Vera L. Koon / Realtor®  - Direct: (321)302.9588 | Vera_Koon@yahoo.com
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Hidden Treasure...SpaceCoast Living | Today's Question: What is A Pre-Approval?
 
A pre-approval is a process in which a lender commits to lending money to someone on the basis of information provided by the borrower and verified by the lender. Pre-approval is commonly used during the home buying process by buyers who want to show sellers that their offers are serious and they can afford a house. By getting pre-approved, borrowers can also shop more effectively, because they know exactly how much they can afford and they can prove this to sellers.

The concepts of pre-approval and pre-qualification are often confused. Pre-qualification is a very quick process in which a borrower provides estimates of income and the amount of money available for a down payment, and a lender uses this information to provide a rough idea of how much it might be willing to offer. In pre-approval, a specific lender reviews and verifies information, performs a credit check and extends an offer of credit to a borrower.

Pre-approval is subject to some caveats. If a borrower's financial situation changes between the time of pre-approval and the time of a purchase, the amount a lender is willing to offer can change. Typically lenders issue pre-approvals with expirations to avoid situations in which people use an old pre-approval offer with inaccurate or dated information to make an offer on a home they cannot afford. Likewise, while the loan is for a set amount of money, a lender may decline to extend a loan on a particular home for reasons ranging from problems with the title to questions about the condition of the home.

People who are shopping for homes are often advised to get a pre-qualification letter and to use this when approaching real estate agents to discuss their options. This letter can be used to narrow down the selection to houses which the buyer can reasonably and comfortably afford. Once the buyer is getting ready to make an offer, the buyer can work with a specific lender or with a mortgage broker to get a pre-approval letter which will be packaged with the offer the buyer makes for a home.

Pre-approval is not required for the home buying process, but it can be very helpful. There may also be certain situations in which sellers demand a pre-approval letter as part of the offer process. Sellers may do this to avoid fishing, in which people make offers on homes they don't have a firm intent of buying, and to avoid wasting time; sellers do not want to negotiate with a buyer who doesn't have a realistic expectation of paying the asking price. for example.

Buying or Selling, We Can Help......Vera & Andy
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Is Now a Good Time to Buy a Home?
Q: Given what's happening in the financial markets, is now a good time to buy a home?
A: For some people,yes. If you…
  • have access to credit
  • have fat cash reserves
  • aren't already over-exposed to real estate
  • have a secure job or income stream
  • expect to hold the property for at least two years
…then now is an excellent time to buy.
Everyone else should take a breather.
The reason: It's still too early to tell whether the dire predictions many government officials and economists are making about the potential collapse of our economy without a bailout are crying wolf--or if the wolf is really at our door.
For those who are cash-rich, either because they are too wealthy to be badly hurt by any economic swing, or because they were presciently pessimistic and liquidated their portfolios before the meltdown, the coming months—and perhaps years-- of uncertainly will provide an unprecedented real estate buying opportunity, of both trophy estates and income-producing investment properties. "The smart people know that the world is not coming to an end," says Lanse Robb, an agent with LandVest, a brokerage on Boston's toney North Shore. "They're making their moves."
But the average buyer probably doesn't have the cash to gamble on real estate--and shouldn't, at least for now. Income growth has stalled for the vast majority of Americans for the past eight years, and home equity has been vanishing rapidly since the peak of the boom in 2005. (Last month, median existing home prices nationwide fell 6%, to $221,900.) The roiling stock market is hardly a comfort either, as everyone who has peeked at a 401k statement over the past week knows.
More critically, jobs are evaporating at an alarming pace. According to government statistics, the unemployment rate rose to a five-year high of 6.1% in August. There have been eight consecutive months of job losses, with a year-to-date total of 685,000. And layoffs aren't likely to end soon, since factory orders fell 4.5% last month—twice the rate that analysts expected.
Without healthy job growth, it's likely that the supply of unsold homes will grow. Currently it's at 11 months, more than double the median supply of two years ago. Until that inventory is burned off, home prices will continue to stagnate or fall in most markets. A government bailout that unfreezes credit markets and staunches the flood of foreclosures that are also depressing prices should help, but the fix will take a long time.
That doesn't mean that the housing market is doomed; ultimately, it will get better. There's even an upside: certain markets, particularly on both coasts, were driven up by speculators and became wildly overpriced during the boom. Falling prices means that housing in those markets will eventually become more affordable for average families. Credit Suisse estimates that, nationally, the ratio of median home prices to household incomes will return to their historical average of 2.86 in another 18 months.
In the meantime, if you're feeling insecure about your job or low on cash, hang tight and save your money. And if you must move, rent.<----Click for Homes For Rent
Write to June Fletcher at june.fletcher@wsj.com
 
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Ten Helpful Tips for the Slow Cooker
 
1. Less tender cuts of meat and poultry — such as pork and lamb shoulder, chuck roast, beef brisket, and poultry legs — are best suited for slow cooking. Skim fat from cooking liquid when done.
 
2. Fish and other seafood are not a good fit unless they are added in the last hour of cooking.
 
3. Avoid using ground meat; its texture is compromised by long, slow cooking, resulting in a mealy, sandy quality.
 
4. Slow cooking tends to intensify flavorful spices and seasonings such as chili powder and garlic, so use them conservatively. Dried herbs may lessen in flavor, so adjust seasonings at the end of cooking. If you're using fresh herbs, save some to toss in at the last minute for best flavor.
 
5. For a richer flavor in stews, sprinkle meat and poultry with flour and brown in skillet before slow cooking. Scrape up browned bits in skillet and add to the pot to help thicken sauce and enhance flavor.
 
6. To make cleanup easier, use slow-cooker bowl liners.
 
7. For even cooking, fill slow-cooker bowl at least halfway — but never to the brim. For soups and stews, leave about 2 inches of space between food and lid.
 
8. Resist stirring the pot because meat and vegetables may break up.
 
9. If your recipe produces more liquid than you want, remove solids with a slotted spoon to a serving dish and keep warm. Turn slow-cooker temperature to high; cook remaining liquid, uncovered, to reduce to desired thickness.
 
10. Most recipes can be prepped the night before — all you have to do in the morning is toss in ingredients and flip the switch on the slow cooker! Premeasure ingredients, precut vegetables, trim meats, and mix liquids and seasonings. Refrigerate components separately in bowls or self-sealing plastic bags.
 
 
www.Portfolio.com : Business Intelligence
www.lhj.com  : Ladies Home Journal
 
10 Ways to Cut Energy Bills This Fall from Vera!  
 
Staying warm doesn't have to cost a fortune. Here are some ideas from the U.S. Department of Energy for conserving heat and saving money.
By K.Quigley | October 2008
When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy on chilly autumn nights doesn't have to break the bank.
 
The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn't have to work harder than it should.
 
The goal: Conserve energy and keep more of your hard-earned dollars in your pocket.
 
Share these ideas with friends . After all, who doesn't need to save a little money these days?
 
1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.
 
2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.
 
3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.
 
4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.
 
5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year).  Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer.  
 
6. Close fireplace dampers when not in use.  When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.
 
7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.
 
8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.
 
9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy.  Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.
 
10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov.
 
These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information.
 
Not sure where to begin? Try the Department of Energy's online energy audit tool at www.hes.lbl.gov. In the long run, a whole-house energy audit is a fool proof way to make a plan to address wasted energy and make a home operate efficiently for years to come. Visit www.natresnet.org to find a qualified auditor in your neck of the woods.
 
If you or someone you know is considering Selling, Buying, or renting a home....I CAN HELP!
My direct contact is 321-302-9588. It would be my pleasure to assist you!....Vera (Referrals are always Welcomed!)
 
 
 
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