Homeowners

JUNE 2017 | MODERNWELLNESSGUIDE.COM

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Homeowners The Property Brothers offer up industry insight, from budgeting for your remodel to tracking style trends.

LEARN

about top housing trends among millennials from CNBC’s real estate expert Diana Olick

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more stories online, including the myth behind putting down 20 percent on a new home

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Move on Up The president of the National Association of Realtors offers tips for buying a home in a seller’s market. Page 4

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Always Be Prepared Learn how to prevent physical and financial disaster by preparing your home with best practices from SBP. Page 10

Join the Ranks Operation Homefront offers a rallying cry to unite against the pervasive trend of veteran homelessness. Online

Homeownership Builds a Solid Foundation on Which Families Can Thrive The CEO of Habitat for Humanity International shares a series of touching and inspirational stories about families who succeeded when they were given the chance to own their own home.

A

s the CEO of Habitat for Humanity, I get to witness firsthand what great joy owning a home can bring.

For example, each year, lumber from the Rockefeller Center Christmas Tree is donated to create the frame for a house that a family will purchase.

Many times, those homeowners speak with deep gratitude as they recall the gift of the lumber. Often, they say that having their own home is like experiencing Christmas every day.

years, she struggled just to survive.

When she became a homeowner, however, she was able to set up a shop in the house where she could also be near her girls. The business grew, so she added on to her home, and eventually one of the other daughters joined her as a hairdresser.

They were thrilled when they finally felt like they were moving forward. I got to visit with Alexandra again last year, and, with those same twinkling eyes, she told me she is doing well in school and still wants to be a lawyer.

Building a dream It’s the kids who always get to me the most. Several years ago in El Salvador, I bent down and looked into the eyes of Alexandra, a little girl who told me her dreams of becoming a lawyer so she could help other families. Her mother, Azucena, was already living her dream. Azucena had always wanted to be a hairdresser and own her own salon, but as a single mother that had been impossible. For many

Healing families in need On another occasion, I found myself being half-smothered by the embrace of an incredibly effusive woman who had come charging at me from out of nowhere at an event in New York City. She wanted me to know how much better her family was doing after moving into their own healthy home.

Daniel, her youngest, had been rushed to the emergency room with

asthmatic seizures far too many times. His condition was aggravated by rodents and mold in the apartment where they formerly lived. After the move, however, everything changed.

Daniel became a lively, talkative little boy who rarely became ill.

Jonathan T.M. Reckford CEO, Habitat for Humanity International

Accruing equity and improving their financial situations by purchasing a home provides many families with a new sense of security and hope for the future.

Fortifying after misfortune And sometimes, the happy moments come in totally unexpected ways.

Helen is a homemaker in the Philippines — in every sense of the word. She is a wife; she is a mother to three beautiful children; and she is a certified carpenter and mason.

She built her family’s house with her own hands.

She explained how she placed the concrete foundation, wove the bamboo strips into walls, plastered them with cement to make them stronger, welded the steel frames and riveted bolts to the roof. When she got hot and tired, she said all she could think about was giving her family a better home.

The shanty that her family once lived in was destroyed by Typhoon Haiyan. As a result of the disaster, she learned skills working on her new house and ultimately trained to become a formal builder. Her great joy was that she was able to get a job and that the family could finally start saving money.

A new lease on the future Accruing equity and improving their financial situations by purchasing a home provides many families with a new sense of security and hope for the future. Often, they invest themselves in their communities and create a ripple effect of strength and success as well.

Many homeowners also point to the little things. For example, they often beam when they tell about all the “firsts” in their new homes — like holiday celebrations when they gather with those they love and offer thanks. Emotions run deep when dreams finally become a reality. n

Publisher Daniel Pinkston Business Developer Jourdan Snyder Managing Director Luciana Olson Content and Production Manager Chad Hensley Senior Designer Kathleen Edison Designer Yeilha Vargas Copy Editor Emily Gawlak Production Coordinator Josh Rosman Contributors William Brown, James Diabri, Merlin Guilbeau, Tom Miller, Jonathan Reckford, Zack Rosenburg, Adam Sass, Jill Smits, David Stevens, Lawrence Yun Cover Photo Courtesy of The Property Brothers All photos are credited to Getty Images unless otherwise credited. This section was created by Mediaplanet and did not involve USA Today.

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4 | MODERNWELLNESSGUIDE.COM | NEWS

ON THE MARKET

Real Estate Guru Guides a New Generation Into the World of Homeownership

By Jill Coody Smits

Statistics vary on how many millennials own homes, but there is general agreement that even the highest estimate of 34 percent is lower than the number of under-35 homeowners in the past. There are a host of possible explanations for the decline, and CNBC real estate correspondent Diana Olick has insights for those considering homeownership.

Pros and cons Olick says the decision to rent or buy is pretty straightforward, but should factor in more than just whether or not a mortgage is cheaper than rent. Factor in how long you plan to live in a purchased home and whether you can recoup your down payment and closing costs during that period. “In most cases, owning will be cheaper than renting if you live in the home at least five years.”

She adds a word of caution, though, because while home ownership can be a good investment, the last housing boom proved that home values don’t always go up in the short term.

To move or not to move Before moving, Olick says it’s important to look at many different factors, including the local economy, employment opportunities, construction trends, home inventory and companies moving to or from the area, because all of these factors affect home values in the long term.

While Western cities like San Francisco have the highest home prices thanks to job and wage growth, those prices are causing “many workers and some companies to move offices to other cities like Seattle, Portland and Denver.” In turn, Olick says, those markets are also seeing “big home price growth because of their growing economies and the ensuing demand for housing.”

Barriers to homeownership Olick says the most common issues preventing people from buying a home are down payment and credit. “The mortgage market today is nothing like what it was during the heady days of the housing boom, when everyone and their dog could get a mortgage. Today, lenders require strict underwriting, full financial documentation and a down payment.”

Weak credit is another problem, she says, because “lenders today are looking for the most credit-worthy borrowers and average credit scores on most home loans are still near historic highs.”

Young home buyers According to Olick, the recession hit millennials particularly hard, because they faced high unemployment rates just as they entered the work force and also had to deal with high student debt and high rent.

Today, she says, “Homeownership is growing among millennials, but very slowly due to credit barriers and a lack of starter homes available for sale.”

Available resources Olick says prospective home buyers should take advantage of what’s out there. “Search for home values, comparables, inventory, mortgage rates, types of mortgage products, negotiation tips, title information, insurance and home care.”

3 Things You Must Know to Succeed When Buying in a Seller’s Market A realtor at the top of his field shares facts and suggestions for those planning on becoming a homeowner this year.

Are you planning to buy a home in 2017? This year is forecast to be the best year for home sales in more than a decade, and while that’s good news for home sellers, demand from buyers is likely to continue to be greater than the supply of homes for sale. So, it could be harder to find the right home at the right price.

If you are looking to make a home purchase this year and listings are scarce in your market, here are three tips.

1. Prepare a budget — and stick to it.

To determine the amount of home that you can afford, first find out what you are qualified to borrow by receiving a

mortgage pre-approval from one or more lenders. When budgeting, also consider the other costs of owning a home, such as property taxes, homeowners insurance, utilities and maintenance.

In a seller’s market, asking prices are prone to rise if a bidding war drives them higher.

Don’t get caught counteroffering above what you can comfortably afford.

2. Determine wants versus needs.

You may not be able to get a home in your price range with all of your desired home features, so create a list of important features and sort them by order of importance to better define what you truly need versus simply want. Think about what features could be changed or added later, and also consider how you’ll live in the house in years to come.

3. Work with a professional.

Seek out a realtor — a member of the National Association of Realtors — who is familiar with the neighborhoods and homes you are considering and the price point you’re able to afford.

Talk to friends and relatives to get their recommendations, and then interview several agents to determine the best fit.

When housing supply is tight, an affordably priced home in good condition will likely receive multiple offers, so be prepared to act quickly when you’ve found your ideal home; an agent will develop a negotiation strategy that can help make your offer stand out among others.

If you’re in a good financial position to buy, it may take a little longer than expected to land your new home, but it still makes sense to do it now. n

By William E. Brown, President, National Association of Realtors

INSIGHT | MEDIAPLANET | 5

A Renovation Loan Might Be the Key to Affording Your Dream Home SPONSORED

By Adam Sass

Considering today’s high housing prices, buying a move-in ready home may not be affordable. Renovating a fixer-upper may be your best solution.

Whether it’s remodeling a current home or buying a fixer-upper, more people are finding their dream homes through renovation.

Renovation lets you buy a larger or better located property and lets you invest in upgrades that will pay off over time in resale value and energy efficiency. Plus, you’ll better enjoy the space you’re in.

With the right approach, renovation may be easier than you think.

Listen to yourself “What’s important in your ideal home?” asks Craig Webb, edi-

tor-in-chief of Remodeling and ProSales magazines. “Are you improving your living situation, or are you wanting to make more money when you sell?”

Craig advises that housing trends change so frequently that “if you’re going to live in the house for at least five years after the remodel, don’t worry about the [resale] value you’re adding.”

A successful renovation isn’t as easy as it looks on home improvement shows. Hiring professionals to help you can save your sanity. Calculate the cost of your

dream changes ahead of time and then select professionals with a proven history.

Weigh your financial options “Renovating a kitchen, updating bathrooms or adding square footage offer the biggest impact in added value and improved quality of life,” says Brad McMullen, vice president of renovation lending at PrimeLending.

A renovation lender can help you understand your options, set a reasonable budget and meet your goals, such as rolling the

renovation and mortgage into one payment. “We base your loan on the cost of planned repairs,” says Brad. “If you’re knocking down the wall between the dining room and kitchen, that’s one loan. But if it’s a load-bearing wall, that’s another.”

PrimeLending offers a rainbow of renovation loan options in all 50 states. The right loan and lender will simplify the process and save you money — plus guide you through remodeling’s many “surprises” and across the finish line. n

We make the home loan process simple. For more than 30 years, we’ve given homeowners peace of mind whether buying, refinancing or renovating a home. With options for all financial situations and goals, our home loan experts will guide you through every step. Easy online application. Fast approval.

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6 | MODERNWELLNESSGUIDE.COM | FYI

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INSPIRATION

Mike Holmes’ Home Renovation Tips for 2017 and Beyond

By James Diabri

For many, the path to a career in construction begins in high school.

But for home renovation expert and reality TV star Mike Holmes, the journey began much earlier.

By age six, and under his father’s supervision, Holmes had successfully rewired the entire second floor of his family’s home. He continued to tinker throughout his teenage years, but hadn’t yet grasped the role this industry would end up playing in his life.

“I didn’t know that this would become my career,” he explains. “I don’t think anyone does. I think you just become who you’re supposed to be. I still didn’t know that at 19 years old, when I was offered a contract to manage a large construction company.”

Hacking your homes Holmes has been fixing people's crumbling, troubled homes ever since.

“Humans are creatures of habit; we tend to learn from our mistakes rather than learn from education,” he urges. “One area you don’t want to make a mistake is your home, because that mistake can be very costly — not just in finances, but in long term impact for you and your family.”

According to a recent Harris Interactive study, 85 percent of homeowners say remodeling is stressful. “The biggest mistake people make is not doing their own homework,” Holmes explains. “This ends up being a vicious cycle and a disaster for a bad or botched renovation every time.”

Pinching pennies According to the same study, nearly half of remodelers went over budget. With so much on the line, preparation and research are both critical. “It’s all about spending your money right the first time,” he explains. “We need to think not only about ourselves, but about the environment and the people who may live in that home in the future.

The most important thing a homeowner can do to ensure a successful renovation is thoroughly understand the scope of the project. “If you call 20 different contractors and ask them the same question, you’re going to end up hearing 20 different opinions,” Holmes cautions. “But education is key. The more you can learn, the better.”

New vs. lived-in If you’re in the market for a new home, you will have to consider if you want a home that you’ve helped design, or if you’re happy with a house with a history that may only require a few fix-ups.

“The assumption is if you buy a new home, you’re not going to have any problems,” he explains. “If you build it from the outside-in, odds are you are going to have a much better home.” Mike urges that families carefully research drywall, insulation and tile options before committing to one specific blueprint.

On the flipside, Holmes details, “If you buy a home that’s been renovated by five different families, you might step into a project that isn’t comfortable.” Previous renovations may have not been performed properly, which could lead to costly ventures down the line.

Holmes urges young people to consider a career in construction.

“Working in the trades is hard work — it’s long hours and complicated projects,” he shares. “But if you love it, there is no other option. I still love it, and it’s been over 30 years.”

Discover the Kinds of Homes Americans Are Dreaming About in 2017 The National Association of Home Builders helps turn dream homes into real homes, and they’re sharing the top housing trends of the year, from energy efficient appliances to smaller square footage.

While home buyer preferences and home trends change over the years, one thing has remained consistent: The majority of consumers still want to be homeowners. Furthermore, a majority of home buyers prefer a new home to an existing one, and 65 percent want that home to be in the suburbs, according to recent research and survey results released by the National Association of Home Builders.

Survey says The 2017 study “Home Buyer Preferences: Age, Income, and Other Factors” is based on a

survey of recent and prospective home buyers and provides insights into what buyers are looking for and the trade-offs they are willing to make.

While the survey showed that the preference for home size goes up as income goes up, a majority of buyers across all incomes prefer a smaller house with more features and amenities over sheer size. More than two-thirds of buyers are willing to trade size for high-quality products and features.

Top trends In fact, for the first time in several years, the average size of newly built homes dropped from 2,689 feet in 2015 to 2,634 in 2016.

This change marks a reversal of the growth trend that had been in place as builders focused on the higher end of the market during the housing recovery. As the entry-level market expands,

including growth for townhouses, typical new home size is expected to decline.

The survey revealed that among the specific amenities and features that home buyers want, a separate laundry room tops the list of must-haves across all income groups. Energy-efficient features like low-E windows, Energy Star-rated appliances, ceiling fans and programmable thermostats are also at the top of buyers’ wish lists. Home buyers also prefer open concept living, a patio, exterior lighting and a full bath and laundry area on the main level. There were also many features that were not so popular among respondents and will not be included in the average home, such as cork floors, outdoor kitchens, sunrooms and a home elevator. n SOURCE: NATIONAL ASSOCIATION OF HOME BUILDERS

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8 | MODERNWELLNESSGUIDE.COM | CHALLENGES

3 Things to Consider Before You Update Your Kitchen or Bathroom A remodeling pro walks through the steps that all homeowners should consider in order to manage remodeling madness and work towards their dream home.

You’ve found the home of your dreams, but the kitchen and the

bathrooms are dated and old.

Remodeling can breathe new life into an older home and provide appreciated value. The source of much inspiration, a remodeling project can be stressful, but it need not be. Follow three steps to guide the process and ensure the project is done right.

1. Understand your space.

It’s tempting to immediately start a renovation project. Be patient and wait awhile. Learn what does or doesn’t work. If you entertain or cook large meals, consider maximizing counter space. If you’re an empty-nester, a chef’s kitchen that supports multiple cooks might not be required. Knowing how you plan to use the space is critical and will help make design decisions later.

2. Research your options.

If real estate is all about location, location, location, a home remodeling project is about planning, planning, planning. Make a list to identify what must, should and would change as well as any items that won’t change. Use websites such as Houzz.com and Pinterest to gather ideas. Understand the different options in finishes. As an example, there are thousands

of tile options — from very basic and low cost to luxury marble and natural stone. Kitchen appliances come in a very broad range to suit all types of budgets.

3. Select the right remodeler.

Finding the right partner is important. Consult with neighbors, friends and visit websites such as NARI.org or NKBA.org which have lists of professional remodelers. A general contractor can manage and guide a remodeling project that doesn’t require design services and is a good choice if you already have plans.

Three different types of designers are available based on your project needs: architect, designer or design/build contractor. An architect might be required for a home addition or if extensive interior remodeling is needed.

A certified licensed designer has experience in kitchens, bath-

rooms and other interior space planning. Lastly, the design/build contractor can create the design and build it — all housed in a single company.

Secure three bids and make sure each bid is based on the same specifications. Resist the temptation to select on price alone. Review past work, testimonials and check references. Don’t assume the lowest bid will save money. Hiring a contractor who doesn’t have the necessary qualifications and experience might seem cheaper in the short run but could create risk later, especially if work is not completed thoroughly or accurately.

Remodeling done right can be a satisfying process and add more value to your home and enjoyment for you and your family. n

By Tom Miller, CR, CKBR, President, NARI National and Tom Miller Remodeling, Inc.

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INDUSTRY PERSPECTIVE | MEDIAPLANET | 9

4 Financing Steps That Will Open the Door to Homeownership Buying a home is within reach, but it's important to study up before you dive into the process. Here are a few key things to know about the financial aspect of your search.

Achieving the American dream of homeownership is a major milestone in life. But the process can seem daunting. Before you start house hunting, you will need to shop around for a mortgage. There are a variety of options, and your

lender can help sort out which kind of financing is best for you. Here are a few things to keep in mind.

1. Know your budget.

Remember that your monthly payment will include not only principle and interest but also insurance and taxes. Also, don’t forget that in addition to a down payment, most people will have closing costs that can be significant.

2. Understand the process.

Talk to people you know who have

recently purchased a home and ask about their experience. Talk to your lender about the process and timeline, so you’re prepared when it’s time to make an offer on a home.

Ask lenders what to expect after you make an offer on a home.

3. Shop around.

Get recommendations from friends and your real estate agent. Explore the different mortgage products they offer — especially those for first-time homebuyers, like Federal Housing Administration loans

and other types of loans with lower down payments. Choose a lender that’s responsive and helpful.

4. Pitch in.

Once you make an offer on a home, you’re working with a deadline: the closing, or settlement date. There will be a lot of forms and documen-

“A good lender will do its best to make sure that everything goes smoothly.”

tation needed beforehand. Make sure your lender guides you through the process so you stay on track.

Much of the process leading to closing can be done online or even on your smartphone. A good lender will do its best to make sure that everything goes smoothly.

If you understand the process before you start house hunting, you’ll be moving into your new home before you know it. n

By David H. Stevens, President and CEO, Mortgage Bankers Association

WE BELIEVE …it’s a great time to own a home.

We know it’s a big decision. One that has many factors, including ones that are personal and unique to you.

There’s a lot to consider, but here’s what we know. Buying a home today is as safe as it’s ever been. Interest rates are at historic lows and the process is clear. Home values are on the rise and the markets are strong.

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10 | MODERNWELLNESSGUIDE.COM | BIG IDEAS

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6 Critical Steps All Homeowners Should Take for Disaster Preparedness Don’t wait until it’s too late.

Learn from a national leader in disaster recovery how best to prepare your home for whatever may come.

Disasters today are occurring more frequently, causing more damage and happening in places with no prior history of them. They are no longer reserved for places like “Tornado Alley” or the Eastern Seaboard during Hurricane Season.

In the past two years alone, we’ve seen “1,000-year floods” in South Carolina, West Virginia, Texas and Baton Rouge, Louisiana. From 2007 to 2013, nearly 80 percent of Americans — 243 million people — lived in a county which had been included in at least one federally declared disaster during that time period.

At SBP, a national, long-term disaster recovery nonprofit organization founded in New Orleans six months after Hurricane Katrina, we’ve seen the enormous human toll that a prolonged,

unpredictable disaster recovery process can take on homeowners, their families, finances, health and emotional stability. That is why preparedness is crucial for homeowners. Being prepared — by understanding your risks, having the right insurance, storing financial documents properly and knowing how to file an insurance claim — can mean the difference between a prompt, efficient and predictable recovery and staring into the abyss of uncertainty and frustration.

To help homeowners become more resilient in the face of increasing disasters, SBP has compiled a set of preparedness resources and checklists to ensure homeowners are protected should the worst occur. We also have a series of easy-to-follow post-disaster guides to help homeowners make smart decisions after disasters strike.

To get started, here are six crucial steps all homeowners should take.

1. Know your risks, especially for flooding.

Whether major disasters like hurricanes or more common risks like kitchen fires or break-ins, every homeowner faces some level of risk to family and property. Every home is located in a categorized flood zone. Knowing what these risks are is the first step to planning for them.

2. Have a family emergency plan and disaster supplies kit.

In the event of an emergency, it’s critical to know where to go (evacuate or shelter in place) and how to get in touch with loved ones.

Have the essentials on hand to get through a minimum of 72 hours, including for any special medical or family needs.

3. Organize and have access to important documents.

Have identification papers, ownership records, financial and legal documents, and medical

records accessible, both for carrying out normal daily activities and in the event of the need to file an insurance claim or apply for disaster assistance. Physical records should be protected at home in waterproof (and, ideally, fireproof) storage, with copies accessible outside the home, such as in secure cloud based storage or a flashdrive kept at work or a bank safe.

4. Have an inventory of property and possessions.

Take photos of and keep receipts for high value items. Store this safely — a cloud based solution is ideal — with other important documents and update annually.

5. Get proper insurance coverage.

Make sure there is adequate coverage for the home structure and contents (including items that may require separate endorsements, such as jewelry or artwork)

and replacement cost coverage (for some, market value-based coverage isn’t enough to cover replacement). Also, be familiar with the insurance company’s process for filing a claim. It’s important to know that flooding is not covered by homeowners insurance and requires a separate flood insurance policy.

6. Take steps to physically protect the home.

Safeguard your family, home and possessions against damage and loss with: regular inspections and maintenance to keep structure, systems and appliances in good working order; plans to secure the home in different emergency situations (such as installing storm shutters, laying sandbags, or shutting off utilities); and storm-resistant building and retrofitting practices (such as sealing roof deck seams and installing hurricane straps in the roof). n

By Zack Rosenburg, Co-Founder and CEO, SBP

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12 | MODERNWELLNESSGUIDE.COM | AT A GLANCE

HIGH TECH

3 Easy-to-Fix Mistakes Homeowners Make With Their Security System

MEDIAPLANET

Busting the Mortgage Down Payment Myth

When it comes to home security, you can’t just set it and forget it. An expert shares ways to maximize the use of your security system and keep your home and family safe.

Many people have home security systems, but they are not utilizing the system’s full potential and functionalities. The good news is, there are simple things homeowners can do on a regular basis to maximize their system and avoid common mistakes.

1. Conduct a regular audit of your security needs.

One of the most important steps you can take is to conduct a regular audit of your security needs. Your lifestyle and your household can change over the course of a year, and so can your security needs. The change could be as simple as a new family pet or something much more, such as a new baby, a major home renovation or an elderly family member joining the household.

2. Put your security system to the test.

Evaluate your video surveillance system, motion detectors and outdoor lighting. Make sure the cameras can easily capture entryways. Review the quality of the video to make sure the resolution is optimized, as lighting changes throughout the year and can affect the quality of the video feed. Check out new smart home security systems that can alert you to issues before they happen. You may want to consider upgrading your system to incorporate these new technologies.

3. Update your passwords and passcodes.

Protecting the security of your security system is crucial.

Update passwords on a regular basis and make them more difficult to hack. Review those who have access to your home and update passcodes with your security company.

• Delete anyone who should no longer have access to your home.

• Add new household members.

• Make sure everyone in your home has memorized the new passcodes.

• Apprise your security company of any changes to your household.

• Always provide temporary passcodes to anyone who may need access to your home while you are away, such as a baby sitter.

Most importantly, arm your security system every time you leave your home.

Consumers who are considering adding or upgrading a home security system should ask if the company is a member of the Electronic Security Association (ESA) and if its employees are trained by ESA’s National Training School (NTS).

ESA member companies whose security professionals are certified through NTS have completed extensive training in electronic security. ESA members are also expected to adhere to a strict Code of Ethics and Standards of Conduct.

By Merlin Guilbeau, Executive Director and CEO of the Electronic Security Association

Too many Americans have mistaken beliefs about how much money they need to put down in order to buy a home. Read up to find out if owning a home is in reach for you.

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spiring home buyers who are just getting into the real estate market may have heard that putting down 20 percent of the total purchase price is required by lenders to secure a mortgage. The reality is that the amount required for a down payment depends on the loan type. However, the median down payment on a purchase mortgage in 2016 was just ten percent.

Oftentimes, down payments are even lower; the median down payment for first-time buyers has been six percent for three straight years.

Common misconception According to the National Association of Realtors’ 2017 Aspiring Home Buyers Profile report, a remarkable percentage of renters think a large down payment is necessary. Nine percent of renters say they believe they need more than 20 percent for a down payment on a home purchase, 26

percent believe they need to put down 15 to 20 percent and 22 percent say they need a down payment of ten percent to 14 percent.

The confusion about down payment requirements, combined with higher rents, rising home prices and a limited supply of affordable entry-level homes for sale, may be keeping aspiring home buyers from breaking into the real estate market, even though nine in ten indicate that owning a home is part of their American dream.

Getting started While there are benefits of a larger down payment, such as lower monthly payments and mortgage insurance premiums, there are numerous mortgage options available for creditworthy borrowers with smaller down payments, even as low as three percent of the purchase price, so consumers shouldn’t give up on their home buying dreams just yet. For renters who have the desire to own a

home and have steady jobs and good credit, follow these three tips to get started.

First, review your income, savings and debt level to determine how much down payment you can comfortably afford. Next, talk with a few lenders about low down payment loan options and determine how much money you are qualified to borrow. Never borrow beyond what you can comfortably afford. Finally, seek out a real estate professional and discuss your budget and home needs; he or she can show you available homes in your price range.

The mortgage process and buying a home can sometimes be a challenge, but, in many markets, would-be buyers will find that purchasing and owning a home is more affordable and enjoyable than renting, and opportunity awaits. n

By Lawrence Yun, Ph.D., Chief Economist, National Association of Realtors

14 | MODERNWELLNESSGUIDE.COM | SPOTLIGHT

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Property Brothers Share 5 Key Tips for New and Aspiring Homeowners

PHOTO COURTESY OF : THE PROPERTY BROTHERS

have to make sure that you’re not being stubborn.”

What’s trending in design this year? “Color is back in a big way,” Drew states. “We like to enrich a room with rustic flair or character pieces. Mixed metals are very popular again, as well.”

By James Diabri

Buying or renovating a home might not be as simple as it looks on TV, but Drew and Jonathan Scott want everyone to know that it’s within reach.

Keep these simple tips in mind, and you’ll start your journey with confidence.

Drew and Jonathan Scott are well-known from their hit series “The Property Brothers,” in which they help clients create sanctuaries from neglected pieces of real estate. Here are five tips the brothers shared with us for new homeowners in 2017 and beyond.

1. Be realistic about your finances.

“Sit down and really examine your present and future financial

situation,” cautions Drew. “If you know that you’re about to have a baby in nine months, you should also know that life is going to get a lot more expensive. Plan accordingly.”

When looking for your new home, Jonathan warns consumers to avoid being distracted by bells and whistles. “It’s easy to say, ‘Well, I love this walk-in closet so much that I can ignore that it’s backed on a nuclear power plant,’” he jokes. “Approach it like a business.

Buying a home is likely the biggest investment that you’ll ever make.”

2. Don’t charge it.

One of the biggest surprises firsttime homeowners face is learning that you need more money up front than the down payment.

From closing costs to utility adjustments, it takes a lot of green to acquire the keys to the front door. Shoppers with excellent credit may be able to purchase a house on plastic — but that doesn't mean that they should. “If you are looking to put your entire down payment or a major home renovation on a credit card, you should not be dealing in real estate,” Jonathan states. “It’s a terrible idea.

People get these low-interest up front offers, and it’s always a terrible idea.”

3. Be bold with design.

Most aspects of buying a new home come with a hefty price tag, which is why Jonathan suggests taking advantage of free resources whenever possible. “Create an

inspiration board. Spend several hours on Pinterest or Google Images and look at thousands of images,” he recommends. “Pull out what speaks to you, whether it be crown molding or a color palette. Anyone can be good at design — you just have to look at the right places for your influence.”

When helping clients create their dream spaces, the brothers urge homeowners to step outside of their comfort zones. “Some people think they know what they want, but most people only know what they’ve been exposed to,” Jonathan explains. “Drew and I have been in real estate for over twenty years. We’re constantly doing research to see what’s trending in design and what’s coming down the pipeline. You

4. Know (and trust) your lender.

Whether applying for a mortgage on a new home or tapping into a home equity line of credit to fund home improvement projects, a lender can help keep you and your family on track. “A lot of people are afraid to talk to lenders, because they think that they’re out there to trick them, but that’s not the case,” Drew explains. “If you’re organized and have your tax returns, your list of assets and debts, and a letter of employment, it’s very easy and efficient to work with a lender.”

The Property Brothers recently partnered with Chase, the second-largest originator of U.S. mortgages, to help consumers with their home financing needs. “We partnered with Chase because they have the same values we have about helping people learn more about home ownership,” says Jonathan Scott. “There are clear synergies between our two brands as we look to help people find, buy and fix up their dream home.”

5. Trust the professionals.

Tackling a home renovation on your own may seem like a great idea, but it’s not always realistic.

“There is value in spending money on professionals — the quality of a professional’s work and the value of your time,” Jonathan states.

“Bring in a professional that knows what they’re doing.” Drew continues, explaining: “People watch shows like ours on HGTV and then think that they know everything it takes to do a renovation. Understanding all that’s involved isn’t as easy as you’d see in a 45 minute TV show.” ■

SPONSORED CONTENT

TWO HALVES MAKE A HOME Buying a home is one of the most important purchases a person will make in their life. At Chase, we see a mortgage as more than just a transaction. It’s something that deserves personalized care and advice.

Whether it’s buying your first home or taking advantage of the equity you’ve earned, a relationship with a Chase mortgage banker can help put your home financing in focus.

HELPING YOU FIND THE RIGHT LOAN There are hundreds of loan options available in the market today that suit the needs of homebuyers with different financial goals.

From jumbo loans to products that require only three percent down, our experts can help customize a solution by comparing loan types and rates to ensure your loan makes financial sense now and in the future.

Chase recently improved its affordable product suite to offer a number of low down payment options and special benefits to help save on upfront costs.

“The down payment can be one of the biggest hurdles to achieving homeownership,” said Lawrence Bailey, head of national mortgage sales at Chase. “We want to help our customers experience the dream of homeownership at a cost they can afford.”

HELPING YOU TAP INTO YOUR HOME’S EQUITY And if you’re not looking to move, a Chase mortgage banker can assist you with other kinds of home financing, like through a home equity line of credit to fund home improvements, or a refinance to get a lower rate.

If you decide to move - or stay and upgrade - our experts can help you find the best path forward that suits your needs.

THEY HAVE EACH OTHER. YOU HAVE CHASE. Whether it’s finding, buying, or fixing up your home, our home lending experts are there for our customers at any stage in the process.

And with our new relationship with Drew and Jonathan Scott, stars of the HGTV series Property Brothers, we can help reach even more customers with their home financing needs.

VISIT US IN A BRANCH, ON THE PHONE, OR ONLINE To start online or take advantage of our educational tools and advice, visit us at chase.com/2halveshomelending. You can also visit us at one of our 5,300 branches nationwide or call one of our expert home lending advisors at 800-550-2684.

All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply.

Debt Consolidation Information: The amount you save on loan consolidation may vary by loan. Since a home equity line may have a longer term than some of the bills you may be consolidating, you may not realize a savings over the entire term of your new line. In addition, your line may require you to incur premiums for hazard and, if applicable, flood insurance, which would affect your monthly payment reduction. Federally Guaranteed Student Loans should not be consolidated because you will lose important federal benefits.

A 3% down payment on 30-year, fixed-rate mortgage with a loan amount of $153,158 and APR of 3.65% would require 360 monthly payments of $781. This payment example includes mortgage insurance, but does not include taxes and homeowners insurance. Actual payments will be higher. Home lending products offered by JPMorgan Chase Bank, N.A. © 2017 JPMorgan Chase & Co. HGTV is a trademark of Scripps Networks, LLC. Property Brothers is a trademark of Cineflix Media, Inc. Used with permission; all right reserved.

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