Protect Your Nest Egg from Quick Cash Offers

Visiting grandparents bend and kneel to hug grandchildren

The Division of Real Estate recently issued this consumer advisory – “Take 5 to get wise and learn how to protect your real estate nest egg.”

Colorado residents owning a home for 20 years or more are being targeted for the equity in their property. An offer may include a cash transaction, a quick sale, no inspection, and the freedom to leave your problems behind.

In Colorado’s hot real estate market, a lot of homeowners might not know the market value of their property, which is what unscrupulous investors want. They are trying to drive down your property value with misleading and confusing information. Their goal is to make a profit by turning around and selling your property at true market value.
This can happen to anyone because people who perpetrate fraud are good at what they do – separating you from your money.

Protect your nest egg when considering an offer on your property:

  • Go to www.dora.colorado.gov/dre to research licensed professionals.
  • Go to your local county government website and look up property values for you and your neighbors.

Other tips to protect your nest egg when considering an offer include:

  • Be wary if you weren’t thinking about selling.
  • Always keep someone you trust in the loop.
  • Do research on real estate brokers working in your neighborhood.
  • Always seek legal advice.
  • Know the value of your property and understand the motivations of why an investor wants to buy your property.

By taking a few steps you can protect your home, your finances and your future. If you have questions, please contact us.

A Holiday Gift for Seniors: Help Them Stay Safely in Their Homes Longer

Lonely man's hands on a stave in front of the fireplace with christmas tree.

As seniors age, the risks of living at home grow.  If you’re looking for the perfect holiday gift for a senior family member, friend or neighbor, helping them stay safe at home may be the perfect gift. Here are some ways you can adapt their homes for their holiday gift! 

Lighten and Brighten the Home. Ensure areas around entryways, hallways and stairs are well lit, and add brighter or extra lights if needed. You can also install glow-in-the-dark light switches or motion-sensor lighting throughout your home so seniors don’t struggle to find the light switch in the dark.

Make Doors Easy for Seniors with Arthritis to Open. Turning door knobs may be difficult, especially if a senior has arthritis. Lever-style door handle may be easier for them to use than a round one.

Make it Easy for Seniors to Move Around Safely. It’s important to make it easy for your senior loved one to move around the home. Remove tripping hazards like rugs, children’s toys, pet toys, etc. Make sure cords aren’t dragged across the floor. And watch for furniture that may be placed near hallways or doors. Seniors may be at risk of bumping into these.

Provide Safe Places to Sit. A chair or bench at the front door or whatever door they enter regularly is helpful. Seniors can sit down while taking off shoes or putting on shoes or boots. They can also place bags or other packages there when they come in from outside.

A tall counter stool is also a great addition to the kitchen. It can allow seniors to remain independent and cook while sitting down, which is great for seniors who can’t stand for long stretches of time.

Do a Double Check on the Bathroom. A walk-in shower is much easier for seniors so they don’t have to step into a tub. Adding hand rails and grab bars will help them with balance.

You can also purchase a stool that is made for showers or tubs so they can sit in the shower. And special shower heads can be installed with hoses so they don’t have to stand up and reach above them.

If room allows, consider putting stool or small chair in front of the mirror so they can sit when shaving or participating in on other grooming routines.

Make It Easy to Call for Help. Consider using a call-assist service or personal emergency response system that the senior can wear on their neck or wrist and push a button if they need help. If this isn’t an option make it easy for seniors to have their cell phone with them or near them at all times.

Seniors may need a little extra help and a little extra love as they age. But many can stay in their homes safely with a few changes around the house. 

You Can Take Control of Some of What Affects Your Home Loan Interest Rate

House and Percentage Symbol

Interest rates are at the top of everyone’s minds right now, especially if you are in the market for a home. But your interest rate isn’t set in stone. Several factors play into the interest rate on your loan, and you are in control of a lot of what affects it. Here are some of the things that can affect the interest rate on your home loan. Let us know if we can help you determine what your home loan may look like.

1. Credit scores
Borrowers with higher credit scores generally receive lower interest rates than borrowers with lower credit scores. Lenders use your credit scores to predict how reliable you’ll be in paying your loan. Credit scores are calculated based on the information in your credit report, which shows information about your credit history, including your loans, credit cards, and payment history. If you’re considering buying a home now or later, check your credit score and do what you can to get it as high as possible.

2. Home location
Your home loan’s interest rate may be impacted by the in which you are purchasing. Part of this could be due to the health of the housing market in your state or county. If the housing market is healthy, the lender is less likely to risk default on the loan, so the interest rate may be lower.

3. Down payment
The more money you put down on your home, the lower your interest rate will likely be. You don’t have to put down 20 percent to get a loan, but if you do, you may get a better interest rate.

If you cannot put down 20 percent or more, you will be required to purchase private mortgage insurance (PMI). PMI protects the lender in the event a borrower stops paying the loan. The cost of PMI is added to the overall cost of your monthly mortgage loan payment. You may be offered a slightly lower interest rate with a down payment just under 20 percent, compared with one of 20 percent or higher. Why? You’re paying mortgage insurance, which lowers the risk for your lender.

When determining your down payment and subsequent interest rate, keep in mind the overall picture of what you are borrowing. The larger the down payment, the lower the overall cost to borrow. Getting a lower interest rate can save you money over time. But even if you find you get a slightly lower interest rate with a down payment less than 20 percent, your total cost to borrow will likely be greater since you’ll need to make the additional monthly mortgage insurance payments.

Look at the overall loan and payments, not just the interest rate, when getting a home loan.

4. Loan term
The term of your loan is how long you have to repay it. In general, shorter term loans have lower interest rates and lower overall costs, but higher monthly payments.

5. Interest rate type: fixed or adjustable
There are two general types of interest rates: fixed and adjustable. Fixed interest rates do not change over time. Adjustable rates may have an initial fixed period, after which they go up or down each period based on the market.

Your initial interest rate may be lower with an adjustable-rate loan than with a fixed rate loan, but that rate might increase significantly at a later date.

6. Loan type
There are several broad types (categories) of mortgage loans, such as conventional, FHA, USDA, and VA loans, all of which have different eligibility requirements. Interest rates can be different depending on what loan type you choose. Your lender will discuss different options with you and will help you choose the right loan to keep you and your family financially secure.

7. Discount points
Points, or discount points, lower your interest rate in exchange for an upfront fee. By paying points, you pay more upfront, but you receive a lower interest rate and therefore pay less over time. Points may be a good option if you will keep the loan for a long time. There are also tax benefits for discount points for the purchase of your primary residence. Talk to your accountant or attorney about this.

Getting a home loan is about more than just the cost of the house or the interest rate. There’s a lot to understand, and it is our privilege to help you navigate the home buying process. Please contact us if we can answer any questions.

Tips for Helping to Make Moving Easier for Seniors

Collaboration: Grandfather and grandson assembling furniture

Where others may see “trash,” elderly family members and friends may see “treasures.” As America ages, more and more of us are trying to help family and friends move to smaller homes or into independent living communities. Talking to seniors about downsizing and releasing decades of treasures is not easy.

Here are a few tips to help seniors downsize.
Don’t pack away your patience. “Patience is a virtue.” When helping seniors make a move, you will most likely need a lot of patience. Remember, often they are leaving homes they have lived in for decades, are dealing with physical or mental ailments, and are moving out of necessity rather than desire. Helping anyone through a difficult life change takes patience and compassion.

Avoid tackling the whole house at one time. It may be more efficient for you to go full steam ahead, but elderly family members may be stressed emotionally and physically. Think in terms of months rather than days for helping elderly family members move. Tackle one room at a time to make this easier on you and them!

Ask yes-or-no questions rather than open-ended questions. Open-ended questions are more stressful. Rather than asking, “Which pots or pans do you want?” present a manageable question such as, “I have your best frying pan, a large pot and a small sauce pot. Does this work?” This makes it easier for seniors to make a decision faster.

Use the new space as a guide. Find out how much closet and cabinet space there will be in the new home and fill that space only. How big are the rooms? Mark that information off on a diagram to see exactly what space you have to fill and use. There’s no reason to bring too much stuff.

Encourage giving a gift now. Urge your parent not to wait for the next holiday, birthday, or other milestone to bestow; remind him that there’s no space for storage. Ask, “Why not enjoy the feeling of giving right now?” (And if you’re the recipient — just take it, and encourage your relatives to do the same. You can donate the item later, if you don’t want it, but the immediate need is to empty your parent’s house.)

Target recipients and charities for specialty items. It’s time-consuming to find willing recipients for everything, but it may be worth the effort for items that your parent would be relieved to see in a good home. Examples: Schools may welcome musical instruments, old costumes. Auto repair shops and community maintenance departments may take tools and yard tools.

Call on the professionals. A fast-growing specialty, senior move managers specialize in helping older adults and are skilled at both the emotional and practical dimensions of late-life transitions. These experts can defuse a parent-child emotional clash, while handling everything from sorting and packing through hiring movers and unpacking in the new place.

Encourage seniors to focus on their most used items and let the rest go. What seems useless to you may be the most comforting item a senior has. The newest item isn’t necessarily the most favored item. Learn the story behind something…find out why the old plastic tumblers are preferred over new, sparkling glasses.

Aging is a fact of life. Taking a few steps at a time can help make any move easier.

Help Seniors Stay Safely in Their Homes Longer

Grandmother and granddaughter cooking in the kitchen.

As seniors age, the risks of living at home grow. A few changes to their homes may make it possible for seniors to stay in their own homes longer, helping them to save valuable financial resources and live comfortably in the home they know. Here are 5 tips to get started.

Lighten and Brighten the Home. Ensure areas around entryways, hallways and stairs are well lit, and add brighter or extra lights if needed. You can also install glow-in-the-dark light switches or motion-sensor lighting throughout your home so seniors don’t struggle to find the light switch in the dark.

Make Doors Easy for Seniors with Arthritis to Open. Turning door knobs may be difficult, especially if a senior has arthritis. Lever-style door handle may be easier for them to use than a round one.

Make it Easy for Seniors to Move Around Safely. It’s important to make it easy for your senior loved one to move around the home. Remove tripping hazards like rugs, children’s toys, pet toys, etc. Make sure cords aren’t dragged across the floor. And watch for furniture that may be placed near hallways or doors. Seniors may be at risk of bumping into these.

Provide Safe Places to Sit. A chair or bench at the front door or whatever door they enter regularly is helpful. Seniors can sit down while taking off shoes or putting on shoes or boots. They can also place bags or other packages there when they come in from outside.

A tall counter stool is also a great addition to the kitchen. It can allow seniors to remain independent and cook while sitting down, which is great for seniors who can’t stand for long stretches of time.

Do a Double Check on the Bathroom. A walk-in shower is much easier for seniors so they don’t have to step into a tub. Adding hand rails and grab bars will help them with balance.

You can also purchase a stool that is made for showers or tubs so they can sit in the shower. And special shower heads can be installed with hoses so they don’t have to stand up and reach above them.

If room allows, consider putting stool or small chair in front of the mirror so they can sit when shaving or participating in on other grooming routines.

Make It Easy to Call for Help. Consider using a call-assist service or personal emergency response system that the senior can wear on their neck or wrist and push a button if they need help. If this isn’t an option make it easy for seniors to have their cell phone with them or near them at all times.

Seniors may need a little extra help and a little extra love as they age. But many can stay in their homes safely with a few changes around the house.