I s su e 12 , Vo lu me 4 9 / De c e m be r 9 , 2 011Five Common Remodeling Mistakes The Week Ahead -> The “Keys”Tim McLaughlin - Final FOMC Meeting of the Year and Inflation Data Whether you are on the verge of purchasing a home that youlove but that you know you will most likely want to remodel a bit, oryou want to make some changes to that existing home, here are Date Economic Release Prediction Lastthe five most common remodeling mistakes: 12/12 Monthly Budget Statement -$140.0B -$150.4BSetting an unrealistic budget 12/13 NFIB Small Business Opt - 90.2Most homeowners underestimate their budget by at least 25percent. As you can imagine, not having enough money to 12/13 Advanced Retail Sales 0.6% 0.5%complete a project can not only stress you out, but can also forceyou to live with a half-finished project for a lot longer than you 12/13 less Autos 0.5% 0.6%expected. Most experts suggest calculating your budget and thenincreasing it by 20 percent for safety (and sanity) sake. 12/13 less Autos and Gas 0.58% 0.7%“Keeping up with the Joneses” 12/13 IBD/TIPP Eco Optimism 42.0 40.6One of the biggest mistakes I’ve read about is remodeling or 12/13 JOLT Job Openings - 3354redesigning a space for what’s most popular at this minute. Themore trendy the project, the more likely it will feel out-of-date in a 12/13 FOMC Rate Decision 0.25% 0.25%few years. That’s not to say you shouldn’t update your home tomatch your style and interests, but if you’re looking to sell in the 12/14 MBA Mortgage Applications - 12.8%near future, do not get hung up on trends. 12/14 Import Price Index (MoM) 1.0% -0.6%Over-improving 12/14 Import Price Index (YoY) - 11.0%A lot of the time, homeowners invest in remodeling their homehoping that when they do sell, they will be able to maximize their 12/15 PPI (MoM) 0.2% -0.3%ROI. However, they fail to consider the quality and state of thehomes in their neighborhood. Say you invest in top-of-the-line 12/15 ex Food/Energy 0.2% 0.0%products, but the rest of the homes in the neighborhood are modestand average, then you run the risk of having an even more difficult 12/15 PPI (YoY) 5.9% 5.9%time selling the home or getting the money back. 12/15 ex Food/Energy 2.8% 2.8%Doing it Yourself 12/15 Current Account Balance -$107.8B -$118.0BIn order to keep budgets low or reduce the costs of some projects,many homeowners think they can tackle big projects themselves. 12/15 Empire Manufacturing 2.50 0.61This is usually a HUGE mistake. Unless you have the right tools,training and connections, you could actually cause more problems 12/15 Initial Jobless Claims 390K 381Kdown the line, including doubling your budget when you have to calla professional to come in and fix your mistakes. 12/15 Continuing Claims - 3583KFinancing 12/15 Philly Fed Survey 5.0 3.6Whether this is a new home that you want to renovate upon closing 12/16 CPI (MoM) 0.1% -0.1%or an existing home, the biggest mistake you can make is not usingWeichert Financial Services for your funding needs. On a refinance, 12/16 ex Food/Energy 0.1% 0.1%we can offer you historically low rates on a cash out refinance tofund the initiative. On a purchase, talk to your knowledgeable 12/16 CPI (YoY) 3.5% 3.5%Weichert Financial Gold Services Manager regarding putting lessdown and/or financing the closing costs to have more liquid assets 12/16 ex Food/Energy 2.1% 2.1%for the renovations. Ask us how…we can help! Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID: 2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC, ID, MS, NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229. Licensed by the New Hampshire Banking Department, License # 8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services arranges loans with third-party providers. Equal Housing Lender.