A leaky or blocked gutter can divert damaging water into your home's walls.

Whether you live in rainy Oregon or snowy Vermont, winters are hard on homes. With spring winds and showers and a long hot summer coming, now is the time to perform a thorough spring maintenance to keep your home safe, beautiful, and at its highest possible value.

As you go through your regular maintenance routine, be sure to include checks of these five trouble areas.

Gutters

Debris-choked gutters are a leading cause of water damage. Even a single clog of leaves can redirect water out of gutters and into your home’s walls. Be sure to follow proper safety precautions when inspecting your gutters, and when you’re in doubt, hire a professional.

Plumbing

Cold winters can be brutal on pipes. Get into the basement and check your plumbing hill washing the dishes, watering the lawn, or taking a shower–any time you’re pushing a large amount of water for an extended time. Look for leaks, drips, or even surface moisture. A small leak is an easy fix that will save on your water bill, but if a leak grows and floods, pipe repair will be the least of your problems. Recheck the pipes an hour later for signs of dampness and slow leaks.

Foundation

Runoff and freezing temperatures can cause cracks in your foundation. Be sure to seal these cracks as you find them, and consult a pro if you have any questions about hidden damage or any impact on your home’s structural integrity. Pay special attention to any areas where water might pool against the foundation, often caused by lost soil.

Air Conditioning / Ventilation

Your AC unit will get a workout over the summer, so be sure your vents are free of debris and your filters are new. If you use window-mounted units, ensure that window seals are tight and wall-mounted supports are securely fastened.

Seals

Heat and cold are both hard on rubber seals and caulking. Replacing seals around your doors and windows can pay for itself in just a month and requires very little effort, so there’s no reason to avoid it.

Expect substantial repairs with any foreclosure purchase.

If you’ve decided that foreclosures are right for you, here are some simple tips to ensure that you get the right deal and don’t risk over-leveraging yourself.

Work out a budget

Map out your current financial assets and liabilities. Factor in recreation, savings, and other planned expenses, plus enough of a cushion to give you some security. The remainder is your available budget. Remember that even after the sale, a foreclosure will cost money before making it. You should expect repairs before the home is livable, followed by a period of vacancy while you shop the home to buyers or renters.

Line up financing

Foreclosures move fast–very fast. In some cases, a few minutes can make the difference between buying the house of your dreams. Now that you know what you can spend, you need to have a bank’s permission to spend it. Cash is king, but pre-approved financing is pretty close, and just the process of applying for financing will provide a good gut check of your budget estimates from step 1.

Bring an expert

The buying process for many foreclosed homes–particularly those being auctioned–leaves little time for individual inspection. Bring a licensed inspector with foreclosure experience. There’s no replacement for a roper inspection, but expert eyes can spot the biggest, most expensive issues up front and help you incorporate that feedback into your bid. Be sure to keep a running tally of repair costs and deduct that amount from your budget. You don’t want to bite off too much.

Stay focused

Once bidding begins, it’s easy to lose your head. The market is full of foreclosures. If you miss this one, you’ll get the next. Or one of the dozens after that. Stick to a sane bid in a range you can afford and eventually, you’ll find the right house at the right price.

1. Research Early and Often

Shop around.  Too many homebuyers treat insurance as an afterthought and go with the first policy they find.  They might get lucky, but chances are, they’re paying too much or covering too little.  Insurance is critical to your long-term happiness, and it can be a substantial part of your monthly home-related expenses.  The more research you do, the greater the odds that you’ll find a policy that fits your needs and your wallet.

When you’re shopping for policies, be sure to start with your existing car, boat, or other vehicle insurance provider.  The insurance business is competitive, and most insurers will offer package deals, particulularly if you’re a long-standing customer.  Be sure to ask about “longevity discounts” when you speak with your agent.  As an added bonus, you’ll also be able to combine your bills to reduce bookkeeping.

Raising your deductible is a great way to lower your monthly payment.  It reduces risk to the insurer, shows them you’re not going to pester them with frivolous claims, and can save a conscientious homeowner a lot of money in the long run.  Just be sure that you can absorb the costs.  An extra $2000 of expenses over the long haul may seem insignificant, but you rarely need insurance at good times.  Will you be able to cover the deductible 2 days before payday, the week your daughter’s tuition is due?  If not, choose the higher premium for now, and adjust your deductible when you can afford it.

All assets depreciate over time, so be aware of the difference between “Actual Cash Value” (ACV) and “Replacement Costs.”  Your TV might only sell for $200 on Craigslist, but but buying a new one might cost $2000.  Policies will make explicit reference to ACV and Replacement Costs, so be aware of what you’re signing, and get the coverage you need.

Your credit was good enough to get a mortgage.  Congratulations, but you’re not done.  Many insurers will factor your credit score into your rate, so be sure to check your scores frequently and address any blemishes.

Before you apply for insurance, ensure that your home is as safe as possible.  Install fire extinguishes, deadbolts, outdoor lighting, smoke detectors, burglar alarms, and fire-retardent plants.  You’ll be safer and your premiums will drop.

Florida has hurricanes.  Oklahoma has tornados.  California has earthquakes.  Every homeowners policy has exemptions, usually based on location.  If you’re building or buying a home in flood country, you’ll probably need to pick up special flood insurance.  Ask your insurer what the policy doesn’t cover when you buy.  Odds are, he or she will be happy to sell you additional coverage.

But maybe you’re still on the fence.

There’s no denying the numbers. It is a great time to buy, if buying is right for you. To decide if you should be in the market, ask yourself these questions:

1. How long will I live here?

Length of stay is the single most important consideration in the buy-versus-rent debate. If you plan on spending the rest of your life in the same home, buy now. If you want to flip it for a profit in 12 to 24 months, keep renting. Most of us are somewhere in the middle. The common wisdom used to be a 5-year cutoff—anything longer means buy, and anything shorter means rent. In most cases, that still holds true, but market variations can nudge the numbers a bit.

The New York Times has an excellent Buy-Rent Calculator that lets you customize home appreciation, rent increases, property taxes, and other variables, but the message is clear. Short-timers beware.

2. What are my family plans?

Once upon a time, young couples purchased small homes, used their equity to upgrade when the family grew, and cashed out for a smaller place once the kids left the nest. While this remains a logical progression, executing on that strategy is getting harder. Couples are marrying later, which can shorten the time between buying that starter home and needing more space. In such a buyer’s market, you may find it hard to recoup your investment in just a few years, limiting your upgrade options.

Here’s a real-world example. Two of my friends married in their mid-30s. They bought a charming little home and made room for a baby that came along 18 months later. As they started to near 40, they decided to have another child, and all of a sudden, their cozy love nest was crowded. Between the mortgage payments and their children, they had almost nothing in savings, and wound up settling for a larger house that was 30 miles farther from work. When I asked them about it, they said “We love our house, but if we had to do it over again, we would have rented and saved for a few years so we could have the new house in the old neighborhood.”

So take a lesson from my friends. If you’re going to buy, buy the house you know you’ll need.

3. Am I ready for the “extras?”

Those online calculators do a good job of estimating mortgage payments and taxes, but they won’t factor in septic system repairs, water bills, gutter cleaning, or any of the other expenses that your landlord has absorbed all these years. These can easily add up to an extra several hundred dollars per month, just for ongoing maintenance, and system failures can be several thousand more. Costs vary by region—Seattle residents won’t need to water your lawn much, but their heating bills will be higher than Phoenix—so ask your neighbors to get a true picture of what to expect.

4. What are my investment plans?

That leads us to savings.

Let’s assume you can pay $2000 a month for housing. In some markets, you could spend that $2000 on a mortgage, taxes, and insurance, or you could rent a similar place for $1400 and save $600 every month. If that sounds like you, renting while you save could make sense. If, on the other hand, you’re going to use that extra $600 to rent the kind of place you “could never afford to buy,” then you’re right—you’ll never be able to afford it, because you’re just tossing money out the window.

Which person are you? Be honest here. If you’re more like the second person, do yourself a favor and consider buying. The equity you build in a purchased home over the long term will probably be your biggest investment over the course of your life. Renting only makes sense if you’re saving and investing the extra.

The good news is that whether you’re renting or buying, a licensed REALTOR(®) can help you find the property that’s right for you.

Rental property deductions can make this trip a bit less grim.

It’s tax time again, and we could all use an extra deduction. The tax advantages of owning a primary residence are well-documented, but there’s also an upside to renting properties. Here’s an overview of the types of tax benefits landlords can expect.

It’s important to note that this overview is not considered tax or investing advice. If any of this interests you, please contact a tax specialist for a consultation. Your REALTOR© will be able to suggest one.

Deductions

While the tax implications of renting a home are quite different than those for a primary residence, there are plenty of deductions to be found. Maintenance costs, lost rental costs from vacancies, marketing costs (including fees paid to brokerages, if you use them), and other business-related expenses such as travel and document processing can usually be written off to some degree. Home improvements can also qualify as deductions, though most will have to be realized over time as depreciation.

Depreciation

Depreciation is a tricky term. Even if your property value is increasing and you’re making home improvements to a rental property, you can probably claim annual depreciation. To get the specifics on how a property you’re considering might depreciate, you’ll need to check with a professional. To get a fair estimate, however, divide the total value of your house (including improvements) by 31. the result is the annual depreciation you can take as a loss.

Active or Passive?

Not all landlords are equal in the eyes of the law. Active landlords, as the name might suggest, are intimately and actively involved in managing their properties, performing maintenance, interviewing prospective renters, and managing tenant concerns. Passive landlords generally just receive a check, hiring an agency or other third party to manage a property.

Determining which classification fits is sometimes difficult, and if you’re unsure, please consult a professional. The tax consequences are significant. For example, active landlords may be able to deduct losses from annual income, while passive landlords might have to wait until the home is sold to offset any gains.

Adjustable-rate mortgages (ARMs) earned a bad reputation leading up to the housing bust, and with good reason, but that was largely the fault of predatory lenders who oversold houses to underqualified buyers with artificially low initial payments.  Still, ARMs are a bit of a gamble, and they are absolutely the wrong tool for homeowners trying to squeeze into the most house they can afford.

Interest rates are extremely low right now, so you shouldn’t expect an adjustable rate to go anywhere but up.  For this reasons, most homebuyers will be more comfortable with fixed-rate mortgages that provide a predictable payment future–particularly for their primary residence.  On the other hand, quick turnarounds can be  different story.  If you’re an experienced real estate investor looking to flip a house quickly, an ARM could save you some money while you hold the house.  Smart Money Magazine has an excellent calculator on their Web site that helps explain the break points, but be warned–a calculator can’t predict market fluctuations.  If you choose an ARM, be sure to work with a mortgage company you trust, and have a backup plan if the house doesn’t sell as quickly as you’d like.

If you've been waiting to buy, 2012 might be your time.

Home values took a universal dive in 2008, but for most markets, it looks like the worst is behind us. While certain metropolitan areas continued to bleed in 2011 (some cities in Southern California saw a dip of more than 20 percent from 2010), others stabilized, and quite a few saw modest improvements. The national unemployment rate fell to 8.3 percent in January, interest rates remain low, market fluctuations have smoothed, and we may be turning a corner toward a slow-but-persistent recovery.

Still, even those declining unemployment numbers are near historical highs, and the financial crisis in Europe continues to loom, and no one can ever call the market bottom with complete accuracy. So if you’ve been on the fence, will 2012 be your year to buy?

If you’re a first-time homebuyer with money in the bank for a down payment, you may never see a market like this again. Home prices are low. Yes, they might go lower in the short term, but with prices starting an apparent upswing in many markets, it’s a risk many buyers are willing to take. If you’re looking for a quick flip, you might want to look in a different industry. The days of rapid profits in real estate are largely behind us. But if you plan to stay in a primary residence for many years, conditions look rosy. In addition to low interest rates, today’s market offers unparalleled choice, from unoccupied new construction to foreclosures or existing homes. An inventory glut is weighing down prices, so if you don’t have to sell a house to buy one, this could be your time. Talk with a knowledgable REALTOR© to get more information on your specific market.

If you’re looking to move from your current home, the question is a bit more complicated. The house you want is inexpensive, but so is the house you’re looking to sell. If your home category has retained its value better than they type of home you’re considering buying, you might be in a good position to make a move. Likewise, if all else is equal, you can save money by buying when all prices are lowered.

If nether of these apply, and you have some savings on hand, consider renting out your current home while you buy a new one. If you can cover most of your mortgage and manage to pay for your new home, you can build equity in two properties while waiting for the market to bring you a payday.

Electronic budgeting software will remove the grunt work and show you where your money goes.

Your first home purchase is exciting, but it can also be stressful. Here are some tips to limit the trauma and help you find the home of your dreams the first time around.

1. Set your budget

The most important step in selecting a home is knowing how much you can spend. If you already use an electronic budgeting system, you’re ahead of the game. If not, track your expenses for the past several months to a year. Try to quantify the “gray areas” of cash withdrawals that disappear on small purchases. Now add up your current rent and other related expenses. If you’ve been saving money toward your down payment, note that, as well. Finally, ask yourself where you can tighten your belt with your existing discretionary purchases. This is the maximum amount you could pay per month.

Now ask yourself if this is reasonable, given your current savings and possible expenses. Only you know the answer to that. When you’ve arrived at a comfortable number, write it down, and save your calculations. You’ll take this to the bank when you apply for loan pre-approval. For now, you have an estimated payment you can use while shopping online.

2. Set your Criteria

A home is the biggest purchase you’ll probably ever make. Stay focused and don’t let emotion guide you. If you have one child and no plans for more, four bedrooms are probably a waste. Write down a list of must-haves, nice-to-haves, and can’t haves before you start visiting homes. You’ll save time, help your agent work more productively, and keep yourself from getting carried away—into the wrong house.

Important criteria include:

• Age of house
• Number of bedrooms and bathrooms
• Size of lot / yard
• School district requirements
• Type of street (Are busy streets OK, or do you want a cul de sac? Do you need to be near a bus or light rail line?)
• Type of home (Single-story? Mutli-level? Are there any dominant architectural styles in your area that you refuse to buy?)
• Central heating and cooling
• Expensive additions, such as in-ground pools

3. Make a list of Homes

After you’ve made this list, search online and find several representative homes. If you have time and you’re fairly local, drive by a few of them to get a feel for the neighborhoods. Write down your impressions. This will help you understand home much of a home’s description is fact versus fluff, and give your real estate agent a good idea of your likes and dislikes.

4. Find a Realtor®

Most home buyers select a licensed Realtor® to represent them, and they are almost always happy they did. Realtors® are real estate agents who subscribe to a strict code of ethics and are acknowledged experts in the field. A Realtor® knows your local market, and can help you through every step of the home buying process, from finding your dream home to negotiating the best possible terms, explaining everything along the way.

5. Bring a Camera

Your Realtor® will take you on a number of open houses, and your opinions can be lost in the blur. To keep things straight, bring a digital camera on your trips. Take a picture of the street number of each property, then photograph each room during your walk-through. Photograph a house even if you decide it’s wrong for you—there may be furnishings, construction tips, or other features you notice later that could come in handy when you find the right home.

Don't leave affordability to chance and emotion.

You’ve found the home of your dreams. It’s expensive, but it’s beautiful, it has room to grow, and you can just squeak by if you’re careful–maybe.

This is a common situation, and all too frequently, it ends poorly–just look at the number of foreclosures on the market. Buying a home is an emotionally loaded process. Deciding how much home you can afford shouldn’t be.

As a general rule of thumb, a home that costs more than three times your gross income is too much of a stretch. Twice to 2.5 times your gross income is generally a safer bet, though that may be difficult to find in high-priced areas like California or the northeast.

To get a more specific estimate, you’ll need to include credit score, interest rate, closing costs, and taxes into your calculations, and these vary by location, and even day of the week. There are a number of mortgage calculators online, and they can be a great resource for examining different scenarios. To examine your situation in more detail, visit BankRate or another calculator, and input today’ states. If you’re unsure of which loan type to choose, stick with a 30-year fixed rate.

Once you arrive at a monthly payment, compare it to your current rent or mortgage payment. At this point, honesty is critical. Are you able to make your current payments without any problems? Are you falling behind? Banking extra each month? Determine a realistic payment and work backward. If you’re currently renting, you may need to include new types of payments like repairs, but the tax benefits of homeownership should allow you to spend roughly 30 percent more while maintaining the same standard of living–provided you can wait until the end of the year to see your return.

Utilities, student loans, credit card payments, and other monthly debt will also factor into your ability to pay. Lenders will generally cap total monthly debt payments at 41 percent of your gross income, so be sure to pay down those expensive credit cards as much as possible before yo start your search.

Obama's new housing proposal extends refinancing to underwater mortgage holders.

On Wednesday, February 1, President Obama presented a series of housing proposals. The primary proposal aimed at making mortgage payments more affordable for existing homeowners–particularly those struggling with underwater mortgages. It’s still a long way from approval, but if the package passes, how will it affect you?

If you’re underwater, have good credit, and are currently paying an interest rate over the current rate, you’re in good shape. The program will extend refinancing at today’s rates to almost all homeowners, including those with negative equity.

As with any law, there are guidelines and standards. These refinance packages are available only to homeowners with a FICO score of at least 580, apply only to primary-residence, single-family homes, and the size of your loan must be within FHA conforming loan limits. Still, that covers the majority of the country’s existing home mortgages, and the government expects an average savings of $3000 per year, per refi.

The proposal also includes a plan to convert foreclosed properties into rentals to reduce downward pressure on housing prices. You can read the full text of the proposal here.