What Is a Building Permit?

 Nov 09, 2020

LaTasha Beal

Chances are, you’ve at least heard of building permits even if you haven’t applied for one yourself. Going by their name alone, you can probably guess the general gist of what these permits are used for. You might be surprised to find out that a lot of homeowners don’t really know that much about building permits, especially when it comes to details such as when you need to apply for one. It can actually get kind of confusing at times, so here’s a rundown of the basics of building permits so you won’t be left scratching your head the next time you’re considering a new project around the house.

What Are Building Permits?

As the name implies, a building permit is a written permission granted by a municipality or other governing body that allows you to build something within the body’s jurisdiction. That’s a fancy way of saying that the city or other area you live in gave you permission to build within the city or county limits. This helps to ensure that the work you’re doing is safe and falls within the guidelines established by local building and construction codes. Since these codes can be different depending on the location where you live, building permits help to ensure that everything complies with all local regulations.

Applying for a Permit

In most areas, applying for a building permit is a pretty straightforward process. You fill out an application, prepare a site plan that details what you’ll be building, and schedule an appointment to have the plan approved. Once your permit is approved, you may need to schedule inspections of the works site as well to ensure that things are following the plan that was laid out in your application. Bear in mind that the specific process and any fees or other costs associated with the application process will vary depending on local zoning rules and other legal specifics of the area where you live.

Building Permit Changes

Once you have a building permit, you’re free to go ahead with your building project. What happens if your plans change during the building process, though? The answer depends on the nature of your change. Depending on the jurisdiction you’re in, you may be free to continue your project if the changes are relatively minor or still in the spirit of the original permit. If there are major deviations from what you specified in your original application, however, you’ll almost certainly need to either have your permit amended or apply for a new permit to cover the project as it now stands. Bear in mind that this depends heavily on the jurisdiction that issues the permit, so be sure to check and see how that affects your permit before making major changes to your project.

Do You Need a Permit?

One bit of good news is that not all construction projects require you to apply for a building permit. While this depends largely on the specifics of local building codes, you typically won’t need a building permit for small projects or projects that don’t make structural changes to your home. And you may not need one for some significant modifications, such as replacing plumbing or electrical wiring. As an example, you’re likely not going to need a building permit to paint your house or install a small fence around your backyard, though you may still need to clear those changes with your homeowner’s association if you’re in one. However, should you decide to add walls, convert your garage to a living room, or build a new exterior building, you could very well need a permit depending on where you live.

Finding a Contractor to Help

If you’re frustrated by the process of getting a building permit, there’s some good news: If you bring on a contractor to get the job done, they’ll likely take care of all necessary permits as well. HomeKeepr can connect you with the perfect contractor to both do the work and handle the paperwork, based on real recommendations from people you trust. Sign up for a free account today to get started.

Buying Frenzy Heats Up in Second-Home Market

Buying Frenzy Heats Up in Second-Home Market: More than two-thirds of vacation properties sold in less than a month in September, NAR survey shows. From the virtual 2020 REALTORS® Conference & Expo, Nov. 2-18

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

 

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

As the current forbearance mortgage relief options come to an end, many are wondering if we’ll face a foreclosure crisis next year. This is understandable, especially for those who remember the housing crisis that began in 2008. The reality is, plans have been put in place through forbearance to ensure history doesn’t repeat itself.

This year, homeowners are able to request 180 days of mortgage relief through forbearance. Upon expiration of that timeframe, they’re also entitled to request 180 additional days, bringing the total to 360 days of deferred payment eligibility. As forbearance expires, homeowners should stay in touch with their lender, because creating a plan for the deferred payments is a critical next step to avoiding foreclosure. There are multiple options for homeowners to pursue at this point, and with the right planning and communication with the lender, foreclosure doesn’t have to be one of them.

Many homeowners are concerned that they’ll have to pay the deferred payments back in a lump sum payment at the end of forbearance. Thankfully, that’s not the case. Fannie Mae explains:

“You don’t have to repay the forbearance amount all at once upon completion of your forbearance plan…Here’s the important thing to remember: If you receive a forbearance plan, you will have options when it comes to repaying the missed amount. You don’t have to pay the forbearance amount at once unless you are able to do so.”

When looking at the percentage of people in forbearance, we can also see that this number has been decreasing steadily throughout the year. Fewer people than initially expected are still in forbearance, so the number of homeowners who will need to work out alternative payment options is declining (See graph below):This means there are fewer and fewer homeowners at risk of foreclosure, and many who initially applied for forbearance didn’t end up needing it. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explains:

"Nearly two-thirds of borrowers who exited forbearance remained current on their payments, repaid their forborne payments, or moved into a payment deferral plan. All of these borrowers have been able to resume - or continue - their pre-pandemic monthly payments."

For those who are still in forbearance and unable to make their payments, foreclosure isn’t the only option left. In their Homeowner Equity Insights Report, CoreLogic indicates:

“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”

Many homeowners have enough equity in their homes today to be able to sell their houses instead of foreclosing. Selling and protecting the overall financial investment may be a very solid option for many homeowners. As Ivy Zelman, Founder of Zelman & Associates, mentioned in a recent podcast:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

Bottom Line

If you’re currently in forbearance or think you should be because you’re concerned about being able to make your mortgage payments, reach out to your lender to discuss your options and next steps. Having a trusted and knowledgeable professional on your side to guide you is essential in this process and might be the driving factor that helps you stay in your home.

Hot Flooring Trends for Homeowners

 Nov 02, 2020

LaTasha Beal

Very few things in a home can make such a difference to both form and function as new floors. Flooring reflects not only your style and personality, but also your lifestyle. The right floor can make it easier to keep your home cleaner, hide imperfections, and set the mood for a cozy living space. And although flooring has generally been an “anything goes” environment for a while in home design, there are certain trends that have been a lot more popular than others. Here’s a brief round-up that should make your flooring search a little easier.

Hard Flooring Options

Hard flooring is any kind of flooring with a solid, and generally non-porous, surface. It’s a pretty big group of materials, really. Hard flooring offers many benefits. The materials are more resilient to regular use, so wear life is longer. And cleaning is easier because there’s no fibers to capture things like pet hair, loose skin cells, dirt, and microbes. Some of this year’s most popular hard flooring options include:

• Vinyl Plank. Vinyl plank is designed much like laminate flooring, with a tongue and groove locking system that creates a watertight seal when properly installed. The difference between vinyl plank and laminate flooring, however, is that vinyl plank is made from solid vinyl, rather than being several layers of different materials sandwiched together. It’s a great choice for wet areas like kitchens and bathrooms, and for households with pets and children. As a bonus, vinyl plank is available in a huge range of patterns, from synthetic marble to the super hot high variation wood-like floor patterns. There’s a vinyl plank product for basically any situation.
• Wood-Look Porcelain Tile. If you want something that will last longer than vinyl plank, but still look like wood, wood-look porcelain tiles are a great option. They look like wood planks, but are made from extremely durable porcelain. It’s an option that’s very permanent and will last for many, many years to come. They can also be purchased in the high variation wood patterns, though the effect is less obvious than with vinyl plank since there is grout between the tiles.
• Terrazzo. This might be the coolest flooring you’ve never heard of. Although it’s popular, many people don’t know the term for it. Terrazzo is that tile flooring that’s made from concrete with lots of inclusions like glass, shells, or other interesting bits mixed in. It looks great in mid-century modern homes, or those decorated in the style. And since concrete is extremely durable, it will last and last.
• Reclaimed Wood. There are lots of places you can go to buy reclaimed wood, sometimes referred to as “architectural salvage.” When a building is being torn down, firms can sometimes acquire the materials, especially if the building is historic. You can also talk to individuals you know who are looking to commit crimes like removing all the original hardwoods from a home they’re remodeling, and pick up the flooring for cheap. It can be labor intensive to install reclaimed wood floors, but you’ll end up with a totally unique look and keep building materials out of the landfill, so it’s kind of a double win.

What About Carpet?

Homeowners have run hot and cold about carpet across the generations. Sometimes they’re in, sometimes they’re out, and usually there are some people who are still really into them even when their popularity is waning. Right now the trend in carpets is to opt for carpeting in limited spots, like using carpet runners for stairs. Carpet tiles are seeing some popularity, especially since they come in a ton of fun colors and tend to have a very low nap, making them easy to keep clean. If you want more carpet, look for large area rugs or keep your carpet in low-use rooms like bedrooms. “Maximalism” is making a big comeback, encouraging big patterns and colors with big personalities. Clashing is the new matching, it would seem.

How About a Flooring Installer?

Once you know what kind of flooring you’d prefer, you’ll need to find someone to install it. Some flooring shops have an in-house flooring installer, but you can’t always rely on these experts to be as expert as you’d like. That’s where HomeKeepr comes in where you’ll have a list of flooring experts who can help you. Not every flooring installer installs every kind of flooring, so be sure to ask them about their areas of expertise before you make your final decision.

NAR Releases 2021 Statistical & Forecast News Release Schedule

NAR Releases 2021 Statistical & Forecast News Release Schedule: The time for all news releases in this schedule will be 10:00 a.m. Eastern Time.

Pending Home Sales Falter 2.2% in September

Pending Home Sales Falter 2.2% in September: Pending home sales experienced a minor decline in September after four consecutive months of contract activity growth. However, all four major U.S. regions recorded notable year-over-year increases.

Buyer Demand Strong Even as Pending Home Sales Cool Slightly

Buyer Demand Strong Even as Pending Home Sales Cool Slightly: “With persistent low mortgage rates and some degree of continuing jobs recovery, more contract signings are expected in the near future,” says NAR’s chief economist.