A call of help to your lender leads to filling out your budget, tracking every dollar you earn and spend, with no insight into what they are looking for.  Should you have a few dollars left at the end of the month or should you be running a deficit?

So in steps a company called Homeowner Toolbox Inc out of Irvine, CA.  They have created a website that provides a free, self-assessment tool for homeowners to give them some insight into the modification process and show them if they are able to qualify for modification.   The tool is tailored to each mortgage lender, which you can pick from their drop-down box.  You will then be led through the free assessment set to the standards of your particular mortgage company.

The tool is located here:

http://www.counselordirect.com/

Erik Laine

LP Design

20610 Rush Meadow Lane

Rogers, MN 55374

http://www.lpdesignonline.com

(888) 340-1769

• Roofing – cold or rainy months
• Heating – late summer
• Air Conditioning – late winter or early spring
• Chimney Cleaning – any time other than fall!
• Project Design – fall and winter

2.  Pay extra now for energy-saving features – Some ideas for this would be higher efficiency windows,                 heating and cooling products and appliances.  Compare the energy savings between the products,                   try to find something with a pay-back period of 7-10 years.  Don’t forget to keep in mind any tax                       credits available to help offset the higher cost!  Upgrading while remodeling will save you money                     over upgrading in the future.

3.  Hire an architect of designer, at least the initial sketch – The most expensive mistake you can make is             building an addition or remodeling a room and not being happy with the finished project.  Most                       architects will walk you through the design phase and be able to help tailor the space to your needs               while pointing out key details you may have not of thought of to help make that room special.

4.  Don’t be afraid to pitch in and take on some parts of the project yourself – Some great ways to save                 money are demolition, moving materials, digging and cleaning up the job site, sanding trim and                       painting.  Make sure you coordinate the work with your contractor to keep everything on schedule and       the project flowing smoothly.  Delays can be expensive!

5.  Plan for future upgrades if you can’t afford them now – This goes back to working with a contractor to             help plan for future upgrades.  Things to consider would be higher capacity electrical service, in-wall           wiring for electronics in every room, rough plumbing for a future bathroom, rough framing for future          doors / windows, or French doors that open to a future deck.

6.  Compare the cost of remodeling over buying new – In our current housing market, this is most likely an       easy decision.  With house prices as low as they are, it usually makes more sense to buy existing and             create the living space of you dreams.

7.  Shop for materials yourself - You won’t save much looking for building materials (ie: sheetrock and               lumber), but finish materials, as in carpet, appliances, faucets and lighting fixtures can pay off by                     getting exactly what you want and finding bargains.

8.  Don’t overdo windows and skylights – These are great additions to any room by adding beautiful views         and a feeling of openess, but more is not always better.  Aside from the higher cost of materials, even             energy-efficient windows will increase your heating and cooling noticeably.  Large skylights can turn a         room feel like a furnace in the summer.  These additions could lead to having to replace your air                     conditioner, heat pump or furnace, or possibly adding different units in the room to keep a comfortable       living space.

9.  Try to avoid moving any plumbing or changing the foundation – These can’t always be avoided, but               when needed could add thousands to a remodeling project.  The older the home, the more costly this           becomes.  Plumbing especially as codes are always changing.

10.  Don’t forget the internet – You have access to a wide selection of products and discounts of up to 40-             50%.  Anything from appliances to lighting fixtures, even flooring at great prices.

Erik Laine

LP Design

http://www.lpdesignonline.com

(888) 340-1769

FIRST TIME HOME BUYER:

For the first time home buyers out there, they have extended the $8000.00 tax credit into 2010.  You need to have an executed purchase agreement by April 30, 2010 and have until June 30, 2010 to successfully close on the home.

To qualify as a first time home buyer, you or you spouse can not have owned a home in the past 3 years.

EXISTING HOME OWNER:

To qualify for this tax credit of $6500.00, you must purchase your home between the dates of November 7, 2009 & April 30, 2010, with a final closing date of June 30th, 2010.  You must have occupied the home for 5 consecutive years out of the last 8.

Single family homes, condos, townhomes & co-ops are all eligible for this credit.  To receive the full amount of the credit, the home must not be valued at more than $800,000.  Single buyers incomes must be less than $125,000, married couples up to $225,000 to receive the full credit.  The credit begins to decrease for single buyers from $125,000 to $145,000 and for married couples from $225,000 to $245,000.  If you earn over these amounts you will not qualify for any credit.

This is a tax credit, meaning it does not have to be re-paid if you live in the house for 3 years.  If the house is sold prior to 3 years, the full credit will be re-couped at the time of sale.

For answers to these and other questions, you can contact the IRS directly at (800) 829-1040.

Here are some sites with information on the tax credits and buying a home:

• http://www.irs.gov/newsroom/article/0,,id=204671,00.html
• http://www.hud.gov/buying/comq.cfm
• http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

Erik Laine

http://www.lpdesignonline.com

(888) 340-1769

LP Design

Erik Laine

LP Design

http://www.lpdesignonline.com

(888) 340-1769