This Saturday, February 25, 2012, the Special Olympics of Missouri is holding its annual Polar Plunge at Lake of the Ozarks.

The schedule of events for the Polar Plunge are as follows:

• 12pm-2pm – Registration
• 1:50pm – Parade lineup (for judging)
• 2pm – Parade of costumes
• 2:15pm – Announcements and giving of the Plunger’s Oath
• 2:30pm – Let the plunging begin!
• 4pm-7pm – Post plunge party at the Tar-Tar-A Resort

Particpants can change at the Lake of the Ozarks beach before the Polar Plunge in tents that will be provided for both men and women.  There are no showers on-site, but portable toilets will be available.  Money raised by participants will be collected at check-in.  In addition to the money you’ve raised, make sure to bring a towel so you can dry off after your plunge, a nice warm change of clothes, waterproof footwear (all “plungers” are required to have some kind of protection on their feet when they enter the water), a participation waiver from a parent or guardian for those plungers who are under 18 and, of course, your fans to cheer you on.

Earlier in the day (before the official Polar Parade and Plunge), the Special Olympics of Missouri will be holding its Polar Bear Strut, a 5K run/walk/”strut” that begins at the Osage Beach City Hall, continues along Osage Beach Parkway, turns north on Case Rd, meanders west and then heads back to City Hall.  Registration for the strut begins at 8am at City Hall, with the strut itself starting at 10am.  It’s completely separate from the Polar Plunge, but a fun way to start the day if you’re interested.  For more information about the Polar Bear Strut, please visit the website.

For more info on the Polar Plunge at Lake of the Ozarks, including what you need to do to participate and where you can donate if you can’t take the plunge yourself, please call Crystal Chalk of the Special Olympics of Misouri at 573-256-6367.  Even if you can’t make it to this event this weekend, find out how you can help raise money for the training and competition of Special Olympics athletes by visiting the Special Olympics of Missouri’s website.  This is just another reason Lake of the Ozarks is a wonderful place to live.

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

One expense that many first time Twin Lakes home buyers are unaware of is something called PMI (Private Mortgage Insurance).  This is a mandatory insurance required by home buyers who borrow more than 80% for their home purchase (ie, put less than 20% of the purchase price down).  This covers the loan company in case you end up defaulting.  This insurance premium will go down as your equity increases.  Once the principal on your home loan is less than 80% of your home’s value, you can have the PMI eliminated.  Of course, if you are able to put at least 20% down on your Twin Lakes home purchase, you won’t have to worry about PMI at all.

Closing costs are also things that tend to be overlooked by first time home buyers when buying a Lake of the Ozarks/Truman Lake home.  These costs include loan processing fees, title fees, fees to record the deed, etc).  These costs vary, so make sure you receive your Good Faith Estimate you are legally entitled to from your lending company.  Typically, you can expect to pay around 2-3% of the price of the home for closing costs.

Home inspections and appraisals are also necessary and, typically, paid by the buyer.  Sometimes, the seller may have already had an inspection done recently.  But it would be wise to have your own inspector look at the property to compare the findings.  You don’t want any nasty surprises when you move into your new home.

Property taxes are an unavoidable part of homeownership.  These are what help fund the local government and schools.  These costs also vary depending on where you live.  Taxes can either be paid in one lump sum annually or divided up into 12 payments and added onto your monthly mortgage payment.  Many homeowners find it easier to pay in monthly payments throughout the year rather than try to come up with the entire sum at one time.

Finally, all lenders require you to carry homeowner’s insurance on your Lake of the Ozarks/Twin Lakes home for as long as you own it.  The cost for this insurance is dependent on a variety of factors, including the size of your home and lot, age of the home and which company you use.  Get quotes from several different insurance companies before settling on one.

While saving is great, it takes more than a downpayment to buy a home.  Keep these expenses in mind when deciding whether you can afford that Twin Lakes home or not.  When you’re ready to start looking for your dream home in the Twin Lakes area, please feel free to contact us.

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

When selling your Lake of the Ozarks/Truman Lake home, you want to make every room look as enticing as possible

When you stage a room in your Twin Lakes home, the first thing you want to do is get rid of the clutter.  The same rings true with closets, drawers and cabinets.  For closets, take out all the old clothes, shoes and accessories you don’t wear anymore.  These can either be sold at a garage sale, donated to your local church or other charity (which means you get a tax deduction) or given to friends or relatives.  If they are in poor shape and beyond repair, simply throw them away.  A good rule of thumb with anything in the house that isn’t an heirloom or seasonal item is: if you haven’t used/worn it in the last 12 months, get rid of it.  It’s only taking up space. 

Organizing what’s left can make your closets look like they belong in a magazine.  Arrange clothes according to kinds of clothing (shirts with shirts, pants with pants, dresses with dresses, etc).  Then, you can further organize them according to color within each group.  This is much more pleasing to the eye.  Purchase a shoe rack to keep your shoes neat and tidy.  Shoe boxes and small plastic bins are great for accessories.  Put smaller luggage inside larger luggage to minimize the space they take up.

Extra shelving is always great to have in a Twin Lakes closet.  It seems that you can never have enough storage room.  If you have the budget for it, consider getting a professional storage system installed in your master bedroom.  Buyers love to see the added bonus of extra storage space.  However, adding a shelf or two will be perfectly acceptable if your budget doesn’t allow for more.

The same rules apply with your kitchen cabinets or pantry.  Get rid of any extra, unnecessary items.  Group similar items together: vegetables, soup, pasta, potted meat, etc.  Stack the cans and boxes neatly on the shelves.  It may help to visualize a grocery market shelf when “staging” your cabinets.  Dishes should be staged in the same way.

When preparing to sell your Lake of the Ozarks/Truman Lake home, don’t forget about hidden home staging, ie, the closets, drawers and cabinets.  Buyers will peruse every square inch of a home before they put down an offer.  This means drawers and doors will be opened and the contents inside examined thoroughly.  When you’re ready to sell your Twin Lakes home, let us know.

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

You need a good credit score to help secure the best deals when buying a Lake of the Ozarks/Truman Lake home.

The first thing you will need to do is to get a copy of your credit report from AnnualCreditReport.com, the only official site to to to for your free credit report.  You are legally entitled to one free report from each of the three credit reporting agencies (Experian, TransUnion and Equifax) every 12 months.  Not all creditors report their information to all three agencies.  Your credit score can vary quite a bit from one agency to the next.  That’s why it’s important to pull your report from all three.

Once you receive your report, examine it thoroughly to make sure all the information is correct.  Not only do you need to make sure that all the accounts listed actually belong to you, but you also need to make sure that the status of these accounts is correct.  For example, if you made arrangements to pay a delinquent account but it shows that the company charged it off instead, this can have a bigger negative effect on your credit score.  When you find errors, you will need to contact the credit agency it was reported to in writing as well as the company that reported it.  Explain the error, provide documentation as proof of your claim and request that the error be corrected.

Next, put a freeze on applying for any new credit.  This includes cars, appliances, furniture, department store cards and even changing your cable service.  Every time a business makes an inquiry about your credit, your score gets hit a few points.  This can quickly turn you from credit-worthy to undesirable by loan companies.

Now is the time to start paying down debt.  You want your debt-to-income ratio to be low as well as your credit used vs credit available.  Many financial experts recommend that you keep your credit card balance at less than 34% of your credit limit to show financial stability.  For example, if you have a credit card with a $3000 limit, your balance should never exceed $1000.  On the other hand, don’t close your credit accounts entirely either.  If you had four cards with a total limit of $10,000 and carried a balance totaling $3200, your credit used vs available would be 32%.  However, if you closed one of those cards that had a limit of $3000, your credit used vs credit available would increase to 45.7% ($3200 total balance with $7000 total limit).  Hold off on closing any unused accounts until after you have closed escrow on your new Twin Lakes home.

Finally, avoid the urge to move existing balances onto a new credit card.  This won’t decrease your debt load and your score may actually go down slightly when opening the new card.  Besides, a new credit card won’t erase the history of the debt on your credit report.

If you’re planning on purchasing a Lake of the Ozarks/Twin Lakes home in the next few months, start whipping your credit into shape now.  Time is of the essence.  You want to get your financial situation in the best shape possible before you apply for a loan in order to get the best deals available.  Even a 1/2% difference in interest rate will either save or cost you thousands of dollars over the life of your home loan.  That’s nothing to sneeze at!  Contact us when you’re ready to start looking at living the lake lifestyle.

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

The kitchen is the heart of the home…and the home sale.

Making your kitchen a showpiece doesn’t necessarily mean breaking the bank with a major renovation.  Sometimes, small touches here and there can create a brighter, more appealing, up-to-date look for pennies.  A bit of paint, new hardware on the cabinets and doors, a simple backsplash or crown molding can breathe new life into an old room.  Even a good deep cleaning can turn a dull kitchen into one that Twin Lakes buyers will find appealing.

The trick to determining whether a few minor changes are enough or if you need to completely overhaul your kitchen is to check out what’s happening in other Lake of the Ozarks/Truman Lake homes in your area.  You don’t want to spend thousands of dollars by adding travertine tile, brand new stainless steel appliances and granite countertops just to price yourself completely out of the market.  On the other hand, if your cute country kitchen is competing against homes with much more modern accoutrements, a simple coat of paint won’t do.  Visit open houses near you to get an idea of what is the standard fare in your neighborhood.  Take a look at photos in your local MLS to see what those kitchens look like.

It’s true.  The kitchen is the heart of the home…and the home sale.  Making your kitchen a showpiece depends primarily on what condition it is currently in as well as what is happening in your local real estate market.  Contact us now if you’re interested in selling your Lake of the Ozarks/Truman Lake home.  We can help you decide just where your kitchen stands with the competition and we’re always happy to help.

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

One of the most important decisions to make when you sell your Lake of the Ozarks/Truman Lake home is what amount you should sell it for. 

Your first step in pricing your Twin Lakes home to sell is to ask your REALTOR® to run the comps in your area.  Comps (or “Comparable Sales”) are a list of homes that were recently sold in any given area.  Since home pricing and value can change dramatically from city to city and even neighborhood to neighborhood, you need to know what homes in your particular area recently sold for that are similar in size (bedrooms, bathrooms, square footage), amenities, style and location to your own so you can get a more realistic picture of what you can expect to receive for it.

Don’t use any pricing from home sales dated more than 90 days prior to putting your Lake of the Ozarks/Truman Lake home on the market.  As we have seen over the past few years, real estate prices can change dramatically in even a few short months.  Even though they have begun to level out, your home may be worth less or possibly even more than it was just a little while ago.  Buyers and their representatives are well aware of this fact.

Find out if there were any special deals made on the recent home sales in your area.  For example, did the seller offer to pay closing costs?  Were they giving buyers downpayment assistance?  Did they throw in the furniture for the price offered?  You may have to adjust your own home’s price to account for the difference in this additional value given to the buyer.

Use the knowledge and expertise of your REALTOR® to determine if the sales price is right.  Real estate agents know the market better than you do.  They’ve seen inside other homes in your area.  They know intimately what your competition is.  When they offer up their advice on what you can expect, don’t take it personally.  Simply listen to what they have to say.  Remember, they want you to have a successful Twin Lakes sale almost as much as you do!

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

Who should I use to represent me?  Finding the right Twin Lakes real estate agent is important.  You want someone who has knowledge of the area as well as experience in local real estate sales partnered with great negotiation skills to get you the best deal possible on your dream Twin Lakes home.  Make sure to personally interview several agents in the area so you can make sure their personality meshes well with yours.  You want to be comfortable knowing that they will be representing you, especially since you will be working closely with them over the next few months.

What can I afford?  Don’t confuse what you qualify for in a home loan with what you can comfortably afford.  Just because a loan company says that they will approve a loan for up to $500,000 doesn’t necessarily mean that you want to shoulder that much of a mortgage payment.  A good rule of thumb is to not spend more than two to three years’ gross household income on a home.  For example, if your household income is $100,000 per year, you should be looking at Twin Lakes homes in the $200,000-$300,000 range.  Most financial experts agree that your total debt load (including payments on your mortgage, car, student loan and credit cards) shouldn’t equal more than 41% of your total monthly income.

Where do I want to live?  Your lifestyle will strongly dictate the answer to this question.  Do you want to live close to work so your commute is less?  Are you interested in living in the hustle and bustle of the city or does the idea of winding down at the end of the night in your beautiful Twin Lakes home sound perfect?  Do you want a smaller townhome/condo style of home so you don’t have to worry about yard work or do you need lots of outdoor space to roam around in?

When do I want to move?  The sooner you begin your Twin Lakes home search, the better, no matter what time frame you are looking at.  Creating a plan will help make the home purchase process go much smoother.

Why should I buy now?  Interest rates have remained at historically low levels (hovering around 4%) for months now and prices on Twin Lakes homes have never been better.  But that won’t last for long!  Feel free to contact us so we can help you with the who, what, where, when and why of buying your Lake of the Ozarks/Truman Lake home now!

Crist & Sharon Fanning, Your Link to the Lake Lifestyle

The biggest risks associated with a foreclosure come when you go through a foreclosure auction.  Buyers typically bid on a property sight unseen.  That means that bidders aren’t usually allowed to go inside and take a look around or have the opportunity to fully investigate the history of the property to make sure there are no liens attached.  Since a large percentage of foreclosed homes don’t make it through the auction process, they then revert back to the mortgage companies and are resold through an REO.  This can be helpful to you as a Twin Lakes buyer because you can do a bit more investigating of the property before deciding to buy it.

REO’s are sold “as is”.  This literally means that what you see is what you get.  Banks may make some repairs before they sell the Lake of the Ozarks/Truman Lake home but don’t expect that you will be able to negotiate a lower price based on the amount of repairs needed as you would in a traditional home sale.  That is why it’s a good idea to have a contractor come with you to make an estimate on what needs to be repaired or replaced before you put your offer in so you can assess whether it is worth it to you to buy the property.

A home inspection is of particular importance when considering a foreclosure.  A professional home inspector will be able to tell you the condition of the property as well as make suggestions as to what issues are critical and what you may be able to expect to have to replace or repair down the road.  Make sure that the roof is inspected (as it can be a major cost to replace) as well as an inspection of the sewer line and pool (if appropriate).  Since the home inspection will not cover pests (such as termites and mice), you may need to have a pest expert come in to inspect the property as well.  Even though these inspections will cost some money, it’s worth the peace of mind to avoid thousands of “surprise expenses” down the road.

Be patient and expect to compromise a bit.  There are many unexpected contingencies when dealing with a foreclosure.  For example, the bank may require that you use their escrow company instead of one that you want in order to make the deal happen.  Also, banks can be notoriously slow in getting paperwork completed in a timely manner.  Speed bumps are bound to happen. 

Above all, read a contract completely before signing anything.  If you have questions, ask them.  Have your financial advisers, real estate agent, lawyers, etc, read over the contract to get their expert opinion.  Never sign anything without thoroughly reading through its contents and understanding exactly what you are signing.

Buying a foreclosure can be a sound financial decision.  Be prepared for what to expect with a foreclosure and you will lessen the chance of being hit with surprises.  The road to homeownership can be a rough one sometimes.  But you’ll have to agree that it can be well worth the trip.  If you are interested in purchasing a home in the Warsaw area, please contact us today!

Crist & Sharon Fanning, Your Link to the Lake Lifestyle