchased the home. I spoke with an accountant about this briefly last night and he did bring up one good point. With such a large credit on the table to add to the refund you probably already receive, he offered an idea. Since you know this is on its way you can get with your payroll department and adjust your withholdings. This will allow you to withhold less from your paycheck so you can have more money in your pocket NOW. The whole idea behind withholding is so you don't owe a huge chunk at tax time. The downside is you can't take advantage of your full pay in the meantime. It comes back to you in the form of a tax refund. So by adjusting your withholdings you can access some of your future credit each month by utilizing more of your monthly pay that normally would be taken out. Make sense? I know it isn't as exciting as getting a big fat check, but it is better than nothing and you will still get a hefty tax credit and in turn tax refund come tax time!
Brought to you by:
Flat Branch Mortgage
Posted by: Eric Hemmer
Brought to you by:
Flat Branch Mortgage
Posted by: Eric Hemmer
Tuesday, February 3, 2009
Resolve to Get Your Home Documents Organized (Guest Post)
By Jody Calvin
Prudential Vision Properties
Office: 573-449-6200
Email: info@PrudentialVision.com
Website: http://www.prudentialvision.com/
As a homeowner, you begin to accumulate all sorts of records and papers the moment you made the offer on your home. Loan documents, inspection reports, title insurance policy, home improvement receipts, appliance warranties are just a few of documents that you may at one time or another need. Would you be readily able to locate these items? Are they filed away or in different junk drawers around the house? Knowing where these items are can save you a lot of time and even money in the long run.
Consider investing in a record-keeping system. It doesn’t have to be expensive. You can purchase an accordion file and label each flap with a different category. Then use the following tips as a guide to get started.
Contracts and Legal Papers
Keep all the papers signed and/or given to you at the closing together in one place, preferably in a safe deposit box. These documents include the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and any other reports, and title insurance policy. You will need these records again if you decide to refinance or sell your home.
Insurance Policies
Keep a copy of all insurance policies relating to your property together. This may include homeowners, flood and earthquake policies. With these documents, keep a list of insurance agents or companies and copies of correspondence related to claims.
Purchase and House Data
It’s also a good idea to keep a copy of the original listing of your house, comparable market analysis, floor plans, blueprints, and historical information. If you own a newly built home, keep a list of contractors and material suppliers as well.
Property Taxes
Keep your tax bills and record of payment for as long as you own the home and possibly even longer. You may need these items if your tax returns are ever audited.
Home Maintenance and Improvements
Records in this category include receipts for repairs or replacement expenses, names of contractors, contracts, and a log of maintenance tasks.
Warranties, Manuals and Receipts
These documents provide you with a proof of purchase date and determine service and parts guaranteed. In addition, the manuals usually provide care information so you can help ensure your household appliances are being properly maintained. You should keep your warranties, manuals and receipts for these items for as long as you own the appliances.
Home Inventory
If you were ever to lose any of your possessions due to fire, burglary, or vandalism, having a home inventory can help you avoid a lot of heartache and make it easier when filing an insurance claim.
Start with a sheet a paper for each room in the house. Go around the room and list every item. Don’t forget the attic, basement or other storage places. For each item, write the original cost, purchase date, replacement cost, model number, brand name, where purchased, and a general description. You can also use a computer software system so that you have an electronic copy.
Besides a written inventory, take photos or video of each room for visual documentation. It is also a good idea to arrange valuable collections, silver, jewelry, etc. and take close up photos.
Keep a copy in your home files and the originals in a fireproof safe or safe deposit box. Make sure you update your home inventory photos and list at least once a year.
Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents later on.
Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Prudential Vision Properties
Office: 573-449-6200
Email: info@PrudentialVision.com
Website: http://www.prudentialvision.com/
As a homeowner, you begin to accumulate all sorts of records and papers the moment you made the offer on your home. Loan documents, inspection reports, title insurance policy, home improvement receipts, appliance warranties are just a few of documents that you may at one time or another need. Would you be readily able to locate these items? Are they filed away or in different junk drawers around the house? Knowing where these items are can save you a lot of time and even money in the long run.
Consider investing in a record-keeping system. It doesn’t have to be expensive. You can purchase an accordion file and label each flap with a different category. Then use the following tips as a guide to get started.
Contracts and Legal Papers
Keep all the papers signed and/or given to you at the closing together in one place, preferably in a safe deposit box. These documents include the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and any other reports, and title insurance policy. You will need these records again if you decide to refinance or sell your home.
Insurance Policies
Keep a copy of all insurance policies relating to your property together. This may include homeowners, flood and earthquake policies. With these documents, keep a list of insurance agents or companies and copies of correspondence related to claims.
Purchase and House Data
It’s also a good idea to keep a copy of the original listing of your house, comparable market analysis, floor plans, blueprints, and historical information. If you own a newly built home, keep a list of contractors and material suppliers as well.
Property Taxes
Keep your tax bills and record of payment for as long as you own the home and possibly even longer. You may need these items if your tax returns are ever audited.
Home Maintenance and Improvements
Records in this category include receipts for repairs or replacement expenses, names of contractors, contracts, and a log of maintenance tasks.
Warranties, Manuals and Receipts
These documents provide you with a proof of purchase date and determine service and parts guaranteed. In addition, the manuals usually provide care information so you can help ensure your household appliances are being properly maintained. You should keep your warranties, manuals and receipts for these items for as long as you own the appliances.
Home Inventory
If you were ever to lose any of your possessions due to fire, burglary, or vandalism, having a home inventory can help you avoid a lot of heartache and make it easier when filing an insurance claim.
Start with a sheet a paper for each room in the house. Go around the room and list every item. Don’t forget the attic, basement or other storage places. For each item, write the original cost, purchase date, replacement cost, model number, brand name, where purchased, and a general description. You can also use a computer software system so that you have an electronic copy.
Besides a written inventory, take photos or video of each room for visual documentation. It is also a good idea to arrange valuable collections, silver, jewelry, etc. and take close up photos.
Keep a copy in your home files and the originals in a fireproof safe or safe deposit box. Make sure you update your home inventory photos and list at least once a year.
Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents later on.
Jody Calvin can be reached at 573-881-8771. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
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