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Lenders' underwriters are scrutinizing all aspects of the mortgage process, not just the borrower's creditworthiness. Even a borrower with a high credit score, a cash down payment and verifiable income can run into snags in the mortgage approval process today if the lender's underwriters are concerned about the value of the property.

Here are some of the recent changes in the appraisal process that could affect you. Up until recently, underwriters usually rubber-stamped an appraisal report if it included information about three comparable properties that sold in the area within the previous six months that supported the purchase price of the property being appraised.

Due to the fact that property values are under pressure in some areas, lenders may ask to see information about comparable listings that sold within the last three months. The more recent the comparable, the more indicative it is of current market value, particularly in a changing market.

For some lenders, information about comparable properties that recently sold in the immediate area is not enough. They want information about comparable properties that are currently being offered for sale. Current list prices that are lower than recent sale prices could be a red flag that prices are softening. Lenders want to make sure that they don't approve a loan amount that is too high relative to the value of the property.

In areas where it is evident that property values have declined, borrowers may be required to increase their cash down payment by 5 percent. The lender will still make the loan, just not for as much as the borrower requested. This can pose a problem for borrowers who are cash-strapped.

For example, suppose a buyer is in contract to buy a home for $500,000 with a cash down payment of $100,000 and a $400,000 mortgage. The property is located in an area where prices have declined. So, the mortgage is approved for $380,000, or 5 percent less than the $400,000 the buyer requested.

For the deal to go forward, the buyer needs to come up with an additional $20,000. If the buyer can't or won't increase the down payment and the purchase contract includes financing and appraisal contingencies, the buyer may be able to back out of the contract without penalty, depending on how the contract was written.

more to follow in next blog

In most areas of the country, 2007 marked a change in the residential home-sale market. Buyers gained clout for the first time in over a decade. Inventories of homes for sale grew to record levels in some places. Price reductions, which carried a negative stigma when listings were easy to sell, came to be seen as a necessary part of the home-sale process.

That is not to say that price reductions are a good thing. They are not. The initial marketing effort is a prime opportunity to attract attention to a new listing.

When the merchandising and pricing are on target, a timely sale occurs. If the opportunity is missed either due to poor planning and preparation, or to a price that's too high for the market, the only hope for success is to lower the price quickly to an acceptable level.

Many sellers balk at the notion of reducing the list price soon after the property is listed. However, the timing of a price reduction is critical. If you wait too long, hoping for the impossible, it could be difficult to kindle enthusiasm for the property.

This is particularly so in an area where there are a lot of new homes coming on the market and where the sales volume is low. This means that the competition from other listings grows as you wait for the unlikely: a knight in shining armor to appear and pay the asking price or more.

tips for sellers to follow

This and all my info in my blogs are things that I have read that I thought others would be interested in.

Sue Mooers Bear's Den Real Estate, Redding, CA. 530-227-1255

web: realestatebysue.com

CAll me today, If your looking for a great deal on a home, now is the time to buy.

Call me Sue Mooers @ Bear's Den Real Estate 530-227-1255

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The salespeople in locally owned upscale appliance stores or national chains such as Best Buy are generally quite knowledgeable on the technical end of things. But they can't predict how well a particular set will work for you without seeing the space where you want to view it. For example, a big screen in the store will often look even bigger in your family room and overwhelm the space, Wilson said. To see if the size you want is a good fit, he suggested making a mock-up of the actual screen size and tacking it up on your wall. You'll quickly decide if it looks right or ridiculous.

Another consideration for a family-room space is viewing distance. The bigger the screen, the farther back you must sit to watch it comfortably. The rule of thumb, Wilson said, is that the viewing distance is 1.5 to 2 times the width of your screen. For example, a 56-inch screen size has a width of 46 inches to 48 inches and a viewing distance of about 6 feet to 8 feet. For most family rooms, a 50- to 60-inch screen works best, he said.

Another issue with the big screens in family rooms is where to put them. Bowing to the tradition of "home and hearth," most homeowners want to arrange their furniture around the fireplace. But they also want to arrange the furniture for maximum comfort while watching television. You can have both if you hang the set above the fireplace, Wilson said. Some homeowners think this looks terrible when the set is turned off. In these instances, he covers it with a retractable piece of art. For this arrangement to look right, he added, the size of the fireplace and the television screen should be similar. If your fireplace measures 42 inches on the diagonal, you would want a 42-inch LCD or plasma set. But he hastened to add, other factors can also come into play. If you have a long mantelpiece, a 50-inch screen might look OK.

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Heres something I read that was interesting.

A television for your home office is another increasingly popular option, Wilson said. Though some homeowners engage in solitary pursuits in their home offices and regard a television as an intrusion, others need to follow the news and stock quotes throughout the day. The challenge is placing the screen so that you can frequently glance at it without being distracted as you work at your computer. Wilson has tucked an LCD into a bookcase by the desk or placed one on the wall so that you can see it by swiveling your chair or looking up.

A television for the kitchen is also becoming increasingly common. Although it's the center of family life in most households, it's also a room where the cook is likely to spend a lot of time alone, especially if he or she gets home from work first and starts the meal prep before the rest of the household arrives. In those instances, a television can be good company. Because you'll be listening more than you're watching -- chopping vegetables, stirring sauces, and all those other tasks require your full attention --a small screen can work well, Wilson said. He likes to tuck a 15-inch LCD that flips down for viewing under a wall cabinet by your food prep area or, where possible, position a wall mounted LCD so that family members sitting at the kitchen counter can also see it.

The one place where most people want a set with a big screen is the family room, and most want the biggest size they can afford. But, Wilson advised, to maximize your viewing enjoyment, you need to consider other factors as well, including the viewing angle, the proportions of the screen, the degree of contrast, glare, and the sharpness of the image, which can vary from one type of set to another.

page 2 to follow, check back

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part 2

After cleaning, you need to lightly roughen the surface of the wood so that the new paint will adhere better. Using 220-grit wet and dry sandpaper, moisten the paper with water and lightly sand in the direction of the grain. After sanding, carefully remove the old plastic sheeting that you had put up previously, to prevent the dust that's on it from being spread around. Wipe everything down with a clean soft rag to remove most of the surface dust, followed by a final wiping with a tack cloth. Tack clothes are simply rags that have been treated to make them slightly sticky, and they do a great job of removing the final traces of sanding dust without leaving any residue on the cabinets.

If you are painting the doors and drawer fronts, remember to clean and sand them as well. You may want to find a convenient spot in the garage to set them up for painting, or you can set them up in the kitchen as well. They are, however, easier to paint if they are not still on the cabinets.

You are now ready to start painting. Begin by recovering everything with plastic, paying close attention to protecting counters, appliances, floors, walls and other surfaces that will not be painted. If you are not painting the insides of the cabinets, use masking tape to create a clean line between the cabinet face frames and the interior. Mask where the cabinets meet the wall, using blue (lighter tack) masking tape to prevent damage to the wall surfaces when it's removed.

For best adhesion and best finished appearance, you should consider applying a primer coat before applying the finished color. Primers are designed to create an intermediate bond between the wood and the finished paint, and are a step well worth taking. Your paint store can help you select the proper primer for the type of finish paint you'll be using. Primers are typically white, so if the final color you intend to apply is dark, the paint store can also tint the primer to a color that's closer to the final paint color.

You now have to decide between applying the paint with a brush or with a sprayer. Brush painting is more convenient and requires a lot less masking, but spraying is faster and tends to apply the paint more evenly without having to worry about brush streaks. Your paint store can help you out with the proper type of brush for the paint you're using, and if you decide to spray, they can either rent you the proper spray equipment or direct you to someone who can.

Apply the primer coat, allow it to dry completely, then apply the top coat. Follow all of the manufacturer's

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If you're getting tired of looking at your old kitchen cabinets but don't have the inclination or the budget to undertake replacing them, painting can offer an attractive alternative. Whether the existing cabinets are a dark stain from yesteryear or are already painted and in need of some refreshing, with the proper materials, some time and some patience, you can make quite a difference in a fairly short time.

GETTING READY

Any successful paint job begins with proper preparation, and nowhere is this more true than when painting kitchen cabinets. Take your time here, and the rest of the job will go much smoother.

First, you need to decide exactly what you want to paint. Some older kitchens have cabinets that are painted both inside and out, and that may be what you want to do again. You may wish to paint only the outside of the cabinets and leave the insides alone, or you may be planning on replacing the doors and drawer fronts, and only need to paint the cabinet-face frames and side panels.

Although it represents a little more work up front, the job will go smoother and easier if you plan on completely emptying the cabinets. Box up what you won't need for the next several days, and what you will need can be set up on a temporary work space in another room. Remove all of the doors, hinges and knobs, and store the hardware in zipper-lock bags so nothing gets lost.

Next, all of the surfaces that will be painted need to be cleaned and prepped to receive the new paint. No matter how good a housekeeper you are, older kitchen cabinets are sure to have a coating of grease on them, and that needs to be completely removed for the paint to stick well. Cover the counters and appliances with plastic sheeting, then wash the cabinets inside and out with a solution of trisodium phosphate (TSP) and hot water. TSP is a great general cleaner and degreaser -- follow the mixing, usage and safety instructions on the package.

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Before you can close your home purchase, your lender will require that you take out a hazard insurance policy. Most buyers get a comprehensive homeowner's insurance policy.

In addition to covering the home in case of fire, a homeowner's policy will cover such things as personal possessions, personal liability, vandalism, theft, water damage (but, not if the cause was flooding), and loss of the use of the dwelling.

The "cadillac" policy is a guaranteed replacement cost policy which will pay to rebuild your home even if the cost to rebuild exceeds your policy limit. This kind of coverage is not available everywhere, nor for all kinds of properties. Some companies limit the amount they will pay on a claim to 125 or 150 percent of the policy's face value.

Some insurance companies won't issue a guaranteed replacement cost policy on an older home. You may only be able to get replacement cost coverage. This will pay to rebuild your house if it's destroyed, but coverage will be limited to the policy amount. If you have replacement cost coverage you must make sure that you're insured for enough to rebuild.

part 2 to follow