Victor Varma | Blog

Six documents every homeowner should keep

Posted on November 18, 2016October 14, 2016 by Victor Varma

As a homeowner, you may find yourself with a lot of paperwork. While you don’t have to keep all of it, it is a good idea to keep certain files for tax or mortgage purposes. There are several documents that you should keep as long as you own a property and some after you sell the property. Those include:

1. House deed: A house deed is a document that transfers ownership of a house from one party to another. Keep this for as long as you own a property, to have proof that you own it.

2. Closing documents: Keep documents related to closing the sale of your new home or property as long as you own the property, and three years after the sale.

3. Receipts for home improvements: Keep these for three years after you sell a property. It will help to show an increase in home value help to justify a sales price during the sales process, and can be useful when it comes to your property taxes.

4. Mortgage payoff statements: Keep mortgage payoff statements indefinitely. These are documents from your lender that both parties sign when you’ve successfully paid off your mortgage. Keeping them indefinitely offers you a defense if your lender tries to come back to you later and say that you still owe money on your mortgage.

5. Private or primary mortgage insurance statements and cancelled checks: Keep these for three years after the tax year in which you’ve claimed this deduction. This payment is part of your monthly mortgage payment.

6. Property tax payment: Keep your tax bill and statements showing payment for three years after you’ve made the payment.

The minimum time to keep important household documents is three years after payment is made, although it doesn’t hurt to keep many of these for longer. This is because the IRS can audit individuals for specific years for up to three years after the tax year (they can audit your 2015 tax return until the end of 2018.)

If you don’t keep these documents, you could find it difficult to state your case or provide proof during an audit or dispute related to your home.

Thanksgiving tradition: Cover table

Posted on November 15, 2016October 14, 2016 by Victor Varma

According to thekitchn.com, one family covers the Thanksgiving table with butcher paper and then gives everyone a marker.

They can doodle, and give thanks, and draw pictures throughout dinner.

The creation then becomes a banner to enjoy for the day.

If you don’t want to substitute butcher paper for your nice tablecloth, or if you would prefer conversation at dinner, consider hanging a large thankfulness paper on the wall or door. Attach markers so everyone can give their autograph or opinion. Or drawing. Or thanks.

If you want, you can clip autographs and notes off the banner and scrapbook them.

Another idea is to give the banner to the person who lives farthest away, a college student or family friend.

Millennials fall for online scams, study says

Posted on November 10, 2016November 10, 2016 by Victor Varma

The most tech-savvy group in the world are the most likely to have lost money in scams, according to the Better Business Bureau.

Millennials fell for scams for online purchases, employment, and debt collection.

In fact, this 25 to 34-year old group was more likely to fall for online scams than 75-year-olds. About 30 percent of the younger group surveyed by the BBB admitted to losing money in scams. But only 5 percent of the older group lost money.

No flu for you!

Posted on November 7, 2016October 14, 2016 by Victor Varma

Flu season is upon us and one shot could save you two weeks of suffering, says the Centers for Disease Control (CDC).

This is recommended for everyone over the age of six months, except for those who may be adversely affected because of a weakened immune system.

There are a variety of vaccine options available to help individuals avoid the virus, or to lessen its impact, and they come in multiple forms – typically a shot, or a nasal spray.

This year, the CDC says that the nasal spray vaccine should not be used during the 2016-2017 flu season.

The CDC recommends the inactivated influenza vaccine (IIV) or the recombinant influenza vaccine (RIV). There are vaccines with three components (a trivalent shot) or four components (a quadrivalent shot). No matter which you choose, it usually takes about two weeks for the vaccination to fully take effect.

If you’re interested in getting a flu shot, there are a variety of places where you can go to get that vaccination, including your doctor’s office. A local health clinic, a pharmacy or even a drive-through flu shot clinic, if you can find one, are all places where you can get a flu shot.

If you’re going to get a flu shot, now is the time to do it – too early and you may suffer later on, from waning immunity around the time that flu peaks next January or February.

What’s the skinny on using a title company?

Posted on November 3, 2016October 14, 2016 by Victor Varma

We take so much on face value.

That guy whose house you are buying, for example. We assume if he is selling the house, then he owns it. He does own it. Right?

What if he’s really a renter posing as the owner? What if his ex-wife is still a co-owner? Well, if so the seller doesn’t have a clear title, and that means you won’t either.

Happily, for a plethora of problems that can occur with a process as complicated as buying a home, the buyer has insurance. It’s called title insurance, and it is one of the most important safeguards of your money.

If you want to buy a home, you have to sign a contract with the seller, a mortgage contract with your lender, another contract with your insurer and a few other related documents. Not only is this process time-consuming, but it can also cause sleepless nights fraught with worries.

Signed contracts by two parties are legally binding agreements. They cannot be broken without costly consequences and in something as significant as a home, you want everything to go right.

Lots of problems can creep up in a property over a dozen or more years. There can be unpaid taxes. Or a problematic easement that prohibits your building a fence. There can be disputes over a property line. What if the city has underground utilities running the entire length of the property that the seller didn’t reveal in the contract, and you don’t discover them until you’re excavating for a swimming pool?

Professional real estate agents and contract law attorneys work with property buyers and sellers every day. They can interpret the documents, ask the right questions, add or delete anything, not in your best interest, and recommend a title company to launch a thorough search that secures you a clear title. In fact, your mortgage lender requires the purchase of title insurance, or it won’t issue the funds you need to close the deal.

The title company’s main mission is to declare a title defect-free; otherwise, it won’t sell you the required insurance. The search involves combing through public records for any matter concerning the house you want, including past deeds, wills, trusts, divorce decrees, bankruptcy filings, court judgments, outstanding liens and tax records.

Maybe the seller inherited the house under the terms of a will, but it was out-of-date, and a more recent will left the house to his cousin. Title insurance protects both your interests and your lender’s.

Title policy insurance is the best insurance policy you can ever buy. It is a permanent assurance that your ownership and use will be defended promptly against claims, at no cost to you, whether or not the claim is valid.

Every state and locality have a different regulatory rules that can affect charges. But you pay a one-time premium for coverage that lasts as long as you or your heirs own your property. Title insurance is one of the least expensive forms of insurance.

How to handle two driving emergencies

Posted on October 28, 2016September 12, 2016 by Victor Varma

How much time do you spend in your car?

Most Americans, drive an average of 29.2 miles a day, with trip length of 46 minutes per trip, as the AAA Foundation For Traffic Safety’s survey of 2015 revealed. That’s more than 10,650 miles per year, and a whopping 279 hours in a car each year. Most of those hours are uneventful.

Yet, driving emergencies happen. Here’s what the experts suggest to do in two common situations.

Blown tire: Stay calm. Keep the foot off the brake. According to the experts at Popular Mechanics, gently press on the accelerator to stabilize the car, then let the car slow. Once the car has slowed, move toward the shoulder.

Remember that driving on an underinflated tire can increase the possibility of a blowout, as can an object in the road, according to the pros at Popular Mechanics.

Brake Failure: Most cars have dual braking systems, so even if the front goes out, the car may still have back brakes and vice versa, according to Allstate’s blog. There are several ways to slow a vehicle during a brake system failure.

First, slow the vehicle, carefully taking pressure off the gas pedal, and downshifting so the car will slow itself, thanks to the vehicle’s drag. When the car has slowed enough to be under control again, work to get out of traffic and off the road. Do not shut off the vehicle until it is off of the roadway, or it may be harder to control.

Ask the Expert

Posted on October 25, 2016September 12, 2016 by Victor Varma

Q. I’m buying my first house. I am pretty sure I can spend $150,000 for my house because I did some calculations online. Problem is, lenders won’t give me a firm quote until I buy something. What gives?

A. Online calculators can be excellent tools, but remember there are many costs associated with buying a house. One of those is the tax rate in the area you buy. You won’t know that until you pick a property. You also will have to buy Private Mortgage Insurance if you put less than 20 percent down. PMI can change your monthly mortgage payment significantly.
No lender can give you an estimate until you have an address of the property you hope to buy. An address is required for the Loan Estimate, a three-page disclosure document.
Start your home search by getting pre-approved for a loan. Go to a lender and give basic information about your finances. The lender will pull a credit report and discuss your income and debt. You should have no more than 43 percent debt to income. Usually, 36 percent is preferred.
Once pre-approved you can get an agent and shop for your home. When you do find the property you want to buy, you can apply for a mortgage by going to different lenders and getting a Loan Estimate from each. The Loan Estimate, which has to be issued within three days after you apply, will give you detailed information about the loan, including the loan amount, interest rate, monthly payments and whether these can change.
The Loan Estimate will also tell you the amount of cash you need to close and the estimated costs to close.
It will list fees for things you can’t shop for (appraisals, for instance) and things you can shop for (pest inspection, for example).

Shopping for a car online gets easier

Posted on October 21, 2016September 12, 2016 by Victor Varma

You can get just about anything online: housewares, food, and even cars.

There are now companies that take advantage of internet technologies to allow you to inspect a vehicle online, to secure money back guarantees, even deliver your new-to-you vehicle to your door. Popular options include Vroom.com, Carvana, TrueCar and Beepi.

Vroom (Vroom.com) is a car buying site that allows users to purchase cars in just a few steps. Choose a car, review coverages and pay. Delivery of your vehicle is scheduled once they receive your payment. Vroom offers a 90-day/6,000-mile warranty that covers all of a vehicle’s mechanical parts. The company also offers 24-hours roadside assistance, Inside-Out Guard for protection of paint, interior fabrics, and the windshield. You can even get a warranty booster and extend the manufacturer’s warranty for up to five years. Vroom handles titling and registration of your new vehicle. Vroom owns the vehicles they are trying to sell and reconditions the vehicles before selling.

Carvana (Carvana.com) allows you to shop from your desk. This company offers only Carvana certified vehicles, and allows people to see the vehicles they are interested in – inside and out – so they know a vehicle’s imperfections. Once you buy, you’ll have the option to fly in and pick up your car, or have it delivered. Upon delivery, you have seven days to return the car and get your money back. If you keep the car, you’ll have a 100-day/4,189 mile guarantee.

Beepi (Beepi.com) allows one to search by vehicle make, body type, year, and a wide range of other options. Beepi delivers your chosen vehicle and gives a full-service warranty as well as a 10-day money back guarantee.

TrueCar lets you shop used cars in your immediate area, showing you market price compared to dealer’s price.

Hope for baldness cure

Posted on October 14, 2016September 12, 2016 by Victor Varma

When it comes to hair, three truths stand out: Many people have lost it, many want it back, and the person who invents that cure will have plenty of customers.

According to the Hair Society, about 35 million men, and 21 million women suffer from hair loss.

The best hope is two new drugs that have been demonstrated to grow thick, normal hair in mice.

Reported in 2015 in the journal, Science Advances, two drugs, approved by the FDA for other uses, have been demonstrated to grow coats of hair on bald mice in just 10 days. The drugs are enzyme inhibitors reawaken the hair follicles from their resting state to their active state. The drugs, Ruxolitinib and Tofacitinib, have been tested in cases of Alopecia Areata, but new trials will test their effects on male pattern baldness. Alopecia Areata is the sudden loss of hair in patches.

In fact, hair growth in the case of Alopecia was a surprise side effect in a Yale study on plaque psoriasis. At the end of the seven-month study, one patient who had not shown hair growth for seven years ended up with a full head of hair.

The drugs are promising, but trials, expected to be completed in 2016, are still incomplete.

On the scale of fake promises, hair regrowth has to be in the top 10, right behind miracle weight loss pills. From herbal supplements to laser hair brushes, the claims to cure are legion, but the results are sketchy to non-existent.

Medications like Rogaine and Propecia can regrow hair in cases of Alopecia. The treatment is lifelong. But people can see some results in three to four months.

Speak to a doctor and do your research before you choose a hair loss treatment.

Hate needles? Dentists may soon use nasal spray

Posted on October 11, 2016September 12, 2016 by Victor Varma

Forget those scary needles; an anesthetic nasal spray is on its way to the dentist’s office.

Kovanaz is a pain-killing nasal spray which has now received FDA approval for use in dentistry. Patients must weigh at least 88 pounds to use the spray, according to the FDA. More tests might expand use to smaller children.

According to the Journal of the American Dental Association, Kovanaz is a combination of the anesthetic Tetracaine and the nasal decongestant Oxymetazoline. In its Phase 3 trial, the spray was demonstrated to be as effective at preventing pain as a shot for 88 percent of patients during a simple filling operation. This is comparable to the success of numbing injections. Side effects were minimal.

The product was developed by medical research company St. Renatus, named after the 5th-century patron saint of anesthesia.

It was discovered after a serendipitous accident. Co-founder Mark Kollar took a basketball to the chin and required 21 stitches. The doctor who stitched him up also diagnosed him with a deviated nasal septum. On Kollar’s follow-up visit, the doctor gave him a nasal spray containing Tetracaine to remove a nasal stent.

But Kollar noticed that his teeth were numb. And, it so happened that other patients had reported this.

A practicing dentist, Kollar tested his teeth with a pulp stimulator and found that his teeth were, in fact, numb.

The company hopes the new anesthetic will make trips to the dentist much less stressful.