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“Talk of joy: there may be things better than beef stew and baked potatoes and home-made bread -- there may be.”

-Ray Stannard Baker (under penname David Grayson), 1870-1946, Journalist and Author, Adventures in Contentment

Tip Of The Month

If you are considering buying a new house, but are concerned about selling your old one, a bridge loan might be the solution. A bridge loan can cover the gap between the two transactions. A typical bridge loan might be structured like this:

• The bridge loan is used to pay off the existing mortgage. The remaining money (minus six months’ prepaid interest and closing costs) will be used as a down payment on the new house.

• Bridge loans typically have a term of one year.

• When you sell the old home, the bridge loan will be paid off. If it is sold within six months, any unearned interest payments will be credited back to you.

• If the old home is unsold after six months, you will begin making interest-only payments on the loan.

• The mortgage on the new home must be financed by the same lender through whom you have the bridge loan.

 

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Make Moving Easy

You may think that you just have to hire some professional movers and throw your stuff in boxes before moving day, but moving is a lot more complicated. A recent Realty Times article offers tips on making moving smooth.

You have sold your old house and bought a new house. The hard part is over, right? Wrong. You still have to move all of your worldly possessions from the old house to the new house. Whether you’re moving down the street or across the country, this is a process that everyone dreads.

Moving can go smoothly, however. Keep in mind these tips when moving, and you will be happier, and less harassed, when it’s all over.

Before signing a contract with a moving company, be aware of the terminology:

• Understand binding and non-binding estimates with your moving company. A binding estimate guarantees the estimate for the move based on what is listed on the estimate sheet. If you add items or services later, you may have to pay more. With a binding estimate, the movers cannot ask you to pay more before unloading once they arrive at the destination unless you added items or services not included initially.

• As you might guess, a non-binding estimate comes with no guarantee of final cost. The final cost is determined after your items are weighed and certified and may be more than the estimate. However, the driver cannot ask you to pay more than 110 percent of the non-binding estimate before unloading.

• There is also a “not-to-exceed estimate,” sometimes called a “guaranteed price” or “price protection.” The “not-to-exceed estimate” is based on a binding estimate or actual cost, whichever is less. This estimate is binding on the mover and must be in writing. The driver cannot then collect more at the destination before unloading.

You can also make things easier for you and your family if you follow these suggestions:

• If you choose to pack yourself, start soon. It will always take longer than you think.

• If you choose to have professional packing, make sure you are present when your items are packed. You should also schedule the mover to pack a day or two before loading the van.

• Be flexible with scheduling. You may be asked to choose several consecutive days for loading and another series of days for delivery. This gives your mover the flexibility to keep on schedule.

• Make sure to resolve disagreements before signing off on the driver’s inventory. You will need to get legible copies of the inventory, with all items numbered. It is also a good idea to make sure that valuable items are listed separately.

• If you have anything of value, you might want to buy extra insurance. Interstate household goods shipments are moved under a very limited liability of 60 cents per pound. With this coverage, if you have 20 pounds worth of computer equipment worth $2,000 that is lost or broken, the mover will only be liable for a tiny amount - $12 in this case. If you have a lot of valuable items, full replacement value coverage is the most comprehensive protection available.

• If any of your possessions are damaged or lost, report this immediately and in detail on the driver’s copy of the inventory. If you find that any items are damaged or missing after unpacking, you have to file a claim within nine months of delivery. Your movers must acknowledge receiving the claim within 30 days and deny the claim or settle within 120 days. Remember that the mover’s maximum liability is the amount of liability you declared.

• Be present on moving day to discuss packing and delivery arrangements. Prepare large items for disassembly: strip beds, pack sofa throw pillows, etc.

• Stay in contact with your mover during transit and most importantly, be present for their arrival. If the mover can’t delivery your items, they may have to be stored, which would add significantly to your cost.

The most important thing to keep in mind during this stressful process is to keep calm. When necessary, sit down and take a breather. If you are prepared and organized, the moving process will be smooth and simple.


 


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