TIPS TO HELP YOU SELL YOUR HOME MORE QUICKLY

Owners can help expedite the sale of their home by following a few guidelines to make the house more attractive to potential buyers. A thorough self-inspection and a walk-through with your real estate agent can reveal imperfections that might hinder a sale. (Please note: in Washington state, as in many other states, the seller must complete a "Real Property Transfer Disclosure Statement" form about the condition of property being offered for sale. Material defects must be disclosed.)

House-hunters typically begin their inspection of a property by previewing its "curb appeal." A surprising number of homes are eliminated from consideration before potential buyers get out of their car because they find the exterior appearance unsightly or uninviting.

Following are some basic suggestions for improving the marketability of your home.

• Examine the lawn and flower gardens, making sure the lawn is mowed and free of drainage problems. Colorful flowers and shrubs can enhance the home's attractiveness.
• Check the sidewalks and driveway to make sure they're free of weeds and clutter.
• Inspect the home's exterior, looking for loose, missing or damaged siding and brickwork, a cracked and uneven foundation, and gutters, downspouts or fences that are in disrepair. Paint or repair any problem areas.
• Clear the decks! Clean decks, patios and steps, removing unnecessary furniture, toys and debris. Tidy up any pet areas.
• Inspect the front door. A fresh coat of paint or stain and a clean doormat can help create an inviting "first impression."
• Check lighting, making sure pathways and entry have adequate illumination.

Inside the home, you should conduct an equally thorough inspection, since potential buyers are likely to open doors and cupboards, look into, look behind and operate everything to make sure the home offers the space, layout and features they need. Extensive redecorating isn't usually recommended, but all rooms should be clean and clutter-free. Think "light," "bright," "open" and "airy."

• Clear rooms (including closets and storage areas) of everything but the basics. Arrange furniture so rooms look spacious.
• Remove clutter from the basement and garage. Sweep floors, degrease spots and dust.
• Have carpets and drapes professionally cleaned.
• Patch walls and ceiling cracks, then repaint or wallpaper, using neutral shades.
• Check the basement for musty smells and signs of mildew or leaks, correcting any defects.
• Inspect bathroom and kitchen fixtures to make sure they sparkle, are leak-free and are otherwise functioning well. Remove stains from countertops, sinks, tubs and showers.
• Test major mechanical components, including the furnace, water heater and electrical system.
• Make sure windows and doors open and close easily. Replace cracked or scratched glass.
• Be aware of the amount and type of insulation.

DETERMINING HOW MUCH HOUSE YOU CAN AFFORD

Low mortgage rates and special incentives for first-time buyers are making the dream of home ownership a reality for more individuals and families. As you begin your search, you'll want to determine how much house you can afford and what type of mortgage is best for your budget.

In general, four factors will influence your ability to buy that dream home. They are:

• how much of a down payment you will make. The more cash you put down, the less you'll have to borrow.
• the amount you need to borrow (your mortgage) to cover a monthly payment for the loan principal (amount borrowed), interest ("price" charged for your use of the lender's money), taxes ( a portion of property taxes), and insurance.
• the mortgage interest rate.
• the repayment terms of your loan.

When applying for a mortgage, your current earnings and expected income during the next few years may influence your borrowing power. Outstanding long-term debt and how long you expect to stay in the home you're buying may also be considered.

Most realty agents recommend getting preliminary approval for a loan, usually by getting "pre-qualified" or "pre-approved" for a certain monthly payment. Getting approved for a loan requires having a lender verify your financial situation, including your current assets (income, savings, investments and other sources of revenue) and your liabilities (existing loans, credit card balances and other obligations). Using this information, the lender will evaluate whether there are sufficient funds for the down payment, whether you have adequate income to make monthly payments, and your overall credit-worthiness, which is based on a review of your borrowing history.

According to many real estate professionals and lenders, the biggest reason people get turned down for a loan is poor credit. Reviewing your credit status and correcting any mistakes before applying for a loan can help you avoid surprises or disappointments. Consumers may request a copy of their credit report from one of three major reporting services:

Equifax: 1-800-685-1111

Trans Union: 1-800-851-2674

Experian: 1-888-EXPERIAN (1-888-397-3742)

A small fee may apply, although if you've been denied credit recently, federal law mandates that the lender tell you which company supplied the information. You have a right to a free copy of your report from that company so long as you request it within 30 days of the credit denial.

Pre-qualification, based on numbers you supply to a lender, is an indication of the range of what you can afford. Getting pre-qualified is neither a commitment to loan you money, nor is it an obligation by you to borrow from a particular lender.

Lenders typically use one of two guidelines when evaluating a loan request. Most lenders will limit the loan amount to a percentage of your gross monthly income or to a multiple of your annual household income.

As a general rule, individuals or families can usually handle a housing payment that amounts to 25- to-28 percent of their gross monthly income. Following this guideline, if gross monthly income is $3,500, monthly payments (inclusive of taxes and insurance) in the range of $875 to $980 are considered reasonable. Some lenders use an alternate ratio that allows 36 percent of total monthly income for housing expenses and other long-term debts, such as car loans, credit card payments and obligations for child support. (Monthly living expenses for utilities, groceries, entertainment, medical and auto insurance are not calculated in this formula.)

Another guideline, based on gross annual household income, assumes most borrowers can afford up to 2.5 times their gross annual income. This means a borrower with total income of $40,000 may qualify for a loan of up to $100,000.

Whether using a "multiplier method" or a "percentage method," prospective home buyers should allow for closing costs and moving expenses. (Closing costs are the fees and taxes that are paid when the deed is transferred. These usually amount to 5-to-10 percent of the mortgage amount. Moving expenses include costs for movers, as well as "move-in" deposits for utilities and other "necessities").

Many lenders provide work sheets and charts to help you calculate your borrowing power, along tables so you can compare payments at different rates and for different loan periods. (Some real estate brokers and financial institutions even have "mortgage calculators" on their Internet site to help you determine what you can afford.)

Your borrowing power can be increased with favorable interest rates and terms. With lower rates, you can borrow more money. Different types of loans and the duration of the payback period will influence the interest rate that will be applied to your mortgage. In general, the shorter the term of the loan, the lower the interest rate.

There are dozens of different types of mortgage programs from a wide variety of financial institutions, including mortgage companies, saving and loan associations, commercial banks and credit unions. Prudent consumers will find it pays to compare options to find the right loan for their particular situation.

THE MULTIPLE LISTING SERVICE (MLS)

A multiple listing service is a system for collecting and organizing information on available properties in a given area. Such information is shared by members who agree to cooperate with each other and to abide by certain operating procedures. This service enables buyers to have a vast selection of homes to consider, while sellers benefit from having their property exposed to a large network of real estate professionals and their clients.

Most brokers in the Seattle-Everett-Tacoma area are members of the Northwest Multiple Listing Service (NWMLS), formerly called Puget Sound Multiple Listing Association (PSMLA). Approximately 31,000 licensed brokers and agents currently belong to this independent association.

In addition to its primary function of maintaining a comprehensive database on thousands of properties, NWMLS produces various legal forms, publications and reports for its members. The "multiple" also maintains an electronic keybox system, which allows access to listings by authorized agents. Other benefits include an array of computerized services to assist with property searches, financial analysis, communications between offices, and access to data on property taxes, local schools and other information. Ongoing training and technical support are also available to NWMLS brokers and agents.