Deborah Laemmerhirt  203-994-4297  HomesInConnecticutForSale.com

Mortgage applications get denied… it happens every day. If it happens to you, you can give up the dream of home ownership, or take a proactive approach and fix whatever problems caused the rejection.

When lenders turn down a loan application, they are required to tell you why. That requirement is intended, in part, to keep lenders from making loan decisions based on discriminatory factors such as race or gender. But it also provides applicants with the information they need to strengthen their overall financial situations.

Give Your Loan Application the Best Chance for Approval

• Employment stability is a big part of the picture when you are asking someone to trust you with a decades-long year mortgage. If you’ve been at your current job for less than two years but have been in the same industry for a longer period, be sure you note that in your application.
• Before you apply for a loan, get a copy of your credit report (you may want to get copies from each of the three reporting bureaus, since they may contain different information). Check it for inaccuracies and outdated information. It can take 30 days or more to correct errors, so start early.
• If extraordinary circumstances like a job lay-off or medical emergency have created temporary bill-paying problems in the past, explain this to the lender.
• Provide documentation that the lender asks for as soon as possible. If you’re too busy to get the paperwork together and answer whatever questions the lender has, it may be a good idea to wait until you can do what it takes to push the application through. Lenders have three days from the day you file your application to give you a Good Faith Estimate of the fees that will be due at closing. If you fill out an application and then don’t give the lender the necessary information right away, he or she may have no choice but to close the application process.

First, you should know how the basic process works. When you apply for a mortgage, here’s what to expect:

• You will receive an approval or rejection within 30 days of submitting a completed application.
• If your application is denied, your lender must tell you, in writing, specifically why you were not approved (or give you have 60 days to ask the reasons for the rejection). It’s not enough for lenders to say “you didn’t meet our standards.” They must provide details such as “not enough time on the job,” or “your income is too low.” Once you know where your financial weaknesses are, you can focus on fixing the problems.
• Your mortgage may have been approved, but on less favorable terms than you originally applied for. In that case, lenders must tell you why you didn’t qualify for better terms (if you ask), but only if you turn down the counter offer, according to the Federal Trade Commission.
• If your mortgage was rejected because of something in your credit report, the lender is required to tell you how to contact the credit bureau that issued the report. If you ask within 60 days, the bureau will provide you with a free copy of your report. Plus, under the Fair Credit Reporting Act, all consumers are entitled to receive one free report each year, which you can get order visiting the annualcreditreport.com Web site. If there is inaccurate information in your credit report, the credit bureau must investigate if you file a dispute. The company that provided the inaccurate information must also reinvestigate your claim and report the findings. If, after the investigation the inaccurate information remains and you still dispute it, include a summary of your position in your credit file.
• A poor appraisal may all or part of the reason for your mortgage denial. Ask the lender for a copy and check it for inaccuracies such as age, location, and dimensions of the home. Also verify that there was no illegal component to the appraiser’s decision, such as the racial makeup of the neighborhood. The appraiser works directly or indirectly for your lender, so if there are factual errors, or illegal information in the appraisal, point these things out to your lender and ask him or her to contact the appraiser.

Depending on the reason for the mortgage denial, it may just be a matter of time, or you may need to take action. If you’ve made a habit of job hopping, settle down and stick with one employer long enough to develop a stable history. If your credit history is shaky, stop opening new accounts and make a concerted effort to pay down the ones you have. Keep balances on all accounts low, since part of your credit score depends on how much of your available credit you are using. Pay bills on time. If you have old credit accounts with zero balances, don’t close them or you could negatively impact your credit score. Keep them open and cut up the credit cards.

Barring unforeseen circumstances such as a medical emergency or a job lay off, anyone can become creditworthy with time and diligence.

Deborah Laemmerhirt  203-994-4297  HomesInCommecticutForSale.com

We all know we should buy low and sell high, but determining when that occurs is difficult. Thus, consider using a strategy like dollar cost averaging to help with those decisions.

Dollar cost averaging involves investing a set amount of money in the same investment on a periodic basis. For instance, instead of investing a lump sum in one stock immediately, you might invest $2,000 in that stock at the beginning of every month.

Utilizing this strategy can provide several benefits:

• Dollar cost averaging requires the discipline to invest consistently, regardless of market fluctuations. Thus, it reinforces the habit of regularly setting aside money for investing.
• For many investors, one of the more difficult aspects of implementing an investment strategy is deciding when to invest. Fear of investing at a market high can keep investors waiting on the sidelines for some indication of when they should invest. With a dollar cost averaging program, you just follow the plan and invest on a periodic basis, without trying to time the market.
• Since you are investing a fixed amount of money, you purchase more shares when prices are lower and fewer shares when prices are higher. Thus, your average cost per share is typically lower than the average market price per share over the same time period.
• A dollar cost averaging program is by definition a long-term program. Thus, if followed consistently, it helps encourage long-term investing.
• Since you are spreading your investment over a period of time, it keeps you from investing all your money at a market high.

Dollar cost averaging, however, does not ensure a profit or protect against loss in declining markets. Before starting a dollar cost averaging program, you should consider your financial ability to continue purchases through periods of low price levels.

You may already be using a dollar cost averaging program without realizing it ? participating in a 401(k) plan, reinvesting dividends in additional shares, or automatically transferring funds from your bank account to an investment account are all forms of dollar cost averaging.

Deborah Laemmerhirt  203-994-4297  HomesInConnecticutForSale.com

Real investors don’t panic. Well, sometimes they do. Market movements are often sensationalized and price drops can be jangling on anybody’s nerves. You’ve seen the headlines before and you’ll see them again: “Panic Selling Hits Wall Street.”

When your stomach churns as your portfolio’s value drops, remember your commitment to long-term investment goals. Easier said then done? Not really. Try these six remedies:

• Remedy 1: Review your investments. Why did you buy the stock or fund in the first place? Check to see if the fundamentals have changed. Do they prompt a wise decision to sell or is the overwhelming evidence to keep holding?
• Remedy 2: Look to the future. If the drop was sparked by some disappointing news, determine if the effects will endure beyond the current quarter. Try to determine for how long.
• Remedy 3: Weigh the upside against the downside. Is the stock likely to regain or even surpass its previous levels? Will you regret selling it or will your losses expand if you hold onto it?
• Remedy 4: Calculate the fees and taxes if you sell. Taxes will be higher, of course, if you’ve held the stock less than a year and are subject to short-term capital gains taxes. Or suppose you own a stock that’s currently down and you want to unload it so you can use the tax loss to offset capital gains from more successful investments. Watch out for the “wash sale” rules if you think a stock will recover enough to buy it back within 30 days of the sale. You won’t be able to deduct the loss in the year of the trade. Instead, it has to be added to your tax basis and deducted when you sell the new shares.
• Remedy 5: Consider what you’ll do with the money. You may have to do as much research to find a promising replacement investment as you did to find the original stock or fund. You may not be able to buy back in at, or below, your sell price and a replacement may have to make even more gains to cover your losses.
• Remedy 6: Look for reassurance. Call your financial adviser for moral support. Or get some perspective by checking financial publications or the Internet. The point is that if you sell a stock during a temporary downturn, you could miss the rebound and have to buy it back at a higher price. Or you might not be able to get back in at all if you’re in a mutual fund that closes after you sell.

Tip: If you do decide to bail out, consider selling just part of your holding. That will keep your options open.

Deborah Laemmerhirt  203-994-4297  HomesInConnecticutForSale.com

The best way to assess your local market and home value is by staying in touch with your real estate professional.In fact now is a good time to ask your professional to clue you in on your Home’s value. Just click on the left “email”.

The bigger picture has the housing market in full recovery mode.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dipped 1.2 percent to a seasonally adjusted annual rate of 5.08 million. This rate is 15.2 percent higher than the 4.41 million-unit level in June 2012.( Source: National Associations of Realtors

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.07 percent in June from 3.54 percent in May, and is the highest since October 2011 when it was also 4.07 percent.

The national median existing-home price for all housing types was $214,200 in June, up 13.5 percent from June 2012. This marks 16 consecutive months of year-over-year price increases.

Eight percent of June sales were foreclosures, and 7 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in June, while short sales were discounted 13 percent.

The median time on market for all homes was 37 days in June, down from 41 days in May, and is 47 percent faster than the 70 days on market in June 2012. Short sales were on the market for a median of 68 days, while foreclosures typically sold in 39 days and non-distressed homes took 35 days. Forty-seven percent of all homes sold in June were on the market for less than a month.

All-cash sales made up 31 percent of transactions in June, down from 33 percent in May; they were 29 percent in June 2012. Individual investors, who account for many cash sales, purchased 17 percent of homes in June, down from 18 percent in May and 19 percent in June 2012.

Deborah Laemmerhirt  203-994-4297  homesinconnecticutforsale.com

Quiz yourself and see which architectural styles you know!

A-Frame This contemporary style is characterized by its easy-to-recognize pointed triangle roof which resembles an “A”. This all-seasons house is designed to capture sunlight with large windowed fronts and backs that overlooks lake views. The large decks accommodate vacationing family and friends. It was most popular during the 1960s and 70s in resort areas, such as mountain retreats and ski getaways. The interior is open with a fireplace, bedroom, and loft nestled into the attic. This steep sloping roof is specially designed for snowy climates and the house is generally designed to fit in with its natural surroundings using existing materials and tan / brown hues.

Bungalow Identify this style by its low horizontal roof, earthly colors, front porch, and wood siding. It’s a small, simple space with a fireplace focal point. The living room opens to the dining room with built-in wooden furniture such as bookcases, window seats, buffets, and sideboards. The interior includes plaster walls and is characterized by wood floors and chair rails, stained glass windows, and artisan lighting fixtures. This style was popular in the 1920’s and developed from the Arts and Crafts era influence. Closely related is the California Bungalow which borrows the colonial Spanish motif.

Cape Cod Look for a steep roof, gray wood shingles or clapboarding, no front porch, and a white picket fence. Other identifying features include a brightly colored front door with intricate carvings and an ornament; white trim and window shutters; airy clean-look white paint on doors, crown molding, and cabinets which sharply contrast with the wood floors. Walls are painted to reflect the Cape Cod colorful seaside, echoing the blue ocean, tan sand, and glowing orange/reddish sunsets. Based on the colonial lifestyle of the early pilgrim settlers, the simple functional design originates from 17th century New England. Exteriors are characterized by broad low frame steep sloping roofs, symmetrical pitched style with a front door in the middle, and windows with shutters on each side. Native woods such as cedar shingles were used frequently, along with oak/pine hardwood flooring. Interiors may have a hallway, parlor, upstairs left and simple open floor plan. Think of: Martha’s vineyard style.

Circular Octagon, silo, and round houses are examples of circular architectural style. They are eco-friendly and highly energy efficient. Circular styles are known for withstanding tornados and hurricanes because their design offers protection against the harsh elements. They are ideally suited for country living where views abound, with large windows boasting panoramic views. Home builders can buy a “kit” and build it on site from Deltec.com, the most popular DIY round house. Related styles are the geodesic domes and cone shapes.

Colonial Exteriors are narrow and tall, boxy rectangular structures, with a natural wood-look. Other identifying features are muted grays & earth tone colors, vertical tall doors and windows, and multi-panel windows. This simple and sensible style from the early American settlers and pioneers has narrow, non-decorative trim which reflects the conservative craftsman style. From the basic colonial style developed French Colonial, Spanish Colonial, Dutch Colonial and Georgian.

Contemporary This modern, minimalist style is known for its striking artistic asymmetrical roof lines. Featuring boxy picture windows, the “industrial” look outside, and large flexible living areas inside. This eye-catching design offers a break from the cookie cutter tract home because each home is uniquely custom designed. Closely related to the Art Deco and Mid-Century Modern style. Sometimes referred to as a “California Modern”.

Craftsman Identify this style by looking for rectangular and triangular shapes which characterize this no-nonsense design, built using natural local woods. These homes highlight simple hand-crafted wood construction. The front porch may have a separate, smaller roof and columns which echo the house. Nature-inspired exteriors reflect their surroundings with moss green, rusty red, and brown/tan colors. The front door will have glass near the top, and double-hung multi-tiered windows adorn the exterior. Pride of craftsmanship shines through, hence the name. Popular during the arts and crafts movement.

Danish Provincial This style is identified by the half-timber construction technique called bindingsv?rk, which uses brick and timber, or stucco and timber. The timber is arranged in an angle design. The thatched-roof look is common, as Scandinavian settlers brought their Danish designs straight from Denmark. Look around, the property may have an adjacent Danish windmill. And look up! You may see a stork weather vane sitting above the entrance, which the Danish believe will bring good luck to their family.

Federal Look for a half-circle fanlight window over the door, symmetrical 2-story homes with tall doors and long, tall windows in a row. Greek columns welcome visitors to the small, formal front stoop (no porch) with double-hung sash windows, Palladian windows, and flat or low-pitched roofs. Interiors often boast circular, hexagon, and oval rooms with high ceilings. This formal, upscale style was popular from 1780 to 1850. Think: the White House and the Oval Room.

Foursquare Popular in the Midwest, these homes are a staple style in Wisconsin, Minnesota, Indiana, Ohio, Michigan, and Illinois. Named “Foursquare” because the floor plan is 4 rooms per floor, boasting a square boxy shape with a wide front porch, these homes are often 2 stories with an attic dormer and a basement. The exterior has wood siding or shingles and is recognized by its square columns. This humble and basic floorplan is also known as “Prairie Box” and “American Foursquare”.

French Country This style reflects the French rural lifestyle, with designs ranging from modest farm houses to extravagant chateaus. These homes have a cottagey-feel and exude charm and character. They can be identified by the stone exterior, curved arches, wood-beam ceilings, and stone floors, and a thatched-roof look hipped roof. Colors are soft and blend in with the countryside. Think: Thomas Kinkade “light” paintings.

Georgian Classic symmetry reigns supreme in this style inspired by the Renaissance movement. Outside, look for tall slender Greek-style columns adorning the front entrance, a hipped roof, and double-hung windows with shutters. Inside, key features are its graceful ornate detailed trim, a fireplace, and transom windows. Conservative colors are white, ivory, sand, light blue, or light gray. This is one of the earliest styles of architecture for homes built in New England between 1700 to1850. It bears a strong resemblance to the Federal style.

Italianate This formal European style is based on Italian design, framed by its signature Italian decorative double columns. It often has a square “cubed” tower with a cupola on top, or a campanile (bell tower). It boasts a paneled front door, often a double door, below the “tower” and a round transom window above the front door. Narrow, tall window panes extend from floor to ceiling and highlight the wrap-around porch. Unique characteristics are: tall, low-pitched roof, and crafted detailed brackets. Colors of this 2 or 3 story house with shutters and trim are usually white, green, or pinkish tan.

Log Cabin This style is built with round tree logs, usually unpainted but logs may be enhanced to bring out and protect the natural wood look. This rustic, down-to-earth design is constructed using natural materials. It has a simple design with a pitched roof and a fireplace/chimney, set on a hill or a natural forest surrounding. This style is usually plain and functional and unpretentious; but fancy large variations can be found hidden away near upscale ski slopes. It’s a popular style in mountainous regions of the west, particularly California, Montana, and Colorado, where these homes are used primarily as vacation cabins and snow/ski retreats. Think: lumber jack home.

Deborah Laemmerhirt  203-994-4297  HomesInConnecticutForSale.com

BACK TO SCHOOL TIPS YOU NEVER THOUGHT ABOUT – PARENT’S EDITION.

A Few Things You May Not Have Thought About When Getting Kids Back To College: Insurance and Identity Theft. Having a child away at school has some insurance implications. First, your auto insurance company may have a rate reduction for you because your child is not living at home and is driving the car less frequently.

Next, be sure that your regular homeowners policy will cover the child’s dorm or apartment contents. Lap-top computers are the easiest target for college-based thieves. Your insurance company may add a rider (additional coverage) attachment to your policy for a few dollars. As for health insurance, make sure your student has a copy of the relevant insurance cards and knows about obtaining referrals and approvals (if necessary) before seeking treatment.

If you are insured by a health maintenance organization (HMO), check to see if your student will be outside the HMO service area while away at school. If this occurs, the student will probably have coverage for emergency care, but might have to travel to a physician or hospital within the HMO service area for routine care. If your insurer is part of a preferred provider organization (PPO), your insurer may pay benefits at out-of-network levels if you are outside your network. A Perfect Storm!

According to identitytheft.com, college students comprise almost 35% of all victims. Therefore, be sure to add a paper shredder to the back-to-school shopping list! Students are easy marks for identity theft because: Students move a lot, so their mail does not get forwarded all the time. That annoying pile of pre-approved credit offers that we all receive way too often all end-up in the same trash can in the school’s mailroom; Their school loan forms get misplaced or just thrown out rather than shredded. These forms have all of the info ID theft thieves need; They have clean credit which is what thieves seek access to; It may be wise to have the student pull a credit report twice per year to make sure there are no open accounts existing that are not desired. Their first one is free. www.annualcreditreport.com