Article 1 (It Is Time to Think About Your Windows) Article 2 (Mortgage Contingencies Are Loan Provisions You Can't Afford To Ignore) Article 3 (Q&A with Michael Merrill) Article 4 (What to Know When Buying a Home) Article 5 (Home Sweet Home - The Advantages of Home Ownership)

It Is Time to Think About Your Windows By Sara Rosenfeld, Sr. Vice President, Co-manager, Hunneman & Co. Coldwell Banker's Brookline Office Summer is not over yet, but I always think about getting ready for the inevitable cold weather. It is so much easier to take care of your winterization plans now before you are actually battling those wind chill factors. The easiest way to save money and stay more comfortable in those cold months is to give your windows a thorough check-up. Whether your property is newer or older, it is always helpful to take a good look at your windows, NOW! If you are living in an older house or building, do not get fooled (or convinced by a new window sales person) into believing that new windows are better. Most windows were fitted to the existing house and made of materials that were suitable to the building type. There is nothing wrong with a wooden sash in a wooden window frame as long as they are properly maintained. Most building specialists will tell you not to replace a window unless it is "beyond repair." There are a number of excellent contractors in the area who specialize in repairing and restoring wood sashes and windows. (Call me if you need their names.) Many times, a simple adjustment to the weights, a little glazing of the glass, repairing any broken panes, and adding weather stripping is enough to make your windows tighter and more resistant to those winter winds. Single pane wood windows need the extra help of a good storm window. Many energy specialists will tell you that a window with a storm window gives you better insulation than a double pane window without a storm window. Keeping your storm windows in good working order does not take a lot of work. I keep a can of WD-40 (spray lubricant) available whenever I am about to move my screen panels up and pull my storm windows down in my triple track storm window and screen units. A little spray on the release latches and frames makes the entire job so much easier and keeps those panels in good working order. If you are noticing that your older aluminum storm and screen units look a bit corroded, or perhaps that the frames have become bent over the years, you may want to look into replacing the storm window before you consider replacing the actual window. Be careful whom you speak to for advice. Rely on a good reference of window contractors who can give you alternates besides replacement. If you own a property that has already gone through window replacement with a double pane window, or if you live in a property that is under twenty years old, you may have experienced one of the reasons I suggest not to have your windows replaced with this type of window. A double pane window is composed of two panes of glass with a small space between the two panes and then sealed. Eventually, the seal between the two panes of glass either leaks of breaks, causing condensation to build up between the panes, which leaves your windows almost impossible to see through. More importantly, you lose some of the insulation benefits when that seal breaks. There is no way to repair this problem. The entire window sash must be replaced at a very high price. Many of the home inspectors I work with and other window specialist I have spoken to say that the life expectancy for a double pane window is 5 to 7 years before the seal breaks. The seal is affected by exposure to weather and the level of pollution in the air. The seal's material weakens and results in the eventual leak and condensation build-up. Many of your turn-of-the-century homes have their original windows, while some of your younger housing stock have already gone through replacement! The solution is simple: get a number of opinions before you make the investment. Do it now in September so you will be ready when those first winter winds blow. If you need some names of window professionals, please call me at (617) 731-2447.

Mortgage Contingencies Are Loan Provisions You Can't Afford To Ignore By Bob Wattterson, Chairman, Mass. Mortgage Bankers Association and President of First Financial Many people, taking advantage of the healthy economy and favorable interest rates, make the decision to buy or to sell real estate. Some people try to do both, and risk compounded worries by selling a home at the same time they purchase one. But such big picture decisions should not be jumped into without carefully reading some fine print. In particular, buyers and sellers alike need to look closely at the mortgage contingency provision in any standard Purchase & Sales Agreement. A mortgage contingency allows buyers to have their initial deposit (typically 5-10 percent of the total purchase price) returned by the seller if they cannot obtain mortgage approval from a lender prior to a set date. There are numerous reasons why a buyer could have difficulty securing a mortgage commitment. A credit check could prove unsatisfactory. An appraisal of the property could prove that its value is lower than the purchase price. Or there may be a legal or code problem to blame, such as a Title 5 problem, that delays loan approval. In some arrangements, the mortgage contingency can be waived. But there is immense risk for the buyer who agrees to such an arrangement. Essentially, waiving the mortgage contingency indicates that the buyer, in a display of great confidence, is so sure that the loan will be approved that he or she is willing to give up their deposit if it isn’t. This move has trouble written all over it. There are no guarantees in the world of financing, and no matter how solid and sure everything may look on paper, there is always the chance that an unpredictable problem could come back to bite you. Buyers in this situation open themselves to the risk that they could either forfeit tens of thousands of dollars of deposit money or face the costly prospect of grabbing any mortgage they can get no matter how unreasonable the interest rate or terms are. Clearly, the advice here is not to waive the mortgage contingency. But there is another potential pitfall that needs to be carefully considered. It is common for someone to sell a home at the same time he is trying to buy a home. If this is the case, it is crucial to coordinate the mortgage contingency dates for both the buyer and seller. A seller, who is approved for a loan on a new home cannot afford to face the possibility that approval falls through for the buyer – a scenario that could scuttle their own deal. To avoid such a problem, make sure that the mortgage contingency date comes after your buyer’s mortgage contingency date. Any extension or change to one contingency should be adjusted for the other. As a buyer, the only safe way around a mortgage-contingency clause is to have your loan "pre-approved" by the lender so that before agreeing to a deal you already have your loan. For additional information or for a free brochure outlining the mortgage process and the many loan options, please call First Financial at (800) 836-0768 or visit http://www.firstfinancial.com.

Q&A with Michael Merrill of Merrill & McGeary, a real estate attorney. Q: I live in a condominium. My neighbor lives in a one bedroom unit. She keeps a number of pets in her unit, perhaps as many as five cats and a dog. recently the common areas have become quite dirty as a result of the pets, the hall carpet needs constant attention and the hallway is beginning to smell. The condominium allows pets, but given this situation shouldn't the Trustees do something? What do you recommend.? T.L., Boston, MA A: The condominium documents sets forth restrictions on the number of pets which are allowed in a unit. However, even if multiple pets are allowed, your neighbor cannot create a nuisance which is offensive to you or others in the condominium. Sometimes it is clear that there is a problem and other times it may be a matter of degree. Five cats and a dog in a one bedroom unit on its face appears to be a nuisance and a violation of the condominium documents. My advice is to simultaneously take two approaches to the situation. First, notify Inspectional Services of the unit and the potential sanitary code violation. Request the health inspector come to the unit and determine whether or not the unit owner is in violation of the sanitary code. Also, notify the animal control officer of the police department and request an inspection to determine whether or not multiple animals should be allowed in a small unit in a condominium. Finally, the Trustees should notify the unit owner in writing that having multiple pets in a unit and causing a nuisance is in violation of the Condominium documents. The owner should be requested to voluntarily remove some or all of the pets within thirty days. Failure by the unit owner to comply can result in fitness and/or Court action. Michael W. Merrill Q: I am purchasing a house. I know there are a number of tests on property that people obtain prior to purchase. It is not clear to me, however, what they are or what I should do. Tell me please. M.F., Brighton, MA A: After the offer to purchase has been signed by the Buyer and Seller, the Buyer has an opportunity to inspect the house. Generally, this time frame is within five business days. I recommend you retain an experienced and qualified home inspector. Do not rely upon a friend or a person who is doing you a favor. The home inspector will determine the quality of the structure and the mechanical systems, as well as provide you with a detailed written report on the components of the house. Based upon the results of the inspection you will be fully informed about the house and feel confident with your decision whether or not to proceed with the purchase or in the alternative request a modification of the sale price. In addition to the information provided by the home inspector, you may want to determine through other experts the amount of lead in the house and the cost of removal of the lead paint. Generally, lenders will also require evidence that there are no pests and/or termites which affect the house. Finally, many Buyers will place a radon testing device in the basement to determine whether or not there are hazardous levels of radon. These are some of the concerns that you should resolve prior to signing the purchase and sale agreement and paying the deposit. Michael W. Merrill

What to Know When Buying a Home By Jay McHugh of RE/Max Affiliates When buying a home, customers should be aware of the time constraints that are involved with a transaction. Buyers and sellers ought to know the essence of time so that each party can move swiftly and confidently with the transaction. For instance, a home may take between 30 and 90 days of marketing time for an accepted offer to come together. A typical residential purchase may then take up to 6-10 weeks after the accepted offer, depending on the type of transaction and the conditions. When a Realtor lists a home, they will enter the relevant information about the home into the Multiple Listing Service (MLS). This allows other agents to access the information on their computer or review the information through the MLS book. The listing agent may receive numerous calls to show the property once the home is downloaded, or the first showing may come within a couple of weeks. In any event, the homeowner should prepare the home as if a myriad of buyers were to visit the property at any moment. This is to prepare the owner of the importance of keeping a home in presentable shape throughout the listing period. If there is a lack of showings in the first couple of weeks, there is no need to worry. Reasons for this can be multiple, and your agent will inform you of them. Some such reasons may be that the date of the listing is near to a holiday weekend, inclement weather, or the end of a busy closing period for other agents. Another concern could be that the home may have been priced incorrectly. A review of the price with the agent is then necessary to promote the property to its best advantage. When a buyer is searching and has found that dream home, an Offer to Purchase is drafted and signed. The Offer can be for any length of time; however, a reasonable time frame is between 24 and 48 hours. Thus, all parties involved can discuss the terms and conditions with ease and without unnecessary pressure. This allows both parties ample time without having to make an ill-advised decision. Now is where the process speeds up. The seller as well as the buyer must make diligent efforts to communicate with the real estate agents to allow for changes from the original Offer. If the seller does not respond in a timely fashion because of reasons they wish not to disclose, they may lose the buyer to another property. On the other hand, the buyer must also act in good faith to impress upon the desire of purchasing the property with good intentions. The Offer often has a home inspection contingency that allows the buyer to inspect the property within a reasonable time after the acceptance of the Offer. If the buyer does not uphold the agreed-upon terms, then the buyer may lose the right to have an inspection -- or worse, lose their deposit. The important issue is that time is of the essence. Both parties must work together and if extensions are necessary, surely they are most often granted. After the home inspection, the buyer and seller must agree on the terms and conditions that will be spelled out more completely in a document known as the Purchase and Sale Agreement. A question that is asked often is, "Should we get an attorney," and/or "Is an attorney really necessary?" My answer is categorically "Yes!" Why choose to complicate matters with legal jargon or save yourself a small fee when the largest acquisition in most people's lives is sitting on the table? For example, a $100,000 home may cost $450 for a competent attorney to review and revise the Purchase and Sale Agreement (P&S) to your advantage. A modest fee for legal advice and service is a prudent price to pay for competent insight. In addition, most would agree that they will sleep easier knowing that they had a professional review their largest acquisition. Of course, the same line of reasoning passes along to the seller. Unquestionably, choosing an attorney who deals day in and day out of real estate transactions is a prudent investment when buying or selling a home. After the signing of the P&S, the buyer, if necessary, will apply to a lending institution for a mortgage to finance the property. Again, and we will assume for illustration purposes, if the Offer to Purchase the property had a mortgage contingency, the buyer must comply with the terms that were given with the Offer and subsequently reaffirmed in the P&S. Most often, a lender will take an application and require the borrower to provide certain items. Those items may include cancel checks for rental payments; income tax returns; mutual fund statements; and the list can go on. The importance here is to provide those items quickly and thoroughly so a commitment is awaiting from the lender. Once a commitment from the lender is provided, happy days are here for both parties! The seller and buyer now can revel with excitement knowing the closing is imminent. A closing date is then scheduled which is agreed to by both parties. Further, a walk through of the property is customarily conducted prior to the closing. This ensures that what was agreed to in the P&S is accurate at the time of the walk through. That may range from leaving appliances, furniture, wood for the fireplace, and an assortment of other belongings for reasons agreed to in the P&S. Whatever the case, you want to make sure you are buying what you are paying for. Lastly, the parties attend the closing and transfer the property. Finally, it is a good idea to remember to always ask questions when speaking with your Realtor. They are more than happy to answer your questions so that you are more comfortable throughout your transaction!

Home Sweet Home - The Advantages of Home Ownership By Rick Fedele Buying a home is the most harrowing decision you'll ever love. Unless you are the sort who collects Picassos, buying a home will be one of the single largest purchases you will ever make. First, the bad news... It is a big purchase that brings with it big responsibilities. As such, the decision to purchase a home should not be made without serious thought and research. Home ownership may not be made without serious thought research. Homw ownership may not be the right move for everyone. It is a costly, time-consuming, frustrating process that will leave you with added financial burden and previously unheard of responsibilities. And the good news... Now, since you have been sufficiently frightened and daunted, comes the good news. Despite all the hassle and burden of home ownership, there are advantages. And these benefits can go far beyond the simple joy of having a place to call your own and the security and sense of permanence it brings to you and your family. Although, at first, mortgage payments will build into equity, an ownership interest in our property that can be borrowed against or be converted to cash if you sell. Renters, on the other hand, make steady monthly payments with no equity or advantage or show for them. Reliable Roof Over Your Head Housing costs are also relatively stable. While rents continually increase, year after year, the principal and interest will remain unchanged for the duration of a fixed-rate mortgage - even if the dollar "cheapens" and buys more. Even an adjustable interest rate mortgage will, barring economic upheaval, remain staedy and might even decrease over time. Houses, unlike cars, increase in value over time. In only a few years, there will likely be enough demand in the housing market that your property will be worth considerably more than you paid. There are also tax advantages for homeowners, the biggest of which is a federal deduction on mortgage interest payments. There are, as mentioned earlier, downsides to owning a home. You will pay as much, and probably more, on your mortgage as you did for rent. And, in addition, there will be property taxes, insurance and utility expenses to keep up with. There will be such menial chores as mowing the lawn that home ownership ncessitates. And repairs become your responsibility, not part of a superintendent's daily rounds. The moral to all this is that owning a home can be one of the most rewarding things you will ever do, both on a personal and financial level. But, with such a major move, major thought and planning is required. All options and situations must be carefully considered before taking the plunge. And, if the time isn't right, there is no harm in waiting a while to ensure that you don't get in too far over your head. Richard Fedele is President of Summit Funding, a Boston-based mortgage company with offices at 376 Boylston ST. Summit is an affiliate of Pacific Guarantee Mortgage Company (PGM), based in Greenbrae, California. PGM is the largest mortgage broker in the United States with a full line of loans and an annual volume of in excess of $1.8 billion. PGM has more than 40 offices and 135 loan originators throughout the country, and brokers its loans to a network of more than 200 nationwide lenders. For additional information, please call 617/859-0900.