Are you considering buying a home or possibly in the midst of a home search?  If so, you likely have learned that there are many steps to the house hunting and buying process.  Coldwell Banker Select Professionals is providing the following list of common mistakes buyers make, so please read carefully and avoid these pitfalls.

1. Forgetting about resale: You may love a particular home, but think twice if it is the nicest one in the neighborhood.  You will have difficulty getting a good resale since the surrounding lower home values will weaken yours. 
2. Going at it alone: Although you may be tempted to handle a home purchase on your own, you will most likely regret it.  Buying a home is a very complex process involving many steps and a variety of people.  There are legal issues, inspections, and insurance and mortgage needs that must be addressed.  You will be thankful for involving a realtor who handles a multitude of transactions a year and knows about the hidden roadblocks so you can safely navigate around them.
3. Changing your financial outlook before closing: When you’ve found a home you want to buy, you may be tempted to make some big purchases to outfit it.  After your loan application has been completed, do not buy anything major (large appliances, electronics, a car) on credit or with a credit card.  Alterations in your credit rations could jeopardize your loan and leave scrambling at the last minute.
4. Putting off getting pre-approved: So you’ve found a house you really like and want to put in an offer.  Since you haven’t been pre-approved yet, you rush to get this accomplished.  In the meantime, another party puts in an offer that is accepted, and you’ve missed out on a great opportunity.  To avoid this, you’re first step—even before going on any showings—should be speaking with a lender and determining what you qualify for.
5. Making snap decisions: You may fall in love with a house the second you see it, but do your best to view the situation objectively.  Does the home satisfy the needs of your family and will the mortgage fit comfortably within your budget?  Make sure you have a thorough list of your needs and wants before you start shopping…preparation is the key to success!

Please contact Coldwell Banker Select Professionals if your looking for personal service and have questions regarding buying a home in Lancaster PA, York PA, Harrisburg PA, Lebanon PA, Hershey PA and Cumberland County.  Be sure to connect with one of our agents at www.cbselectpros.com.  We have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.  Get started on your search today!

Calculating the estimated mortgage payment...

Several formulas exist to help determine how much a lender will allow a consumer to borrow. One of the more accurate formulas is a front- and back-end ratio. It states that the buyer can afford as much as 28 percent of his or her gross-monthly income toward the monthly mortgage payment, assuming that the consumer's other debt payments(credit cards, car loans, student loans, etc...) are less than or equal to 8 percent of his or her gross-monthly income.

To better understand this formula, assume a gross-family income of $5,000 a month. The front-end ratio or maximum monthly mortgage payment is (28 percent of $5,000) $1,400. The back-end ratio is (8 percent of $5,000) $400. Therefore, the buyer can afford a $1,400.00 monthly mortgage payment as long as monthly debt payments are less than or equal to $400. If debt payments exceed the back-end ratio, it will reduce the monthly mortgage payment dollar for dollar. For example, if debt payments are $500, the maximum monthly mortgage payment a person could afford would be reduced to $1,300.

Previously, we described two common equity stripping scams that are prevalent in today’s economic climate.  While the current condition of the economy has many people struggling to make ends meet, you must be conscientious not to fall prey to scammers trying to take advantage of the misfortune of others.  Coldwell Banker Select Professionals has compiled the following list of tips to help you avoid unscrupulous lenders.

1. Ignore solicitations that come unexpectedly by mail, email, phone or door-to-door from people or companies you are unfamiliar with.
2. Avoid agencies that advertise on roadside signs and make offers like, “We buy homes now for cash!”
3. Avoid paying up-front fees.  Any reputable lender will offer a consultation free of charge to help you identify the options that will work best for your situation.
4. Ignore anyone who tells you not to speak with your bank or consult a lawyer.  Information is power, so a lender up to no good will attempt to keep you away from people who can reveal their scam.
5. Do not sign anything you haven’t read thoroughly or had an attorney review—avoid signing documents with blank spaces. Scammers will try to create false urgency to get you to sign documents, but you must resist doing so.

 Remember, if it sounds too good to be true, it probably is. You need to trust your instincts and use companies with good reputations and happy customers.  Please contact Home National Mortgage for more information on refinancing and home loans.  If you’re looking for personal service you can trust and have questions regarding loans, be sure to connect with one of our mortgage specialists at www.homenat.com. They have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.

In situations where the homeowner does not want to retain ownership of the home, the following disposition options may be available as an alternative to Foreclosure. These options affect the owner’s credit rating less than a Foreclosure will.

1. Sell The Home: If there is sufficient equity in the property, the owner may be able to receive more for their property than what is due on the mortgage loan.
2. Assumption: With this option, the owner would sign over the property to another person. That person would then take possession of the home, and take over making the payments.
3. Pre-Foreclosure Sale (Lancaster SHORT-SALE): This option may allow the owner to sell their property for an amount less than what is necessary to pay off the mortgage loan. 
4. Deed In Lieu Of Foreclosure: This option may allow the owner to voluntarily "give back" the property to their Lender without further damaging their credit.

Pennsylvania Housing Finance Agency   www.PHFA.org    HOTLINE  800-342-2397

I.        Lancaster SHORT SALES will have a negative impact on the owner’s credit similar to a foreclosure for a period of time and will most likely prevent them from obtaining another mortgage at a favorable rate for at least 24 months (based on current Fannie Mae rules).

II.    Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. could consider debt forgiveness as income which could result in the owner owing taxes resulting from the sale of the property and/or the forgiveness of debt by the lender.

III. A lender who accepts a Lancaster short sale may pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether the loan qualifies for a deficiency judgment or claim.

IV. The Lancaster SHORT SALE process can be lengthy.  Many lenders will take 4-16 weeks to negotiate and accept a contract and settle.

Have you built up equity in your home and are in need of some extra money, so you’re looking for a way to take advantage of it?  If so, then you’re like a lot of other homeowners during this economy who are struggling to make ends meet and looking for new ways to supplement their income.  Beware, this is exactly the climate that scammers take advantage of—they offer you options and deals that promise you exactly what you want, but they end up leaving you worse off than you started.  Coldwell Banker Select Professionals is providing the following information to inform you about the two of the most popular scams.

Equity stripping scams start with a homeowner who has built some equity in their home but still needs more money coming in each month.  An unscrupulous lender will encourage you to lie about your income level in order for you to get a bigger loan.  This lender does not care that you will now be unable to afford the new monthly payments, in fact, they are banking on this.  As soon as you stop making payments, the lender will foreclose, taking your home and the equity you built up on it.

Loan flipping is another way in which scam lenders dangle the temptation of extra income in front of you in order to get your money.  In this case, the lender will process a refinance for you to help you take advantage of the equity in your home. After you make the first few payments, they will attempt to convince you to refinance again with the bait that the rates have reduced significantly.  What they don’t tell you is that each time you refinance, there are fees and penalties that wipe out any advantage you gained.  You may have some extra cash, but you also have a lot more debt to pay back over a longer time period. 

Please contact Home National Mortgage for more information on refinancing and home loans.  If you’re looking for personal service you can trust and have questions regarding loans, be sure to connect with one of our mortgage specialists at www.homenat.com. They have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.

Cumberland County, Pennsylvania has added over 250 years of county archives to the public website, according a press release this week.  Documents dating back to the county's founding in 1750 are now available for public viewing at www.ccpa.net.

The types of records are non-active, permanent records of various Cumberland County offices & departments (primarily pre-1930).  There are detailed instructions on the website for how to access the archives, and for bigger questions the Cumberland County Archivist is Barbara Bartos, whose contact info is readily available on the site.

For the history-minded, the Cumberland County Historical Society has a page on the county website.  They have an online museum tour which is pretty cool.

The Cumberland County webpage is one of the best in Central PA, and they keep making it better!  If you live in the Cumberland County area it's well worth a look.

Have you located the home of your dreams and are now anxiously awaiting settlement day?  Do you have all kinds of plans for how to decorate or remodel your new home?  This is an exciting time for you and your family, but don’t let it cloud your judgment when you go for the final walk-through.  Coldwell Banker Select Professionals has compiled the following guide outlining some of the most crucial aspects of a final walk through—you will want to be as thoroughly as possible.

The final walk-through is ideally performed the day of settlement so the buyer can ensure the property’s condition has not changed significantly since they decided to buy, that all agreed upon repairs have been finished, and all the seller’s belongings that are not staying with the home are gone.  You may want to bring a copy of your contract with you so you’re not relying solely on memory to guide you. 

You may be tempted once inside the home to visualize how you will be decorating or arranging furniture, but it is important to stay on task.  Especially if the home is vacant, you will want to be meticulous and check every aspect of the property.  Here is a list of what you should check:

1. Turn every light switch/fixture on and off
2. Run all appliances and major systems (i.e. air conditioner and furnace) to make sure they’re working properly.
3. Open and close all windows and check garage door openers
4. Flush toilets and run water on all spigots to make sure nothing is leaking.
5. Inspect the walls, floors, and ceilings for any damage that might have occurred when the seller moved out or that may have been hidden by furniture.
6. Make sure to inspect the attic, basements, and closets for any hidden problem spots or discarded items.
7. Do a thorough search outside the home to make sure all the seller’s belongings and debris have been removed. 

If possible, have the seller present during the walk through so if you have any questions, the seller will be there to answer.  Also, you will want your agent to be there as well so you have a witness in case you find something wrong—you will want to be able to confirm the issue was there before you arrived. 

Please contact Coldwell Banker Select Professionals if your looking for personal service and have questions regarding buying a home in Lancaster PA, York PA, Harrisburg PA, Lebanon PA, Hershey PA and Cumberland County.  Be sure to connect with one of our agents at www.cbselectpros.com.  We have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.  Get started on your search today!

In our current economic climate, we are constantly looking for ways to save energy and lower the cost of our monthly electric bill.  There are lots of small, simple steps you and your family can take in order to save money and improve the environment.  Coldwell Banker Select Professionals has compiled the follow list of suggestions to make your home and habits more energy efficient.

1. Make sure your dishwasher and washing machine are completely full before you run them.  Also, consider line drying your clothing and air drying your dishes.  Remember, it is not more economical to hand wash dishes—the dish washer will use less water.
2. Install a programmable thermostat so you can reduce your energy consumption when no one is home—there is no need to overly heat or cool a house while you’re at work.  In addition, pull the drapes at night and when you’re not home to prevent heat escape.
3. Start using compact fluorescent bulbs as opposed to incandescent and plug all your appliances into a power strip.  This allows you to turn off the strip when the appliance is not in use.  Surprisingly, appliances plugged into an outlet will continue to use power even after they’re turned off.
4. Clean the filters in your air conditioner and furnace during months of heavy use because dirty filters cause the units to work longer and harder than necessary. Also, consider insulating your hot water heater to make it more efficient.
5. Fill up your refrigerator—all the cold food helps prevent the fridge from loosing coolness when you open it.  Also, use your microwave while cooking as often as possible—it is likely the most energy efficient cooking appliance in your home!

Hopefully the above tips will allow you to save on your future electric bills.  Please contact Coldwell Banker Select Professionals if you’re looking for personal service and have questions regarding listing your home in Lancaster PA, York PA, Harrisburg PA, Lebanon PA, Hershey PA and Cumberland County.  Be sure to connect with one of our agents at www.cbselectpros.com.  We have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.

If you’re considering selling your home, you probably know that making it appear as welcoming and comfortable as possible will be most appealing to buyers.  Especially if you are selling your home in a buyers market, you will want the positive qualities of your home to stand out among other listings.  Coldwell Banker Select Professionals has created the following guide to help you make the most out of the interior of your home.

When staging, you want to remember that in order to sell as quickly as possible and for the most amount of money, you must look at your home through a critical eye.  Is there any peeling wall paper, cluttered closets, unorganized living room and kitchen? Now is the time to get your home in top shape!  Remember, staging your home for maximum effect will always be worth more than the time you invested in it.  You will increase the likelihood of a sale, reduce the time your home sits on the market, and it will help to justify your asking price in the eyes of buyers.

Kitchens and bathrooms are the most crucial areas of your home and where a sale is made or broken.  You need to clean and organize these rooms extremely thoroughly and ensure all appliances, faucets, and cupboards are working properly.  Make sure counters and sinks are spotless and completely free of dishes or any kind of clutter.  If your budget won’t allow for large upgrades—such as cabinets or appliances—consider replacing fixtures and repainting outdated wood surfaces.  Proper lighting, fresh flowers and fluffy towels in a bathroom will do wonders.

The living room and bedrooms of your home also need to be clean and free of clutter, but most importantly they need to appear comfortable and spacious.  In your living room, arrange the furniture in a way to make the room flow; this may mean you have to remove some furniture to make it less crowded.  If your furniture is old or outdated, consider purchasing some slip covers to enhance the overall look.  Bedrooms should appear luxurious and roomy.  You can accomplish this by using earth-tones, investing in some new, fluffy bedding, and limiting the amount of furniture.  Remember to put away the family pictures and the most personal touches to your décor—they inhibit buyers from envisioning themselves in your home. 

When potential buyers visit, they will investigate every inch, including the closets.  Now is the perfect time to start packing up some of your out-of-season clothes so your closets appear more organized and roomy.  People want lots of storage, so if the closets of your home are overflowing, this will leave the unfavorable impression that your home lacks storage. 

Finally, if you have pets, you must remove them for each showing and do your best to eliminate any pet odors or hair from your home.  Please contact Coldwell Banker Select Professionals if you’re looking for personal service and have questions regarding listing your home in Lancaster PA, York PA, Harrisburg PA, Lebanon PA, Hershey PA and Cumberland County.  Be sure to connect with one of our agents at www.cbselectpros.com.  We have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.

If you’re considering selling your home, you probably know that making a positive first impression among potential buyers is a necessity.  Especially if you are selling your home in a buyers market, you will want the positive qualities of your home to stand out among other listings.  Coldwell Banker Select Professionals has created the following guide to help you make the most out of your home’s curb appeal.

When buyers arrive for a showing, you do not want to disappoint them before they even get to the front door.  Make sure the outside is as clean and tidy as possible.  In order to determine what needs to be done, go out to the front of your home from the street and take note of what stands out the most. It might be worthwhile to have an observant friend do the same so you can compare notes. 

Some of the obvious care issues that should always be attended to are peeling, chipped, or faded paint.  If the shutters, railings, trim, or doorway could use some freshening, now is the time to do it.  Not only do you want the paint to be fresh and clean, but if your home has siding, make sure it is clean as well.  If it has green stains on it, make sure you give it a good cleaning with a power washer. 

Next, you will want to make sure your lawn, flower beds, and shrubbery are as manicured as possible.  A fresh mowed yard with weed-free, nicely edged flower beds is an inexpensive and effective way to impress buyers.  You could add an extra pop of color by planting some blooming flowers if the time of year allows.

The final and perhaps most important aspect of your home’s curb appeal, is the entryway.  People will linger in this area before entering the home, so it sets the mood for their first step inside.  Ensure the entry is bright and clean—replace dead light bulbs, clean the windows, door, and railings, and clear away any spider webs. Replace the mat in front of the door if it is dirty and worn out, and consider putting some colorful potted plants on the front stoop and an attractive wreath on the door.

Hopefully the above will give you a good starting point for how to amplify your home’s exterior appeal.  Please contact Coldwell Banker Select Professionals if you’re looking for personal service and have questions regarding listing your home in Lancaster PA, York PA, Harrisburg PA, Lebanon PA, Hershey PA and Cumberland County.  Be sure to connect with one of our agents at www.cbselectpros.com.  We have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.