The National Military Family Association found that nearly 70 percent of families have had a problem with damaged goods during their last PCS. Nearly a quarter of those with damage decided not to file a claim because they missed the deadline or found the claims process too complicated.

Early planning and awareness of the claims process will prevent you from getting saddled with uncovered damaged goods.  Check out these tips for packing, unpacking and claiming to guide you through the entire process.

Packing

A smooth PCS starts before anything gets on the moving truck. Even though the moving company will most likely create their own inventory list, it may help you in the long run to make your own basic list to keep track of everything while it’s being packed as well as when it arrives at your new place. Take pictures of items you think will likely break and write down the serial numbers on all your expensive electronics.

It’s also a good idea to try to make the time to be there with the movers as they pack everything up. Knowing that everything is actually on the truck and having a general idea of what is in each box will immensely help as you unpack.

This is also the best time to make sure everything is packed up safely. Keep an eye on expensive and one-of-a-kind items you can’t replace. Add extra packaging to fragile items to avoid damage and not have to deal with claiming and replacing them.

Unpacking

Once you’ve arrived at the new place, make sure you have your personal inventory list on hand to take an immediate survey of whether everything has made it there in one piece. Look for missing or damaged items and document them on this form and have the driver confirm it. Make sure you have the driver’s signature on the DD form 1840 before they leave.

If you stumble upon a broken item you feel you aren’t responsible for afterwards, be sure to assess your options before calling your local claims office. If you have homeowners insurance that will cover items damaged during a move, check with them first. The military may not cover items for individuals with active homeowners insurance so taking it straight to the military could be a waste of time.

Claims

If you don’t have homeowners insurance that will cover the damage, you have 70 days from the moving date to file a completed 1840R form at your new claims office.  The final claim you turn in will include the following documents.

• Copy of PCS orders
• Written statement explaining the loss as not your responsibility
• Copies of inventory sheets
• Claim for Loss or Damage to Personal Property (DD Form 1842)
• Demand on Carrier/Contractor (DD Form 1843)
• List of Property and Claims Analysis (DD Form 1844)
• Denied personal insurance request if applicable

You are still able to turn in and add to the items claimed on the 1840R within 70 days of your PCS but after that, the government will not cover items. Keep your move well organized so you aren’t stuck paying for damaged property that wasn’t your fault.

Images courtesy of Beej55, james.thompson & Adrian F

This is a number that should cause VA loan borrowers to take a look at their current financing. What’s the rate you’re now paying? If you refinanced your current loan how much could you save per month?

There are two basic approaches to a VA refinance. There’s the VA Streamline program, which is designed to move current VA homeowners into fixed-rate loans with lower rates. It’s also intended to help borrowers move from adjustable-rate financing to fixed-rate loans. The other approach is a Cash-Out refinance, a new loan which allows you to get cash at closing.

Streamline Refinancing

With the Streamline program the VA has no requirement for a credit check or appraisal. However, while the VA provides mortgage insurance it doesn’t actually supply the cash used to make the loan. The money comes from private lenders the odds are that they will raise questions about credit and home values.

Under the Streamline program a qualified borrower can replace a current loan with new financing. The borrower cannot get cash at closing with a Streamline refinance, however you can add most settlement expenses to the loan amount, creating a refinance with little or no cash at closing.

Borrowers have to understand that the term “no cash” does not mean the same thing as “no-cost.” There will be costs, the question is whether they will be paid with a bigger mortgage that includes the old loan plus closing costs or will the borrower cover such expenses with cash from savings?

Cash-Out Refinancing

The other VA refinancing alternative is the Cash-Out refinance. With this program — if you have sufficient equity — you do get cash at closing and that cash can be used as you prefer, provided the lender agrees. Since a mortgage is low-cost debt – especially today – one of the best uses for the money obtained from a Cash-Out refinance is to pay off high-cost debt such as credit cards.

Paying off credit cards can significantly reduce monthly costs and thus produce a financial advantage. But the benefit of refinancing to accomplish this goal can be lost if the borrower once again runs up additional credit card charges. Refinancing and lowering monthly costs should be seen as a fresh budget-balancing opportunity, the chance to reinvigorate one’s finances by holding down debt, cutting costs and putting cash in a savings account. This is a great way for borrowers to increase credit scores and prepare themselves if a sudden need for cash arises.

Benefits

Even though refinancing may result in a lower monthly mortgage payment VA borrowers should ask if the benefits of a refinance are sufficient to justify the loan.

The quick and easy way to test the value of a refinance is to compare monthly savings with closing costs. For instance, imagine that a new loan will save you $75 per month. Imagine also that the cost to refinance will be $4,000. In such a scenario it will take 54 months before the borrower begins to see real savings from the transaction. This may make sense if you’re
going to remain at the property, but not if you’re leaving in two years.

Talk with a Veterans United refinance specialist at 888-212-1958 to learn more about how a Streamline or Cash-Out loan can help you.

The issue is this: When must lenders halt foreclosures involving a member of the military who serves in a combat zone? Are copies of orders or a letter from your commanding officer to the loan servicer enough to demonstrate SCRA coverage?

The new mortgage settlement says the paperwork must be “satisfactory” to the loan servicer. That opens a gray area and raises the question: What’s satisfactory? Are there cases where lenders could sidestep SCRA protections?

Attorney Emily G. Miller (no relation) with the law firm of Ballard Spahr, says lenders may want more documentation:

“In our experience, hostile fire/imminent danger pay is typically categorized as a line item on a servicemember’s leave earnings statement. To truly document eligibility, it seems that a servicer would have to request that the borrower submit a leave earnings statement with the itemized hostile fire/imminent danger pay. This creates both a documentation issue and the potential for communication issues.

“Take the example of an enlisted member of the U.S. Navy who receives orders to a ship. The active duty orders are to the ship itself, not to a particular location. A sailor, attached to any one of the fleet vessels based in Norfolk Virginia might deploy 3 or more times to a combat destination during a three year tour on board. None of those deployments are reflected on their traditional ‘military orders.’”

Ms. Miller explains that “an underway deployment may be scheduled in advance to last approximately six months, but a final return date is not set and any deployment can be shortened or extended pursuant to the military’s needs. The return trip works the same way. The sailor is entitled to hostile fire/imminent danger pay until crossing back over into specified waters, at which time normal pay resumes. From this point, the sailor is entitled to foreclosure protection for an additional nine months, unless he or she goes underway to a combat destination again.” (See: The SCRA Paper Chase, April 26, 2011)

As a result of the robo-signing mortgage settlement — which stems from the wholesale use of robo-signed documents — the argument being made is that orders and letters from commanders may not be enough to provide foreclosure protection under SCRA — especially when your place or time of service are unclear or not known in advance. Alternatively, the sole and central purpose of SCRA is to protect VA borrowers and their families, a purpose which should take precedence over any contrary or conflicting language found in the new mortgage settlement.

Meanwhile, if you receive any unusual lender letters, be sure to get legal advice immediately.

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The unscrupulous people who design schemes that scam homeowners approaching foreclosure don’t need high-tech resources. Mortgage modification scammers find their prey by looking at foreclosure notices on the Internet, in local periodicals and public files.

VA home loans have the lowest default rate on the market. But military homeowners aren’t immune to default. Here’ a look at some of the ways to spot mortgage modification scams:

Third parties

The company that services your VA loan is the only party that can grant loan modifications. Be wary of any guarantees regarding a modification application.

Money back

Be skeptical of anybody who offers you money back. Scammers may make that promise at the outset and tell you the money’s returned once they’re finished assisting you.

Paying in advance

If anyone asks for payment before they carry out a mortgage modification service, then forget it. Charging customers prior to completing mortgage modifications is often illegal.

Giving orders

Don’t listen to people who claim to be mortgage modification experts and tell you to stop paying your mortgage every month. Similarly, it’s a red flag if they tell you not to talk to your mortgage servicer about an offer.

Posing as the government

Through emails or any other communication, scammers will use fake government logos or claim to be affiliated with the U.S. government. Look into deceptive advertising with tools from MakingHomeAffordable.gov.

Signing the deed

Unless you’re working with your mortgage servicer, don’t mess with the deed to your property. Never sign the deed over to a person or company.

Pressure

As soon you get pressured by somebody to sign paperwork or transfer the deed, you should recognize it’s a scam. Scammers may even promise to save your home once you sign the deed over.

Mortgage payments

Pay only your mortgage servicer each month. Ignore companies or individuals who tell you it’s OK to make a payment with them.

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Finding the perfect home can take some time, so don’t be hesitant to start your house hunt early. It takes the average homebuyer 12 weeks to find a home to purchase, according to the National Association of Realtors (NAR).

Kick off your house hunt today with our congratulations, and via one of the following resources:

Internet

It’s no surprise that many house hunters start their home searches online. According to the NAR’s 2011 Profile of Home Buyers and Sellers, 35 percent of last year’s buyers launched their house hunts by viewing online listings.

Any local agent should have a user-friendly website with a comprehensive list of your area’s for-sale homes. Check realty sites frequently, as new listings can pop up at any time.

TIP: Listing websites are great for viewing photos and details of a home. But don’t immediately discard a home if the photos are uninspiring. It’s tough to get the real feel of a home until you step through the front door. If a home meets several of your qualifications but isn’t too photogenic, consider a home tour. A personal visit may give the home a totally different feel.

Find a Buyer’s Agent

If you’d rather have personal guidance right away, consider hitting the streets with a real estate agent by your side. The NAR report found that 21 percent of homebuyers in 2011 started their house hunts by finding a good buyer’s agent.

Agents can be immensely helpful during your house hunt. Knowledgeable agents can direct you to good schools, appreciating neighborhoods and prized properties. Agents can also be expert negotiators who can help you get the most for your money.

TIP: VA-savvy agents can be particularly valuable to military homebuyers. Military-friendly agents can steer you to homes that will easily pass the VA appraisal and answer any questions you may have about the VA loan process. Contact Veterans United Realty at 800-985-5723 to find an agent who works routinely with military buyers.

Drive Through Neighborhoods

Cruising through desirable neighborhoods can be a fun way to gawk and dream. You may even spot a “for sale” sign in front of a gorgeous, well-priced property. Eight percent of buyers started their house hunt by driving through neighborhoods in search of “for sale” signs, according to the 2011 NAR report.

TIP: Ambling through town can be a great way to understand the differences between areas. Neighborhoods can take on very distinct personalities, from hip and trendy to quiet and charming. Spend time in a variety of locations to find a neighborhood that fits your lifestyle.

Attend Open Houses

Dropping by an open house can be an easy way to tour a nice home and possibly meet a great real estate agent. Approximately 4 percent of home buyers attend an open house as the first step of their home search, according to NAR.

TIP: Open houses can be a great way to meet your future real estate agent. But be cautious of overly aggressive agents who want you to sign a buyer’s agency agreement after the first handshake. A buyer’s agreement creates a formal, legal relationship between you and an agent. Don’t enter into any agreement unless you’re convinced you’ve found the perfect agent for you.

Happy house hunting!

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Becoming a homebuyer means inheriting the title of landlord. First-time homebuyers can be caught flat-footed by the transition, but you don’t need to be a home improvement genius to tackle many day-to-day fixes. A great place to start is by assembling a multipurpose toolbox with the best tools.

Here’s a look at some potential starters:

Hammer and nails

A high-quality hammer and an assortment of nails is a must. Professionals swear by hickory-handled hammers. Other good quality hammers are made of fiberglass or solid steel. The price range for a good hammer is between $25 and $35.

Measuring Tape

Moving to a new home, measuring for a new addition to your home, or checking to see how tall your children are getting – you need measuring tape. Start with a 16-foot measurer for $8 to $15.

Duct Tape

Duct tape can work wonders. Buy a pack with a few rolls for about $4.

Flashlight

Aside from power outages flashlights can come in handy when repair jobs need better lighting, from fixing a pipe under the sink to searching for the circuit breaker in the dark. Any flashlight is better than none at all, but to get the best for your money look for an LED flashlight between $18 and $30.

Screwdriver

Whether you’re putting together a new shelf or tightening a loose screw you’re going to need a screwdriver. It’s best to keep both types around (Phillips and flat head). Buy a quality set from $20 to $30.

Utility Knife

Having one of these retractable cutters around will aid in art projects and home improvement projects galore. Getting a quality one isn’t hard, just be sure to buy a few spare blades while you’re at the store. Look to spend around $10.

Pliers

There are tons of uses for pliers in and outside the home. Bending or straightening wires, gripping pipes during a repair, tightening a nut and bolt and more. There’s also an assortment of types of pliers. Get yourself a needle-nosed pliers and larger adjustable pliers. The cost will be around $12 to $20 for each.

Batteries

Television remote, flashlight, toys, smoke detectors — they all run off batteries. The best tip on price is buying larger packs to keep the unit price down. You may not use the extras immediately, but it never hurts to have extras.

Photos courtesy of veryuseful and geishaboy500

Evaluating the exterior of a home is crucial to your wallet and your future happiness. Carefully examine a home’s exterior for the following costly problems, and don’t ever skip a professional home inspection if you decide to make an offer.

Windows/Doors

Windows and doors are designed to seal a home from outside air and moisture. But window and door quality can vary widely from home to home. Be on the lookout for the following flaws:

• Improper seals: Can you feel a draft when the window or door is closed? Is daylight showing through any cracks in the seal? Small gaps can usually be filled with weather stripping or expandable foam, but larger holes may necessitate window or door replacement.
• Rotten sills/door jambs: Rotten window sills or door jambs can be replaced fairly easily. Of greater concern is the reason behind the rot. Windows and doors should always be adequately protected from moisture (by gutters, water-resistant finishes and quality paint). Try to determine why rot is present and how difficult of a fix is in order.

Roof

A roof that looks OK to you may be full of deficiencies that can only be identified by an experienced inspector. Make sure to have the roof professionally inspected, and look for the following warning signs in the meantime:

• Water spots on the ceiling: Check every part of a home’s interior ceiling for water damage, including closets, utility rooms and garages.
• Uneven surface: Take a look at the roof from several different angles. Do you see any obvious buckling or uneven spots? Are all shingles present and in good condition?

Siding

Siding can be host to all kinds of problems, from mildew and cracks to rot. Get up close and personal with a home’s exterior walls, with an eye for these particular concerns:

• Vinyl: Check for mildew, mold or cracks in the vinyl pieces. Mildew and mold can be easily removed, but cracks may require patching with a new vinyl plank.
• Wood: To keep its classic beauty, wood siding needs to be properly maintained. Is the paint peeling? Are there signs of rot or decay? Are any clapboards missing?
• Stucco: Some types of stucco can trap moisture between the stucco and the wood framing. Over time, mold and rot can develop. It’s tough to identify trapped moisture with the naked eye, so make sure to have stucco examined by a professional.

Gutters

Gutters are essential tools for protecting soffits, siding, foundations and basements from water damage. Watch for these signs of gutter failure:

• Cracks/detachment: Are gutters cracked? Are they drooping away from the roof or tightly affixed?
• Mildew: Check the siding for a trail of mildew. Mildew striping is often the result of gutter cracks that allow water to drain down the siding.
• Water pooling: Examine the ground close to the house for water pooling. Splashes of mud on the side of the house may be evidence of a serious gutter problem.

How to handle problems

Buyers have several options if problems are discovered with a home’s exterior. If you still want to purchase the property, get estimates for needed repairs. You can either ask the seller to make repairs or to discount the home price so you can get the repairs done.

If problems are too overwhelming, continue your home search. Homes in poor condition will have trouble passing the VA appraisal. Plus, repairs often take longer and cost more than homebuyers originally assume. Rest assured that another home out there is a better fit for you.

Photo courtesy of DDohler

Wrong. Single men and women make up a big chunk of the nation’s homebuyers, and that trend continues to grow. Single homebuyers purchased 33 percent of all homes sold in 2011, up from 32 percent in 2010 and 31 percent in 2009, according to the National Association of Realtors.

But whether you’re single or happily married, timing your home purchase correctly is imperative. If you’re single and thinking of buying your first home, make sure to ask yourself the following questions:

Do I make enough money to buy a house?

Don’t let the lack of a secondary income keep you in a rental, but be reasonable with your expectations. Your income alone has to be high enough to meet loan standards. Each month afterward, you’ll be solely responsible for managing mortgage payments and upkeep costs.

How much income do you need to buy a home? To qualify for a VA loan, you need to hit a monthly debt-to-income (DTI) ratio of 41 percent or lower. To calculate your DTI, divide your total monthly recurring debts by your total monthly income:

DTI is certainly important, but it’s just one of many standards used to determine VA loan eligibility. For a thorough look at your qualifications, talk to a VA-approved lender.

Will my family size expand soon?

Getting married soon? Planning on having children in the next couple of years?

No one can predict the future. But if you’re nine months pregnant or getting married next fall, you’ll want to house hunt accordingly. Don’t buy a home that is too small for your immediate needs, and consider delaying your purchase if there’s too much uncertainty surrounding your future plans.

Is my location permanent?

If you love your current location and have a great job, it might be the perfect time for you to put down roots and buy a home.

But if PCS is a possibility or you’re itching to move to the opposite coast, you should probably delay your home purchase. Buying a home involves closing costs, property taxes, transfer fees and other charges that aren’t associated with renting. These costs are tough to recoup unless you’re staying in the home long enough to gain some appreciation.

The bottom line? Don’t buy a home if you’ll need to sell it in six months.

What benefits will I see from buying a house?

From financial advantages to the warm, fuzzy feelings that accompany your first set of keys, single homebuyers can gain all kinds of benefits:

• Return on your money: It’s a buyer’s market out there. If you buy a home at a good price and keep it long enough to gain appreciation, you could eventually sell your home for more than what you bought it for. Renters don’t have this opportunity.
• Better credit history: Lenders prefer borrowers who have good experience with credit. With a well-managed mortgage under your belt, you’ll be a great candidate for future loans.
• Freedom: This is one of the biggest plusses for homeowners. No more questionable landlords. No more rising rents. No more rental restrictions. If you’re a homeowner, you manage your space as you please.

Renting offers its own advantages, too, including less maintenance, greater mobility and perks such as pools or gyms. If you’re lucky enough to find the perfect rental at a great price (with a good landlord), renting may be the best route for you.

But if you’re ready to commit to your own little slice of heaven, don’t let anyone tell you that you have to be married to buy a home.

Ready to house-hunt? Contact Veterans United Realty at 800-985-5723 to discuss your options with a military-friendly real estate agent.

Photo courtesy of Panegyrics of Granovetter

What’s not so easy is determining the condition of the roof based on how it looks. Fixing a roof can be the most expensive house repair an owner may face, with a full replacement ranging from $2,000 to $12,000.

That means an inspection can be well the investment.

Your seller may or may not pay the $200 to $400 inspection fee, but be sure to have one before you purchase the home so you can factor the repairs into the cost.

The Process

The purpose of roof inspections is to find any problems as well as gauge the remaining life of a roof. The inspector will look at the roof angle and see how long it takes for water to evaporate. An acceptable rate is around two days but it can vary by location.

Inspectors will walk on the roof and look for weakened areas that indicate rot or leaks. If an area isn’t safe enough to access, the inspector will typically use binoculars. Every inch of the roof should be inspected including individual shingles.

The materials used to build your roof will also be assessed on when it was constructed, the last replacement as well as the materials’ nature of deterioration.

Common Roof Problems

Feel free to ask to see problem spots and potentially vulnerable areas during the inspection. Some of the most common problems include:

• Loose, broken or missing roofing material
• Blistered, curled of split shingles or tiles
• Shingle granules in rain gutters
• Improper air conditioning or swamp cooler installation
• Sagging between rafters or near ridges
• Broken or loose shingles near ridge and hip lines
• Rusty metal where house meets the roof
• Loose, missing or corroded flashing
• Proper ventilation to allow roof to breathe
• Depressions near vent pipes, clogged drains or separations in flashing that cause water pooling

Roofing Contractors

It’s recommended a homeowner get three different contractor quotes to compare. Comparisons should be made with the estimates as well as the materials to be used and labor costs. Reviewing consumer ratings or talking to someone who has used the contractor before can help with the expectations of timing, clean up and how well they stuck to the contract.

Prior to Repair Work

If your inspection indicates the need for repair, be sure to inspect the chimney before you begin any maintenance. This way you can coordinate your roofing contractor with a mason in order to get repairs that work together rather than become a detriment to the other.

Maintaining a New Roof

Ensure your new roof’s long life by getting certified inspections every two years. Because so many factors affect the condition of the roof, you may need to flex your inspections to account for weather damage, direction of the sun and insulation issues. You may have one side of your roof be more vulnerable than the other, so prepare your inspections thoughtfully.

Photo courtesy of iwona_kellie