Some people, particularly first time home buyers, feel intimidated at the thought of making a large down payment on a house. Sometimes, they feel some confusion about how much will be required.

The size of your down payment will depend on the price of the home you want to buy. It will also depend on your ability to pay and the type of mortgage you get.

As a general rule, lenders like to see a 20% down payment for a conventional mortgage. A conventional mortgage is one that is underwritten by a bank, savings and loan, or some other mortgage company. A 20% down payment on a $100,000 home would be $20,000.

If you are selling your current home in order to buy another, you may get enough cash to cover the 20% down payment. If you are a first time home buyer, however, you may have trouble coming up with that much money.

Certain mortgage options allow you to make a smaller down payment. Some lenders, for example, will accept smaller down payments if you buy private mortgage insurance, or PMI.

FHA loans require an even smaller down payment, as little as 3-5%. If you qualify for a VA loan, you don't need a down payment at all. Many special loan programs for first time home buyers also have a reduced down payments.

The principal behind these requirements is simple. Lenders know from experience that homeowners who put a substantial amount of their own money into buying a home are less likely to default on the mortgage.

If the mortgage is secured by an insurance policy (e.g. PMI) or by the government (e.g. FHA or VA loans), the lenders feel protected and they are willing to skip the requirement for the large down payment.

If you have any further questions, please do not hesitate to contact me! I would be happy to counsel you or recommend a good mortgage broker who can provide the specifics on the various mortgage programs available to you.

It's typically hard in late August to imagine that winter's coming up, but this year it's been fairly cool and rainy on and off! With that, this is a simple project that will make your roof look more attractive to prospective buyers (if you're thinking of selling your home). Even if you aren't, it will still increase the value of your home. If you have a few damaged shingles, it's probably best to replace them before winter - especially if you live in Vermont, where we easily get several feet of snow each season! You could call a repair man, but with the economy being the way it is now, it might be a good choice to try the project yourself and save a few hundred dollars. It's easier than you think! First, remove old shingles with a pry bar by inserting the bar underneath each shingle until you break the seal. Then, remove all old shingle nails by inserting the pry bar underneath each nail and gently tapping the bar with a hammer until the nail pops out. Be careful not to damage the roofing felt underneath the shingles. After you've removed all of the old shingles, you can start placing the new ones on. Simply nail the new shingles to the roof; a three tab row of shingles should take approximately eight nails. Place a small amount of roofing sealant over each nail as an effort to keep water out. Now your roof will look great and you can save the indoor projects for this winter! Stay tuned for more ready-to-sell home tips!

Buying a home is a rewarding experience, often afforded as a result of years of hard work. With this form of luxury, though, comes some additional responsibilities. Due to the widespread use of asbestos throughout the 20th century, it is essential for those involved in real estate to take the proper measures in inspecting and removing the mineral. Asbestos exposure has resulted in the development of severe lung cancers such as mesothelioma. Although medical technology continues to improve, mesothelioma claims thousands of victims every year in the United States alone. Mesothelioma can take anywhere from 20 to 50 years to develop, making it extremely difficult for physicians to accurately diagnose this disease. The amount of asbestos-related incidents in the country has resulted in law firms advocating for and protecting the rights of victims. The United States government and asbestos manufacturers have been heavily criticized for concealing and not doing enough to inform the public of the dangers associated with asbestos exposure. The removal of asbestos must be undertaken by a professional abatement contractor who is trained in handling dangerous materials. In addition, most people are unaware of the fact that eco-friendly products can cut energy costs. Cellulose and cotton fiber are both green options that should be considered. Cotton fiber is made from recycled batted material and treated to be fireproof. The United Nations Environmental Program states that usage of recycled materials such as green insulation methods and lighting can reduce energy use by 20 to 25 percent! These alternatives allow for a healthy lifestyle, free and clear of damaging substances.