This 12 issue newsletter focuses on ways to get the most out of your home, by giving current and timeless advice on refinancing, buying your first home and how to avoid common mistakes made by homeowners, wannabe homeowners and renters. So whether you are buying, refinancing or thinking about either, every issue covers a topic that will help you no matter what stage of homeownership you are in.

ISSUE 5

Home Fixer Uppers A Great Deal Or Not ?
Before You Buy That Fixer-Upper: What Does
Fixer-Upper Really Mean?

We don't have any strict criteria defining exactly what "fixer-upper" means. It could mean a ramshackle place with sagging floors, a leaky ceiling and a serious draft problem.

And yet, fixer-uppers represent an excellent way for many home buyers to move up into larger accommodations. Provided they're willing to assume the cost and the effort it takes to perform the various repairs these homes require. So by no means should you dismiss fixer-uppers during home search. But this is a clearly a situation during which you should take your time and thoroughly investigate all of the repairs a home will need. And most important, how much they'll cost, before you sign on the dotted line.

A "great deal" can tempt you to turn a blind eye on the home's problems. The steal of the century is something to which we all aspire. The seller may dangle proverbial carrots in front of you, such as a m0rtgage assumption, in an effort to discourage an appraisal. This is clearly an occasion during which you can't let your emotions reign supreme. Think about the prospect of getting yourself into a home for which you paid too much, and for which you still have to invest thousands of dollars in repair work. A home that seems like a great bargain now can turn into a real "money pit" if you don't do your home work before the sale.

Do You Have A Working Knowledge Or The Expertise
To Know Which Improvements Are Likely To Add
Value?

Most people know how to paint a bedroom or install a new light fixture, but those routine chores are a far cry from adding a second bathroom or remodeling an out-dated kitchen. Tackling these improvements without the necessary experience and expertise can lead to costly mistakes. As a general rule of thumb, improvements that are invisible to home buyers or merely bring the home in line with expected minimum standards don't add much resale value. If you make the wrong improvements, you won't see much, if any, return on your investment. Another potential pitfall is over-improving the property compared to other homes in the neighborhood. And if the home really only needs easy, inexpensive or purely cosmetic repairs, your efforts probably won't add enough
value to be profitable.

The dream of purchasing a fixer-upper, donning a tool belt and overalls and transforming a home to its original glory is firmly rooted in the American dream of homeownership. But that dream can lose its luster quickly when costs mount and reality sets in.

Can You Make Money Buying "Fixer-Uppers"?

Many people are enticed by the prospect of making money by repeatedly buying rundown homes, moving into them, fixing them up and reselling them for a profit. This may or may not be a good strategy. Here are some question to consider:

Moving is time consuming, stressful and costly even when it's anticipated and welcomed.

Will your family cooperate with repeated packing and unpacking every few years?

Will the higher resale value of the home exceed your purchase price, plus your investment and your transaction costs? If so, will the profit be adequate compensation for your time and effort?

In The Event That Dream Fixer-Upper Passes Muster: Take your time aligning yourself with a reputable mortgage broker, realtor and a home inspector, and even taking an educational course or two can help you make the right decisions.

Only you know best, there are no hard and fast rules here, just leave the rose-colored glasses and your emotions at home when you begin shopping for a "fixer-upper" also remember these words "AS IS" you own it.

Using a great Mortgage product we are now able to finance the purchase price, and all repairs to the home including windows, painting, carpeting, remodeling, major and minor structural repairs, appliance replacement including heating and a/c systems etc.  This program is available to owner occupants only.  

We also have a special re-hab loan for investors.