Tag Archives: Katonah Luxury Real Estate

Time to hire a contractor | Katonah Real Estate

Know when it’s time to HIY

Even if you’re an avid DIYer, you’ll eventually need a job done that’s just too big or complex to tackle by yourself. That’s when you hire a contractor. But how do you know you’re getting the best deal? Well, first, make sure you follow all the time-honored advice like asking friends and family to recommend a contractor, making sure you hire someone you’re comfortable with, and verifying that the contractor has been in business for a while and has liability and worker’s compensation insurance. Interview at least three contractors so you can compare the bids. When you meet with them to discuss the job, you should ask these questions to be confident that you’re getting the most for your remodeling dollar.

Exterior painting projects

Painting the outside of a house is a big and often expensive job. The last thing you want is to face the project again in a few years when poorly applied paint starts to flake and peel. You can greatly improve the odds of getting a job that lasts 8 to 10 years by asking these questions to painting contractors dublin with more than 10 years in the industry, they can rest assured that your job, no matter how big or small, will be carried out to your exact specifications.

How do you plan to prepare the surface for painting?

You’ve heard it a million times, but proper preparation is the key to a long-lasting paint job. You can apply the best paint in the world but it won’t last if the surface is dirty or loose. Make sure your contractor is planning to wash the surface to remove dust, dirt and other contaminants, either by scrubbing or with a pressure washer. The next step should be scraping all loose paint followed by sanding and, finally, another wash or wipe-down to remove sanding dust.

Will you prime before caulking and painting?

Primers are absolutely necessary over bare wood and a good idea over old paint too. If there are layers of old paint with exposed edges, ask your painting contractor to use a binding primer on these areas. Binding primers form a flexible seal to help prevent old layers of paint from peeling off.

What areas are you planning to caulk?

Most paint failures start at edges where water can seep under the paint and loosen it. A thorough job of caulking solves this problem and extends the life of the paint job. Your painter should caulk cracks where the siding meets windows and doors, and any other cracks where water could enter. However, the painters we talked to advised against caulking the cracks under lap siding.

What kind of paint do you plan to use?

Good painters will use good paint, but they may not plan to use the best paint. Ask the painting contractor to include 100 percent acrylic exterior paint in the estimate. Even if you’re charged a little extra, you’ll save money in the long run.

Roofing projects

When it’s time to reroof, it pays to make sure the materials and workmanship are first rate. A poorly installed roof can cost you a fortune if it leaks or blows off in a storm. When you get bids from contractors, be sure they’re licensed, bonded and insured and can provide references from past customers. CDSSR – Roofers in Huntington Station Long Island NY provide roofing services to restore your roof to new and better protect your attic and ceiling.

Photo: romakoma/Shutterstock

Do you plan to tear off the old shingles and pull the nails?

When you’re comparing bids, ask if the roofing contractor recommends tearing off the old shingles. Removing the old roofing materials allows the roofing contractor to inspect the roof sheathing and repair rot or other damage, exposes problems with flashings, and provides a smooth surface that’s easier to waterproof and roof over.

How will you charge for extra work, like replacing rotted wood?

Regardless of how careful the contractor is to include all the necessary work in the bid, there are bound to be surprises. For example, it’s hard to know the condition of the roof sheathing until the shingles are removed, and at that point in the job you don’t have much bargaining power. That’s why it’s important to include in the contract an hourly rate for extra work, or a square-foot price for replacing the sheathing. If possible, plan to stay home on the day the roofers tear off the shingles so you can work with the contractor to establish an agreeable price for repairs.

Photo: L Barnwell/Shutterstock

Will you replace damaged or rusted flashing?

One of the most common roof leak sites is at the intersection of the roof and a wall, like the sides of a dormer. These areas are waterproofed with a series of overlapping pieces of sheet metal, approximately 8 in. square, that are bent to lap onto the wall. These step flashings are then covered with shingles on the roof side, and siding or another piece of flashing, called counterflashing, on the wall side. It’s always best to replace the step flashing. But in some cases, it’s difficult to remove step flashing from under the siding. Make sure your roofer is planning to inspect the step flashing and explain your options for replacing or repairing it.

Will you replace the roof vents and valley flashing?

It’s bad economy to try to save money by reusing roof vents, plumbing vent flashing or valley metal. Replacing all of these with new materials only adds a few hundred dollars to the cost of a typical roof, but ensures a leakproof job. For the best appearance, also ask the roofer to use metal that’s prefinished to match the color of the shingles.

Asphalt driveway projects

Fly-by-night contractors are common in the asphalt industry, but there are ways to avoid them: First, don’t buy from door-knockers —reputable contractors seldom resort to this technique to get jobs. Then ask your contractor the following questions to get a long-lasting driveway and the most bang from your buck.

Photo: Matthijs Wetterauw/Shutterstock

How are you planning to prepare the base for the asphalt?

According to experts in driveway paving services, a well-compacted, stable base is essential for a long-lasting asphalt job. Ideally, soil containing organic material would be removed, as well as enough clay or other expansive soil, to allow the installation of a 6- to 8-in. base of compacted gravel. But this level of preparation may not be common in your area, especially if you don’t have severe freeze/thaw cycles. When you compare bids, pay close attention to how your contractor proposes to prepare the base, and choose the contractor who seems the most likely to do a job that will last.

What equipment will you use to compact the driveway?

Asphalt must be compacted with heavy equipment soon after it’s spread, while it’s still hot. Choose a contractor like Jackson Asphalt who has 1- to 3-ton rollers for compacting the asphalt.

How thick will the asphalt be once it's compacted?

How thick will the asphalt be once it’s compacted?

In most areas of the country, a 2- to 3-in. layer of asphalt is sufficient if it’s installed over a stable base.

Will you slope the driveway to avoid standing water?

Water pooling on or at the edges of an asphalt driveway can cause damage and shorten the life of the asphalt. Make sure your contractor plans to slope the driveway and surrounding area for good drainage.

How do you plan to finish the edges of the asphalt?

A top-notch asphalt job includes beveling the edges at a 45-degree angle and packing the asphalt with a hand tamper for durability.

Concrete driveway projects

A concrete driveway is a big investment that will last a long time if it’s done right. But choose your contractor carefully. Poorly installed concrete can crack, buckle and heave, leaving you wishing you’d spent a little extra up front for a first-class job.

Will you provide a sketch showing the dimensions of the driveway?

To make sure you know what you’re getting and to prevent any misunderstandings, ask for a sketch of the proposed driveway showing all the dimensions and how it intersects with existing structures like the garage, house or street.

Photo: Imagenet/Shutterstock

How do you plan to prepare the base for the concrete?

The type of soil under your driveway determines how much preparation is needed before the concrete is poured. It’s important to find a contractor who’s familiar with the local soil conditions and can recommend a course of action. Typically the best base for a concrete driveway is a 4- to 6-in. layer of compacted gravel.

How thick will the finished concrete slab be?

While 4-in.-thick slabs are the norm, adding an inch of concrete is a great investment. The extra inch adds only 25 percent to the amount of concrete needed but increases the strength by about 50 percent.

What are the specifications of the concrete you intend to use?

In its most basic form, concrete is a mixture of cement, aggregates (sand and gravel) and water. The proportion of these ingredients helps determine the strength of the concrete. Engineers we spoke to recommend a 4,000-lb. mix (strength) for driveways. Adding fiber mesh to the concrete mix increases resistance to hairline cracks and is a good investment. In cold climates, order air-entrained concrete to help the concrete survive freeze/thaw cycles.

Photo: Alison Hancock/Shutterstock

Do you plan to add rebar to reinforce the concrete?

For ultimate strength, concrete requires an embedded mesh of reinforcing steel. You can see this skeleton of steel being incorporated into every road and bridge project. So it only makes sense to add it to your driveway. Wire mesh doesn’t add much strength. Find a contractor who typically installs a grate of 3/8- or 1/2- in. reinforcing steel and you’ll be assured of the strongest slab money can buy. Typically the overlapping steel rods intersect to form 3- or 4-ft. squares.

How many control joints will you cut into the concrete?

Concrete driveways are going to crack. Control joints provide a weakened line that encourages the cracks to form where you won’t see them. For a 5-in.-thick slab, control joints should be added in a pattern of squares no larger than about 10 ft. The joints should be at least 1-1/4 in. deep to be effective. Some contractors use a tool to cut the joints while the concrete is wet. Others return to cut the joints with a saw after the concrete sets.Will you apply curing compound after you finish the driveway?

Concrete needs to cure for about a week to approach full strength. During this time, evaporation of the water in the concrete has to be slowed to allow proper curing. Misting the slab or covering it with wet burlap or plastic sheeting are two methods of slowing evaporation. But applying a liquid, membrane forming curing compound to just-finished concrete is better because it doesn’t require constant vigilance to succeed.

Gutters and downspouts

‘Seamless aluminum’ gutters are the most common contractor installed gutters. The quality of these installations can vary widely, so hire a contractor who’s been in business for several years and can show you examples of past work. Then ask these questions from guttering Manchester to be certain you’re getting the best-quality job.

Photo: Suti Stock Photo/Shutterstock

How will you slope the gutters so they drain?

It may look nicer to have level gutters, but it’s better if they slope slightly downhill toward the downspouts. Just a little slope, about 1/16 in. per foot, is all that’s needed. Long gutter runs may require downspouts on each end and a gutter that slopes both directions from the center.

How thick is the metal on the gutters you’re planning to install?

There are two common thicknesses of aluminum used for gutters, .027 and .032 in. If you’re getting bids on aluminum gutters, make sure the contractor is planning to install the thicker, .032-gauge gutters. If you are not aware of the installation process and the materials required for it you can contact professionals such as Proven Contracting & Roofing.

What size downspouts are you going to install?

Ask for oversized, 3 x 4-in. downspouts. They don’t cost much more but have the advantages of carrying more water and clogging less.

Does your bid include downspout extensions?

One of the main purposes of gutters is to keep water from accumulating near the foundation. Adding horizontal extensions to the bottom of the downspouts helps move the water farther from the house. Usually the extensions are just another length of downspout material attached to an elbow at the house. But flip up or roll-out versions are available for areas where downspout extensions might interfere with mowing or other activities.

How close together will the gutter hangers be spaced?

The guttering specialists will attach the gutters to your house with screws through the back of the gutter, and then add gutter hangers to support the front edge. Since aluminum gutters will bend if they’re not well supported, it’s important to have plenty of hangers to reinforce the outside edge. Be sure your contractor is planning to install a hanger at least every 3 ft. In climates where snow and ice remain on the roof over the winter, ask for 2-ft. spacing.

Are you going to install new gutter apron?

Water running behind the gutters can stain or otherwise damage the fascia board and soffit. To avoid this problem, the gutter installer should install metal flashing, also called gutter apron. Gutter apron slips under the shingles and over the edge of the gutter to direct the water into the gutter.

Ceramic tile floor projects

Properly installed tile floors should last decades. But poorly installed floors will start to crack or fall apart in a matter of years, if not months. Here are some questions to ask your tile contractor to ensure a long-lasting job.

Photo: Anna Maloverjan/Shutterstock

What material do you plan to install as a base for the tile?

A tile job is only as good as the substrate it’s on. The base has to be stiff and flat. Tile can be adhered directly to sound, crack-free concrete. Ask your contractor to install an isolation membrane if there are cracks in the concrete. Even though they’ll be covered by backer board or a mortar base, wood floors have to be stiff, with at least 3/4 in. of solid wood or plywood over properly spaced floor joists. Ask your contractor to inspect the floor for sponginess and strength and recommend reinforcements if needed. If the floor is flat, sheets of tile backer installed in strict accordance with the manufacturer’s recommendation will be fine. Over uneven wood floors, a traditional mortar or modern self-leveling mortar base is a better option.

Will you use latex mastic or thin-set adhesive to install the tile?

According to experts at the Tile Council of North America, thin-set adhesive is superior to mastic for setting floor tile. Thin-set provides solid support when it sets, and can bridge slight variations in the subfloor. Be sure your contractor is planning to use thin-set to adhere your floor tile.

Do you plan to apply a grout sealer to protect the grout?

Grout sealers help keep grout clean and seal out water. Applying grout sealer is an easy job that you can do yourself. But when you’re comparing bids, it’s good to know whether it’s included.

How are you planning to deal with transitions to other flooring?

A well-planned and attractive transition is the mark of a top-quality tile job. Adding an adequate base often raises the floor level and creates a height difference at transition areas. In many situations, marble or solid surface (one brand is Corian) thresholds make attractive transitions to other floors. Ask tile contractors how much height difference there will be between transition areas and how they plan to deal with it.

Do you understand our house rules?

Be sure to specify things like where workers are allowed to eat and take breaks while working on your project. If you don’t want anyone to smoke, make that clear. Also talk about your expectations regarding language (no swearing around your kids?) and the type and volume of music that is okay with you.

If you have pets, determine where they will be during the project and what your expecations are regarding the workers. You don’t want your pets or workers stressed out.

Photo: wavebreakmedia/Shutterstock

And finally, once you start, will you stay on the job until it's done?

And finally, once you start, will you stay on the job until it’s done?

Less-reputable contractors may take your down payment, start the job, and then disappear for a few days to start other jobs. Make sure your contractor plans to stay until the job is done. And to ensure timely completion, don’t make the final payment until every detail is complete. Another common tactic is to subcontract the work to other crews. This isn’t necessarily bad, but make sure your contractor plans to inspect the job daily and keep tabs on the progress and quality of the work.

https://www.familyhandyman.com/smart-homeowner/how-to-hire-a-contractor/view-all/

Refis could see uptick in second and third quarters | Katonah Real Estate

In the first quarter of 2017, refinances fell 45% from the fourth quarter, however the second and third quarters could see a turnaround in refi activity, according to a first look at Black Knight’s soon to be released Mortgage Monitor.

This chart shows refinance activity each week from October through June as refinance candidates fell from 8.6 million to 4.4 million.

Click to Enlarge

(Source: Black Knight)

Since interest rates fell below 4%, the financeable population rose to its highest point for 2017. While the current 4.4 million borrowers is down significantly from October, it is an increase of 56% or 1.6 million borrowers from mid-March’s low.

Borrowers who refinanced in the first quarter of 2017 cut their monthly mortgage payments by an average of $109 per month, or a total aggregate savings of $36.5 million per month. This marks the lowest total monthly savings since 2008 and a decrease from the fourth quarter’s $59 million.

But since the first quarter, savings have increased once again to a total of $1.1 billion or $260 per borrower each month.

This chart shows the total monthly savings borrowers saw each month.

Midcentury Rambler to Modern Marvel | Katonah Real Estate

Balodemas Architects

Photos by Anice Hoachlander

Houzz at a Glance
Who lives here: A professional couple and their young daughter
Size: 2,040 square feet (189.5 square meters)
Location: Kensington, Maryland
Architect: Lou Balodemas

After living in an apartment in Washington, D.C., for many years, the homeowners were looking for a house that would reflect their love of midcentury modern design. After finding the 1951 rambler, pictured below, in a D.C. suburb, they enlisted architect Lou Balodemas to transform it into their dream midcentury-inspired home. The key was a new butterfly roof, which gives the home uplifting charm right from the get-go.

Before Photo

Balodemas Architects

BEFORE: The house’s front exterior before the renovation was composed of white siding and brick.

Balodemas Architects

AFTER: “The profile of the original modest rambler remains evident in this renovation,” Balodemas says. The new front porch is marked by a butterfly-shaped roof chosen for its welcoming character. The addition takes advantage of a side-lot line that flares toward the street, increasing the presence of the south-facing facade. The design of the facades is a study in balancing the existing brick structure with the addition, which is clad in rich, modern ATAS metal siding and cedar. V-shaped steel siding was used for texture on the majority of the new walls, creating varying vertical bands of light and shadow.

Balodemas Architects

Balodemas and his team designed the screen wall in the foyer; it was fabricated by Abernethy Sticks. The screen maintains the home’s open feel but provides a brief pause for guests as they enter.

Tile flooring: Spa White, Stone Source; foyer wall paint: Minced Onion, Benjamin Moore

Balodemas Architects

The new kitchen at the front of house has large windows overlooking the yard. “The homeowners had a lot to do with the design and paint colors,” Balodemas says. The upper cabinets, floating shelves and window trim are made of clear vertical-grain Douglas fir; the lower cabinets are painted gray.

Countertops: Marmara marble; pendant lights: Artemide

Balodemas Architects

In the living room, on the other side of the foyer, the butterfly roof drives exterior views upward and captures plentiful daylight. A fireplace was removed, as the homeowners said they would never use it and wanted the wall space instead.

Wall unit: vintage Hans Wegner, homeowners’ own; large console: West Elm; coffee table and side tables: Blu Dot; flooring: red oak; rug and clock: homeowners’ own: accent wall paint: Normandy, Benjamin Moore

Balodemas Architects

Two existing bedrooms were combined and turned into a master bedroom.

Bed, vanity and nightstand: Heywood-Wakefield; Eames rocker and Martz table lamps: vintage, homeowners’ own; wall paint: White Rain, Benjamin Moore

Before Photo

Balodemas Architects

BEFORE: The back of the house did not have a door leading directly to the backyard.

Balodemas Architects

AFTER: The remodeled exterior continues the material juxtaposition of existing brick (painted gray), steel and cedar. “The metal has a V-groove that makes the surfaces catch light at different angles,” Balodemas says.

https://www.houzz.com/ideabooks/86019019?utm_source=Houzz&utm_campaign=u5443&utm_medium=email&utm_content=gallery3&newsletterId=5443

America’s Cities Are Running Out of Room | Katonah Real Estate

A shortage of homes for sale has bedeviled U.S. house hunters in recent years, so why don’t builders build more? One problem is that they’re running out of lots to build on—at least in the places that people want to live.

Cities that were sprawling before the Great Recession have begun to sprawl again. Space-constrained cities, meanwhile, have run out of room to build. That reality has spurred developers to focus on center-city neighborhoods where high-density building is allowed—and new units command exceedingly high prices.

At some point, said Issi Romem, chief economist at BuildZoom, vacant lots in desirable urban neighborhoods will run out. “If you have three days of rations left, you’ll be fine on day one, two, three,” said Romem, author of new research demonstrating home construction patterns. “On day 4, you have a problem.”

Historically, cities grew outward, as builders developed tracts on the periphery—then filled in the land between various developments over time. When these so-called expansive cities of the South and Southwest run out of infill land on which to build, developers simply pushed out further.
Some of these cities, like Austin and Nashville, have seen downtown boomlets. But more broadly, the building trends in those metros looks more like Dallas: Inside a 30-mile radius from the center of the city, new home sales decreased from 2000 to 2015. Outside the radius, though, sales are up by more than 50 percent. The same trend has played out to varying degrees in Phoenix, Atlanta, and San Antonio, among other cities.

In America’s most expensive cities, however, that dynamic has been turned inside out (or perhaps outside in). New construction trends in places like New York City have been tightly focused on downtown clusters where zoning rules permit high-density construction. These cities stopped expanding their geographic footprint decades ago, leaving builders to concentrate on finding buildable lots inside existing boundaries. As those lots became harder to find, land prices increase, reducing options for builders hoping to turn a profit. Developers building on pricey lots generally seek to offset land prices by building more densely, Romem said. In many cases, that means focusing on high-end apartments that offer better profit margins. The wealthiest residents are the only ones who can buy, and a vicious cycle is created.

Lately, there has been some give as oversupply of new high-end apartments forces landlords in New York and San Francisco to drop prices on expensive aeries. Still, the broader pattern continues to lean in the direction of higher rents.

What happens next depends on whether voters and their elected officials rewrite zoning rules to allow denser construction, said Romem, particularly in neighborhoods currently limited to single-family homes. Under current rules, he said, it’s unlikely new housing will get built at affordable prices, pushing city-dwellers into a game of musical chairs rigged to favor the rich.

“As long as these cities continue to do well economically, you’re going see poorer folks replaced by richer folks,” he said. “You’re going to read stories about teachers not being able to find place to live.”

bloomberg.com

Katonah village survey | Katonah Real Estate

1. How strong is the sense of community in Katonah?

100

2. What new businesses or stores would you like to see in town?

3. To limit noise pollution, Maplewood, New Jersey recently passed an ordinance limiting the use of gas powered leaf blowers. Would you support a similiar ordinance?

Yes

Not sure

Other (please specify)

4. What new events would you like to see in town?

5. How easy is it to find parking when you shop/dine in Katonah?

Extremely easy

Very easy

Moderately easy

Slightly easy

Not at all easy

6. Speeding on area roads is frequently raised as a safety concern. Would you support the use of “speed cameras” as a method of enforcing speed limits?

Yes

No.

Need more information to decide.

7. How many years have you lived in Katonah?

Less than 5 years.

Less than 10 years.

Less than 20 years.

More than 20 years.

8. How well are the streets and roads in Katonah maintained?

Extremely well

Very well

Somewhat well

Not so well

Not at all well

9. A group of residents has proposed the building of a bicycle pump track in Katonah Memorial Park which is currently being reviewed by the Parks Advisory Committee. Do you support this proposal?

Yes

Not Sure

Need More Information

Comments

10. Would you favor a ban of single-use, carryout plastic bags by retailers in the Katonah and at special events in town?

Yes

Need more information.

Builder Confidence Continues on Upward Trend | Katonah Real Estate

In a further sign that the housing market continues to strengthen, builder confidence in the market for newly-built single-family homes rose two points in May to a level of 70 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the second highest HMI reading since the downturn.

The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward. Builders, however, continue to deal with shortages of lots and labor and increasing building material costs.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Two of the three HMI components registered gains in May. The index charting sales expectations in the next six months jumped four points to 79 while the index gauging current sales conditions increased two points to 76. Meanwhile, the component measuring buyer traffic edged one point down to 51.

The three-month moving averages for HMI scores posted gains in three out of the four regions. The Northeast and South each registered three-point gains to 49 and 71, respectively, while the West rose one point to 78. The Midwest was unchanged at 68.

http://eyeonhousing.org/2017/05/builder-confidence-continues-on-upward-trend/

Cash Finances Smallest Share of New Home Sales Since 2010 | Katonah Real Estate

NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that just 4.7% of new home sales in the first quarter of 2017 were purchased with cash—down from the most recent peak of 9.5% in the fourth quarter of 2014. In contrast, the share of new home sales financed with conventional mortgages rose to 72.0%, its second-highest share since the fourth quarter of 2014. Meanwhile, FHA loan market share continued its upward trend, rising from14.4% to 14.7%.

Census data and NAHB calculations show that new home sales backed by VA products rose to 22,000 (+4,000) in the first quarter of 2017, though market share fell from 8.8% to 8.1%. The market share of VA loans averaged just 2.9% between the 2001 recession and the Great Recession, but has averaged 9.3% since the U.S. economy came out of recession in 2009.

It is worth adopting some caution associated with the Census market share estimates. In particular, the statistical error associated with the FHA, cash, and VA sales estimates from this data set are relatively high. This reduces the reliability of measures of short-term market changes.

Mindful of this limitation, over the long run the current FHA share is roughly one-half the 28% share determined for the first quarter of 2010 but still elevated compared to the 2002-2003 average of 10%.

Although cash sales make up a small portion of new home sales, they constitute a considerably larger share of existing home sales. In February 27% of existing home transactions were all-cash sales—the highest share since November 2015—according to estimates from the National Association of Realtors.

It is also worth noting that a different measure from CoreLogic shows a higher market share for cash sales for new construction: 17.7% in January.

FHA-backed loans were responsible for 14.7% of new home sales during the first quarter of 2017. Although the share has increased in two consecutive quarters, it remains more than twice its pre-recession average of 6.4%.

Conventional financing has expanded as the housing recovery has grown. The market share of new home sales with conventional financing was 62.2% in 2009 and 72.0% in the first quarter of 2017. This share has remained between 68% and 75% over the past four years.

http://eyeonhousing.org/2017/05/cash-finances-smallest-share-of-new-home-sales-since-2010/

Mortgage questions answered | Katonah Real Estate

The common questions many first-time buyers ask are now answered.

Purchasing a home and conquering financial responsibility is a goal for many people. But making this leap to homeownership is a big step, and it’s one that should be taken with careful consideration. Let’s face it, finding a home and securing a mortgage isn’t a walk in the park — and certainly nothing like signing a simple rental agreement. You’ve probably encountered confusing jargon such as “points,” “preapproval,” and “prequalification,” and funny names like Fannie Mae. Making sense of everything can leave you on the verge of frustration, but don’t worry — this is a completely normal feeling.

To help you demystify the process and get the most out of your first mortgage, we’ve asked some finance experts about things to consider before applying, some common points of confusion, and a few handy tips to help you understand the basics of mortgages.

What’s your best advice to a first-time homebuyer?

“Be prepared; do your homework. Check out reputable lenders in your area. Get prequalified so that you know the price range in which you should be shopping.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

“Talk to a local mortgage banker that you’re comfortable with! There are some great mortgage bankers willing to help, so you shouldn’t waste your time with someone who doesn’t make you feel comfortable with the process. Explain what you’re looking to do and what your ideal home-buying situation is. The right mortgage banker will customize your home loan to your specific scenario. Make sure they explain all the costs ahead of time, so that you know exactly what to expect once you get a purchase contract and start the mortgage process.” — Nick Magiera of Magiera Team of LeaderOne Financial

What should buyers be prepared for when applying for a loan?

“Every mortgage situation is different, so there’s really not a one-size-fits-all list of requirements. I recommend that you contact a mortgage banker that you know, like, and trust. If you don’t know any mortgage bankers, then I recommend that you choose a mortgage banker that your real estate agent suggests you work with. Your real estate agent wants you to have a smooth transaction, so they will only send you to mortgage bankers that they trust. A great mortgage banker will then walk you through the process and customize the mortgage around your specific scenario.” — Nick Magiera of Magiera Team of LeaderOne Financial

“There are a few things to get squared away before applying for a loan: 1. Cash for a down payment. Save money/acquire money for a down payment and closing costs. 2. A good working knowledge of your personal finances. Create a budget of your future expenses, as if you own the house, and make sure you can afford it. A good rule of thumb is that your mortgage should not exceed 30% of your take-home income. 3. A general idea of the price range of homes you are interested in. Research potential homes through a local Realtor or at Trulia.com. Compare by looking at real estate taxes, neighborhood statistics, and other criteria. Take your time! Your house may be the largest purchase in your life.” — Scott Bilker of DebtSmart

What is the value in getting preapproved or prequalified for a mortgage?

“It gives homebuyers an edge against competing offers. If a seller sees two offers and one has already been approved, then that is often the one that they go with, as there is less risk for them.” — Tracie Fobes, Penny Pinchin’ Mom

“First off, there is a difference between preapproved and prequalified. Prequalifying means you have done an initial lender screening. However, preapproval is the next step in the process. You have to give the bank many more documents like you’re applying for the mortgage. It’s worth doing because you will get a preapproval letter from the bank, and this will show sellers and real estate agents that you’re a serious buyer. It will also give you a better idea of which homes you can afford. Additionally, you will be able to act quickly once you find that perfect place without having to then seek out financing.” — Scott Bilker of DebtSmart

What range of rates should a first-time homebuyer expect with either a poor credit score or a strong credit score?

“On a conventional loan (Fannie Mae or Freddie Mac), the difference in price between a poor credit score (620) and a strong credit score (740-plus) could be as much as 3.0 points in fees, or 0.75 to 1.25% in interest rate. On an FHA or VA loan, the price difference may be up to 0.75 in points in fees or 0.125 to 0.250% in interest rate.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

“There is not a single universal standard. Lenders determine what kind of risk premium it will add to a loan based on your credit history and other information presented in a loan application. You can’t take a lender’s advertised interest rate for its best-qualified borrowers and tack on a set premium because you’re a C credit instead of an A credit (A credit being the least amount of risk).” — Nick Magiera of Magiera Team of LeaderOne Financial

What are some tips for paying off your mortgage faster?

“There are only two ways to pay off your mortgage fast: 1. Refinance at a lower rate. 2. Pay more toward the mortgage. That’s it. Don’t be fooled by biweekly mortgages because all they do is make you pay more. If you are not in a position to get a lower rate, then simply increase your monthly mortgage payment to an amount that is comfortable, keeping in mind that this is money you cannot easily get back. Conversely, if you pay more on your credit cards, you can always use the card again for cash or to buy things you need.” — Scott Bilker of DebtSmart

What does it mean when “the Fed raises the rates,” and how does it apply to mortgages?

“[The] Federal Reserve sets the interest rate that banks pay to borrow overnight funds from other banks holding deposits with the Federal Reserve. If the cost of overnight borrowing to a bank increases, this typically causes banks to increase the interest rates they charge on all other loans they make, to continue to earn their targeted return on assets. As banks increase their interest rates, other lenders or financial firms also tend to increase their rates. An increase in the federal funds rate does not directly correlate to a direct increase in mortgage rates but is viewed as a general signal to the market that the Federal Reserve views that the economy is growing and that interest rates will be increasing in the future.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

What are points?

“Points are fees the borrower pays the lender at the time the loan is closed, expressed as a percent of the loan. On a $200,000 loan, 2 points means a payment of $4,000 to the lender. Points are part of the cost of credit to the borrower, and in turn are part of the investment return to the lender. That said, points are not always required to obtain a home loan, but a ‘no point’ loan may have a higher interest rate.” — Nick Magiera of Magiera Team of LeaderOne Financial

“‘Discount points’ refers to a fee, usually expressed as a percentage of the loan amount, paid by the buyer or seller to lower the buyer’s interest rate.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

https://www.trulia.com/blog/mortgage-101-breaking-down-basics/?ecampaign=con_cnews_digest&eurl=www.trulia.com%2Fblog%2Fmortgage-101-breaking-down-basics%2F

30-Year Fixed-Rate Mortgage Hits 10 Week Low | Katonah #RealEstate

New Home sales shrink 11.5% | Katonah Real Estate

Sales of new single-family houses in the United States shrank 11.5 percent to a seasonally adjusted annual rate of 468,000 in September of 2015, the lowest since November last year. The stock of new houses for sale increased to its highest since March of 2010. New Home Sales in the United States averaged 654.25 Thousand from 1963 until 2015, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

United States New Home Sales

Actual	Previous	Highest	Lowest	Dates	Unit	Frequency
468.00	522.00	1389.00	270.00	1963 – 2015	Thousand	Monthly	Volume, SA

A sale of the new house occurs with the signing of a sales contract or the acceptance of a deposit. The house can be in any stage of construction: not yet started, under construction, or already completed. This page provides the latest reported value for – United States New Home Sales – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Content for – United States New Home Sales – was last refreshed on Monday, October 26, 2015.

http://www.tradingeconomics.com/united-states/new-home-sales