Finally, you have arrived! You've found the home of your dreams! Take a deep breathe and remain calm. You must act swiftly but wisely. Take the emotions out of it and get down to business. You and your real estate agent must now decide on the best offer to make. Most deals are negotiable! The decision to submit a lower price offer or a full price offer will depend on many factors.
* The comparables will give you a starting point when considering the price to offer. Comparables are a list of several homes that have sold in your area of interest, that are most similar to the home in which you want to buy. Your agent will pull these from the MLS system.
* Currently we are in a buyer's market which means that there are more homes for sale than buyers and the prices of homes are much lower than they would be in a stable market. Sellers are usually more flexible and willing to negotiate in a buyer's market. This could encourage you to make a lower offer or request more seller concessions.
* Other buyers are searching as well and if you really like the home the odds are that other buyers will too. This might influence you to make a full price offer or close too it.
* The DOM or days on the market can also influence the offer. If the home has been on the market 6 months or more the seller may be eager to get this one off their payroll. This may translate into a better price and terms for you.
* “Motivated” sellers with specific needs for a quicker sale such as; an out of state seller, divorcing, estate sale, seller who needs to relocate, or has bought another home and is carrying two mortgages. All of these situations could possibly translate into a great deal for you.
Write It Down
Once you've decided on price and terms your agent will then draw up a written proposal to purchase the home. The contract will include your offer price, the amount of earnest money deposit, which will become a part of your down payment, the date you expect to close or a request for the seller to pay your closing costs. It would be wise to include a timeline for the seller to respond to know when to consider the offer rejected. If you want to include appliances, window treatments or lighting fixtures. All of this must be written into your offer to purchase contract to be legally binding. Verbal promises or agreements are not legally binding.
Contingencies: The Safety Net
Some offers are made with contingencies, events that must take place before the offer is binding and complete such as a satisfactory home inspection within 10 days. Or the buyer obtaining a satisfactory mortgage within a specified period of time. As you can see contingency clauses give you a way out of the deal if certain events don't take place.
Acceptance, Rejection or Counter
If the seller signs the offer as you submitted it you will then have a binding contract to purchase the home. The offer could also be rejected or a counter offer may be made by the seller. If a counteroffer is made you have the option to accept, reject or counter the counter offer. Withdrawing an offer is also an option. However, you will want to consult with your agent and possibly an attorney if the offer has already been accepted by the seller. Withdrawing at this point could cause you to lose your earnest money deposit.
You have now reached the door step to home ownership, good luck in crossing the threshold! For more information regarding home buying options visit www.MyFirstMichiganHome.com.
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Thursday, December 31, 2009
Wednesday, December 30, 2009
Four Tips On How To Be A Savvy House Hunting
Now that you've been armed with a budget and a mortgage pre-approval from your lender, there are a few things that you must know before you begin hunting for that dream home. This is the time when communication between you and your agent is most critical since you must convey exactly what you want in a home to make your search go more efficiently. Here are some tips that can make you a smarter house hunter.
1. Wish List
Make a list of all the things you want in a new home such as the style of home, fireplace, number of bedrooms and baths, breakfast nook, garage size, etc. Then prioritize them from must haves to can live without. Your agent needs to know what’s most important to you to save on time. Keep in mind that there is no perfect home. Let me repeat that. There is no perfect home! Most often one home will not have everything that you desire, therefore, some features of lesser importance may be sacrificed to broaden your search options. Your agent will then provide you with a list of houses based upon those features near and dear to your heart.
2. Document Each House
Take plenty of good notes on both the things you liked and disliked about each home. Over time the homes will start to run together and you could find yourself dazed and confused and wasting time. Taking photos (with prior approval from the owner if occupied) is also a good idea. When you find a house (or houses) you really like, it's a good idea to walk-through several times and at different times of the day. You may realize on your second visit that the room sizes are in fact smaller than they first appeared. Maybe the home had flaws that you didn't notice the first time.
3. Investigate the Neighborhood
For those houses that interest you the most do some investigative work on your own! Drive by the home and surrounding streets at different times of the day and on weekends. You may find the area a little less appealing when the natives are out and about. For example, the house next door may be the neighborhood hangout for the local teens. The neighbors behind you may have a dog that barks all day every day! Are there schools very nearby? A school on the next block will create a lot of traffic on your block. These could present annoying situations for you.
4. Know What to Look For
* Are there cracks in the walls or ceilings, uneven flooring? This could be a sign that the house
is shifting downward.
* Are there moisture problems, water marks on ceilings, walls, or around windows, mold or mildew odor?
Fresh paint could be an attempt to mask these issues that could be costly to repair.
* Kitchens and bathrooms are the most expensive areas to remodel so be especially thorough in
checking out fixtures, plumbing, and tiles.
* Doors and windows that don't easily open and close, missing window screens?
* Outdated lighting and plumbing fixtures could mean outdated wiring and plumbing systems.
* The proximity of the master bedroom to other bedrooms could be important to those buyers with
small children.
* Know the measurements of your furniture and appliances, will they fit in their spaces properly?
* Are there any major cracks in the sidewalk, driveway and porches as these repairs could prove costly.
This could also create leakage issues into the basement depending upon location.
* Are there trees in the neighbors yard that could prove to be a hazard for you?
* Do the roof shingles look tattered and worn and is the roof sagging? A new roof is also costly.
* Are the gutters rusted and leaking?
These are just a few things to look for as you view the home. Once you've chosen a home to purchase we highly recommend that you pay for a home inspection which will provide you with the details of the faults and potential problems of the home. For more details on house hunting visit www.MyFirstMichiganHome.com
1. Wish List
Make a list of all the things you want in a new home such as the style of home, fireplace, number of bedrooms and baths, breakfast nook, garage size, etc. Then prioritize them from must haves to can live without. Your agent needs to know what’s most important to you to save on time. Keep in mind that there is no perfect home. Let me repeat that. There is no perfect home! Most often one home will not have everything that you desire, therefore, some features of lesser importance may be sacrificed to broaden your search options. Your agent will then provide you with a list of houses based upon those features near and dear to your heart.
2. Document Each House
Take plenty of good notes on both the things you liked and disliked about each home. Over time the homes will start to run together and you could find yourself dazed and confused and wasting time. Taking photos (with prior approval from the owner if occupied) is also a good idea. When you find a house (or houses) you really like, it's a good idea to walk-through several times and at different times of the day. You may realize on your second visit that the room sizes are in fact smaller than they first appeared. Maybe the home had flaws that you didn't notice the first time.
3. Investigate the Neighborhood
For those houses that interest you the most do some investigative work on your own! Drive by the home and surrounding streets at different times of the day and on weekends. You may find the area a little less appealing when the natives are out and about. For example, the house next door may be the neighborhood hangout for the local teens. The neighbors behind you may have a dog that barks all day every day! Are there schools very nearby? A school on the next block will create a lot of traffic on your block. These could present annoying situations for you.
4. Know What to Look For
* Are there cracks in the walls or ceilings, uneven flooring? This could be a sign that the house
is shifting downward.
* Are there moisture problems, water marks on ceilings, walls, or around windows, mold or mildew odor?
Fresh paint could be an attempt to mask these issues that could be costly to repair.
* Kitchens and bathrooms are the most expensive areas to remodel so be especially thorough in
checking out fixtures, plumbing, and tiles.
* Doors and windows that don't easily open and close, missing window screens?
* Outdated lighting and plumbing fixtures could mean outdated wiring and plumbing systems.
* The proximity of the master bedroom to other bedrooms could be important to those buyers with
small children.
* Know the measurements of your furniture and appliances, will they fit in their spaces properly?
* Are there any major cracks in the sidewalk, driveway and porches as these repairs could prove costly.
This could also create leakage issues into the basement depending upon location.
* Are there trees in the neighbors yard that could prove to be a hazard for you?
* Do the roof shingles look tattered and worn and is the roof sagging? A new roof is also costly.
* Are the gutters rusted and leaking?
These are just a few things to look for as you view the home. Once you've chosen a home to purchase we highly recommend that you pay for a home inspection which will provide you with the details of the faults and potential problems of the home. For more details on house hunting visit www.MyFirstMichiganHome.com
Monday, December 28, 2009
In an Infants Eyes
“Every baby born into the world is a finer one than the last one”. Charles Dickens
I have had an eye opening experience this holiday season. I’ve been blessed to have my daughter and our first grandchild spend time with us. The other day my wife was quizzing me and she asked me if I wanted to have another child of my own, to which I emphatically replied, No! I just wanted to enjoy my grandson for the holidays.
Which brings me to the point of why I wanted to write this article. Bryce is the king of the castle this weekend. His every beck and call is answered from not only my family, but anyone who can hear his cry or whimper. At this time in his life he has not formed any opinions good or bad, habits are just based on his needs to be dried when he is wet, fed when he is hungry, or to sleep when he is tired. He is an open slate that will be molded good or bad over time. Whatever we want him to be, we will steer him in that direction. That made me think real hard about my life and the life of the people around me. What directions or plans did there parents make? I’m sure in most cases the primary goal of most parents in the beginning is for health and well being. Anything beyond that I’m sure the process is like night and day from one household to the next. Which makes me wonder, what are we instilling in our kids, what examples are we setting from day to day?
A great man once said, “you cannot be what you cannot see.” With that in mind, my goal from this point forward is to be the person that I want my grandchild to become. The time for telling children those tired old words of “go to school, get good grades” and live life happily ever after has come and gone. For every A student in America there are 10 in other countries that are just as competent and prepared for the same job. Thomas Freidman was right when he said that the world is flat and the playing field is becoming more even everyday. I want to be the one that blazes a trail for my grandson to follow, to build a business that can stand the test of time.
Now I realize that this may not hit home for everyone, but for those of you who have it in them to blaze a trail, make a change now. With the new year quickly approaching include this goal to your agenda for 2010. If not for you, for your family. Contrary to that old saying, old dogs can learn new tricks! Barack said it best, you are who you have been waiting for, so go out and set the pace for your family. We are the examples that our children and grandchildren see on a daily basis. We need to lead, set the path, and trail blaze it every day. My goal is to ask a simple question of myself, if Bryce is watching and listening to me, what can he learn from my actions? Like it or not he will be watching someone.
“I have found the best way to give advice to your children is to find out what they want and then advise them to do it.” - Harry S. Truman
I have had an eye opening experience this holiday season. I’ve been blessed to have my daughter and our first grandchild spend time with us. The other day my wife was quizzing me and she asked me if I wanted to have another child of my own, to which I emphatically replied, No! I just wanted to enjoy my grandson for the holidays.
Which brings me to the point of why I wanted to write this article. Bryce is the king of the castle this weekend. His every beck and call is answered from not only my family, but anyone who can hear his cry or whimper. At this time in his life he has not formed any opinions good or bad, habits are just based on his needs to be dried when he is wet, fed when he is hungry, or to sleep when he is tired. He is an open slate that will be molded good or bad over time. Whatever we want him to be, we will steer him in that direction. That made me think real hard about my life and the life of the people around me. What directions or plans did there parents make? I’m sure in most cases the primary goal of most parents in the beginning is for health and well being. Anything beyond that I’m sure the process is like night and day from one household to the next. Which makes me wonder, what are we instilling in our kids, what examples are we setting from day to day?
A great man once said, “you cannot be what you cannot see.” With that in mind, my goal from this point forward is to be the person that I want my grandchild to become. The time for telling children those tired old words of “go to school, get good grades” and live life happily ever after has come and gone. For every A student in America there are 10 in other countries that are just as competent and prepared for the same job. Thomas Freidman was right when he said that the world is flat and the playing field is becoming more even everyday. I want to be the one that blazes a trail for my grandson to follow, to build a business that can stand the test of time.
Now I realize that this may not hit home for everyone, but for those of you who have it in them to blaze a trail, make a change now. With the new year quickly approaching include this goal to your agenda for 2010. If not for you, for your family. Contrary to that old saying, old dogs can learn new tricks! Barack said it best, you are who you have been waiting for, so go out and set the pace for your family. We are the examples that our children and grandchildren see on a daily basis. We need to lead, set the path, and trail blaze it every day. My goal is to ask a simple question of myself, if Bryce is watching and listening to me, what can he learn from my actions? Like it or not he will be watching someone.
“I have found the best way to give advice to your children is to find out what they want and then advise them to do it.” - Harry S. Truman
Saturday, December 26, 2009
Twelve Affirmations To Live By
By Herbert Harris, Jr.
1. I Have A Positive Self Image.
2. I Believe In Myself.
3. I Define My Purpose For Living.
4. I Think Positively With Understanding And Faith
That I Can Realize My Purpose.
5. I Constantly Visualize My Purpose,
Seeing It Clearly In My Mind.
6. I Always Focus On The Positive.
7. I Have Confidence And Courage
To Be Inner-Directed.
8. I Have Control Of My Mind, My Body,
My Instincts, And My Emotions.
9. I Always Do It Now.
10. I Have A Plan For My Success.
11. I Persist In My Efforts, With Unshakable Faith In My Own Ability.
12. I Execute My Plan And Produce Desired Results.
1. I Have A Positive Self Image.
2. I Believe In Myself.
3. I Define My Purpose For Living.
4. I Think Positively With Understanding And Faith
That I Can Realize My Purpose.
5. I Constantly Visualize My Purpose,
Seeing It Clearly In My Mind.
6. I Always Focus On The Positive.
7. I Have Confidence And Courage
To Be Inner-Directed.
8. I Have Control Of My Mind, My Body,
My Instincts, And My Emotions.
9. I Always Do It Now.
10. I Have A Plan For My Success.
11. I Persist In My Efforts, With Unshakable Faith In My Own Ability.
12. I Execute My Plan And Produce Desired Results.
Have You Found the Right Mortgage Professional?
Finding the right mortgage lender or mortgage broker is absolutely imperative. You are about to make one of the biggest transactions of your life, who you get to process your loan could save you money and stress. Here are a few things to consider when selecting your mortgage professional.
Will you work with a mortgage broker or mortgage lender? Brokers get paid a fee to shop your application around to find the best lender to fit your needs. Lenders can only offer you the loan options specific to their particular institution (bank, credit union, etc). A Broker could be helpful to good people with bruised credit. Lenders on the other hand tend to be less accommodating to buyers with challenged credit. However, if you don’t have credit issues or special needs you could find using a lender a good fit, it just depends on your situation.
Whether you work with a broker or lender understand that your mortgage professional should work for you. In order to provide you with the best service the lender should return your phone calls in a timely fashion and answer any questions you may have thoroughly. Lenders should inform you of your mortgage options and allow you to make a decision based upon what you are comfortable with. Avoid lenders who will try to push you into products of their choice.
Be prepared to do your homework. Ask family, friends and coworkers who have recently financed a home about their lender and their experience. Search the internet, and local news papers. Have a list of questions prepared to ask each potential lender. Below is a list of suggested questions, if you have additional questions, by all means ask.
What is the interest rate? (be aware that rates change frequently)
What is the annual percentage rate (APR) fixed or adjustable?
How many points will you be required to pay?
What are the closing costs?
How long will it take to process the loan?
What is the lock-in policy for the interest rate?
Is there a prepayment Penalty?
Does the lender have a first-time buyers program?
What are the loan origination, underwriting, settlement and transaction fees?
What is the lender’s track record on closing loans?
Ask if there is a broker involved? (brokers are paid a fee for their services that may be separate from and in addition to the other fees)
Ask how your credit history affects the price of your loan and what you would need to do to get a better price. Take the time to shop around and negotiate the best deal that you can.
Note: To avoid adding too many inquiries to your credit report that could lower your credit score, it would be wise to obtain your own 3-in-1 report with FICO scores for the initial meeting with your mortgage professional because ordering your own report does not affect your score.
Ask questions! We can’t stress that enough this is a huge undertaking and you should leave nothing to chance. Do your own research, the internet holds a wealth of knowledge. Have a complete understanding of what you are getting into.
If you have questions or need further assistance the staff at www.MyFirstMichiganHome.com will be more than happy to help.
Will you work with a mortgage broker or mortgage lender? Brokers get paid a fee to shop your application around to find the best lender to fit your needs. Lenders can only offer you the loan options specific to their particular institution (bank, credit union, etc). A Broker could be helpful to good people with bruised credit. Lenders on the other hand tend to be less accommodating to buyers with challenged credit. However, if you don’t have credit issues or special needs you could find using a lender a good fit, it just depends on your situation.
Whether you work with a broker or lender understand that your mortgage professional should work for you. In order to provide you with the best service the lender should return your phone calls in a timely fashion and answer any questions you may have thoroughly. Lenders should inform you of your mortgage options and allow you to make a decision based upon what you are comfortable with. Avoid lenders who will try to push you into products of their choice.
Be prepared to do your homework. Ask family, friends and coworkers who have recently financed a home about their lender and their experience. Search the internet, and local news papers. Have a list of questions prepared to ask each potential lender. Below is a list of suggested questions, if you have additional questions, by all means ask.
What is the interest rate? (be aware that rates change frequently)
What is the annual percentage rate (APR) fixed or adjustable?
How many points will you be required to pay?
What are the closing costs?
How long will it take to process the loan?
What is the lock-in policy for the interest rate?
Is there a prepayment Penalty?
Does the lender have a first-time buyers program?
What are the loan origination, underwriting, settlement and transaction fees?
What is the lender’s track record on closing loans?
Ask if there is a broker involved? (brokers are paid a fee for their services that may be separate from and in addition to the other fees)
Ask how your credit history affects the price of your loan and what you would need to do to get a better price. Take the time to shop around and negotiate the best deal that you can.
Note: To avoid adding too many inquiries to your credit report that could lower your credit score, it would be wise to obtain your own 3-in-1 report with FICO scores for the initial meeting with your mortgage professional because ordering your own report does not affect your score.
Ask questions! We can’t stress that enough this is a huge undertaking and you should leave nothing to chance. Do your own research, the internet holds a wealth of knowledge. Have a complete understanding of what you are getting into.
If you have questions or need further assistance the staff at www.MyFirstMichiganHome.com will be more than happy to help.
Friday, December 25, 2009
Where To Find the Money To Buy A Home One of the most important things you must do when preparing to purchase a home is assessing your budget. You mu
One of the most important things you must do when preparing to purchase a home is assessing your budget. You must be clear on where you are financially. What can you afford in a monthly mortgage? But also realize that your mortgage payment will often include other fees such as loan interest, property taxes, homeowners insurance and in some cases mortgage insurance. This will you give you a better idea of the price of home in which you should set your sites on.
Another thing you must be clear on is that there are also expenses associated with purchasing a home that you the buyer are responsible for, such as:
Earnest Money Deposits - required to show the seller that you are a serious buyer. The deposit could range from $500 - $2,000 with the typical being about $1,000.
Appraisal Fee - charged by an appraiser to estimate the value of the home. The cost can be $300 and up
Home inspection Fee - (optional) is an objective visual examination of the physical structure and systems of the home, from the roof to the foundation. The cost can start at $300 on up.
Closing Costs - are the charges made by those involved with the sale of the home. They range from 1%-8% of the price of the home but typically are between 2%-3%. Depending upon your borrowing power this cost could possibly be rolled into the mortgage.
Down Payments - The “no money down” option is usually reserved for those with high credit scores (700+). For most, a down payment is required. For a conventional loan it can be 20% of purchase price. Low down payment government loans (FHA or VA) are becoming increasingly available and can be 3% - 6% of the price of the home. (Consult your mortgage broker or lender)
Wait! Don't Panic. We have a few ideas about where you may be able to find the money for the above expenses.
Savings
Set a goal to save a certain amount in a certain time. Stash away an amount every paycheck that will help you reach your goal amount.
Tax Refund
This is a good source of funds. You can even increase the amount of your refund by changing your withholding exemptions from 1 to zero. This may be a good option for those who have a difficult time saving money.
Retirement
Certain retirement accounts such as a 401(k) will allow you to borrow from them to buy a home. Consult with an Accountant.
Sellers
In some cases the seller is sometimes willing to pay your closing costs when you pay the seller’s asking price.
Closing Cost Assistance Programs
Assistance may be available through your local Community Planning & Development office or nonprofit organizations. Check with your city departments and search the internet.
Down Payment Assistance Programs
There are down payment assistance programs available through the federal government and nonprofit organizations. Check these links for more information: HUD,
Nehemiah Program, AmeriDream, Partners In Charity, Homes For All Programs
Borrow from Family
Ask and you just may receive. Parents or other family members may be willing to let you borrow the money to buy a home.
Gift from family
Favorable tax laws will let each parent gift a certain amount without tax consequences.
Second Job
An extra income will allow you to save more money faster.
Sell your goods
Sell your unused electronics, bicycles, furniture, jewelry, etc. on Craig’s list, in a garage sale, or on eBay.
Where there is a will there is a way! With a little creativity, discipline and diligent research you can make your dream of homeownership a reality! For more ideas visit www.myfirstmichiganhome.com.
One of the most important things you must do when preparing to purchase a home is assessing your budget. You must be clear on where you are financially. What can you afford in a monthly mortgage? But also realize that your mortgage payment will often include other fees such as loan interest, property taxes, homeowners insurance and in some cases mortgage insurance. This will you give you a better idea of the price of home in which you should set your sites on.
Another thing you must be clear on is that there are also expenses associated with purchasing a home that you the buyer are responsible for, such as:
Earnest Money Deposits - required to show the seller that you are a serious buyer. The deposit could range from $500 - $2,000 with the typical being about $1,000.
Appraisal Fee - charged by an appraiser to estimate the value of the home. The cost can be $300 and up
Home inspection Fee - (optional) is an objective visual examination of the physical structure and systems of the home, from the roof to the foundation. The cost can start at $300 on up.
Closing Costs - are the charges made by those involved with the sale of the home. They range from 1%-8% of the price of the home but typically are between 2%-3%. Depending upon your borrowing power this cost could possibly be rolled into the mortgage.
Down Payments - The “no money down” option is usually reserved for those with high credit scores (700+). For most, a down payment is required. For a conventional loan it can be 20% of purchase price. Low down payment government loans (FHA or VA) are becoming increasingly available and can be 3% - 6% of the price of the home. (Consult your mortgage broker or lender)
Wait! Don't Panic. We have a few ideas about where you may be able to find the money for the above expenses.
Savings
Set a goal to save a certain amount in a certain time. Stash away an amount every paycheck that will help you reach your goal amount.
Tax Refund
This is a good source of funds. You can even increase the amount of your refund by changing your withholding exemptions from 1 to zero. This may be a good option for those who have a difficult time saving money.
Retirement
Certain retirement accounts such as a 401(k) will allow you to borrow from them to buy a home. Consult with an Accountant.
Sellers
In some cases the seller is sometimes willing to pay your closing costs when you pay the seller’s asking price.
Closing Cost Assistance Programs
Assistance may be available through your local Community Planning & Development office or nonprofit organizations. Check with your city departments and search the internet.
Down Payment Assistance Programs
There are down payment assistance programs available through the federal government and nonprofit organizations. Check these links for more information: HUD,
Nehemiah Program, AmeriDream, Partners In Charity, Homes For All Programs
Borrow from Family
Ask and you just may receive. Parents or other family members may be willing to let you borrow the money to buy a home.
Gift from family
Favorable tax laws will let each parent gift a certain amount without tax consequences.
Second Job
An extra income will allow you to save more money faster.
Sell your goods
Sell your unused electronics, bicycles, furniture, jewelry, etc. on Craig’s list, in a garage sale, or on eBay.
Where there is a will there is a way! With a little creativity, discipline and diligent research you can make your dream of homeownership a reality! For more ideas visit www.myfirstmichiganhome.com.
Another thing you must be clear on is that there are also expenses associated with purchasing a home that you the buyer are responsible for, such as:
Earnest Money Deposits - required to show the seller that you are a serious buyer. The deposit could range from $500 - $2,000 with the typical being about $1,000.
Appraisal Fee - charged by an appraiser to estimate the value of the home. The cost can be $300 and up
Home inspection Fee - (optional) is an objective visual examination of the physical structure and systems of the home, from the roof to the foundation. The cost can start at $300 on up.
Closing Costs - are the charges made by those involved with the sale of the home. They range from 1%-8% of the price of the home but typically are between 2%-3%. Depending upon your borrowing power this cost could possibly be rolled into the mortgage.
Down Payments - The “no money down” option is usually reserved for those with high credit scores (700+). For most, a down payment is required. For a conventional loan it can be 20% of purchase price. Low down payment government loans (FHA or VA) are becoming increasingly available and can be 3% - 6% of the price of the home. (Consult your mortgage broker or lender)
Wait! Don't Panic. We have a few ideas about where you may be able to find the money for the above expenses.
Savings
Set a goal to save a certain amount in a certain time. Stash away an amount every paycheck that will help you reach your goal amount.
Tax Refund
This is a good source of funds. You can even increase the amount of your refund by changing your withholding exemptions from 1 to zero. This may be a good option for those who have a difficult time saving money.
Retirement
Certain retirement accounts such as a 401(k) will allow you to borrow from them to buy a home. Consult with an Accountant.
Sellers
In some cases the seller is sometimes willing to pay your closing costs when you pay the seller’s asking price.
Closing Cost Assistance Programs
Assistance may be available through your local Community Planning & Development office or nonprofit organizations. Check with your city departments and search the internet.
Down Payment Assistance Programs
There are down payment assistance programs available through the federal government and nonprofit organizations. Check these links for more information: HUD,
Nehemiah Program, AmeriDream, Partners In Charity, Homes For All Programs
Borrow from Family
Ask and you just may receive. Parents or other family members may be willing to let you borrow the money to buy a home.
Gift from family
Favorable tax laws will let each parent gift a certain amount without tax consequences.
Second Job
An extra income will allow you to save more money faster.
Sell your goods
Sell your unused electronics, bicycles, furniture, jewelry, etc. on Craig’s list, in a garage sale, or on eBay.
Where there is a will there is a way! With a little creativity, discipline and diligent research you can make your dream of homeownership a reality! For more ideas visit www.myfirstmichiganhome.com.
One of the most important things you must do when preparing to purchase a home is assessing your budget. You must be clear on where you are financially. What can you afford in a monthly mortgage? But also realize that your mortgage payment will often include other fees such as loan interest, property taxes, homeowners insurance and in some cases mortgage insurance. This will you give you a better idea of the price of home in which you should set your sites on.
Another thing you must be clear on is that there are also expenses associated with purchasing a home that you the buyer are responsible for, such as:
Earnest Money Deposits - required to show the seller that you are a serious buyer. The deposit could range from $500 - $2,000 with the typical being about $1,000.
Appraisal Fee - charged by an appraiser to estimate the value of the home. The cost can be $300 and up
Home inspection Fee - (optional) is an objective visual examination of the physical structure and systems of the home, from the roof to the foundation. The cost can start at $300 on up.
Closing Costs - are the charges made by those involved with the sale of the home. They range from 1%-8% of the price of the home but typically are between 2%-3%. Depending upon your borrowing power this cost could possibly be rolled into the mortgage.
Down Payments - The “no money down” option is usually reserved for those with high credit scores (700+). For most, a down payment is required. For a conventional loan it can be 20% of purchase price. Low down payment government loans (FHA or VA) are becoming increasingly available and can be 3% - 6% of the price of the home. (Consult your mortgage broker or lender)
Wait! Don't Panic. We have a few ideas about where you may be able to find the money for the above expenses.
Savings
Set a goal to save a certain amount in a certain time. Stash away an amount every paycheck that will help you reach your goal amount.
Tax Refund
This is a good source of funds. You can even increase the amount of your refund by changing your withholding exemptions from 1 to zero. This may be a good option for those who have a difficult time saving money.
Retirement
Certain retirement accounts such as a 401(k) will allow you to borrow from them to buy a home. Consult with an Accountant.
Sellers
In some cases the seller is sometimes willing to pay your closing costs when you pay the seller’s asking price.
Closing Cost Assistance Programs
Assistance may be available through your local Community Planning & Development office or nonprofit organizations. Check with your city departments and search the internet.
Down Payment Assistance Programs
There are down payment assistance programs available through the federal government and nonprofit organizations. Check these links for more information: HUD,
Nehemiah Program, AmeriDream, Partners In Charity, Homes For All Programs
Borrow from Family
Ask and you just may receive. Parents or other family members may be willing to let you borrow the money to buy a home.
Gift from family
Favorable tax laws will let each parent gift a certain amount without tax consequences.
Second Job
An extra income will allow you to save more money faster.
Sell your goods
Sell your unused electronics, bicycles, furniture, jewelry, etc. on Craig’s list, in a garage sale, or on eBay.
Where there is a will there is a way! With a little creativity, discipline and diligent research you can make your dream of homeownership a reality! For more ideas visit www.myfirstmichiganhome.com.
Thursday, December 24, 2009
How To Jumpstart Your Credit To Buy A Home
Tis’ the season for gift giving, however, instead of spending all that time, energy and money on stacking gifts under the tree this year, why not try giving yourself the gift that keeps on giving. The 700+ credit score. Your credit history holds a very significant key to your new home. It determines your borrowing power, loan options and the interest you will pay. The higher the score the lower the interest rate which in turn saves you money in monthly payments. Here are some tips on how to increase your credit score.
The Jumpstart
Order your credit report with FICO scores from all three major agencies Experian, TransUnion and Equifax. The FICO score is usually not included with the report and this is the score that lenders will see. You can also order a 3-in-one credit report online from one of the agencies.
*Dispute: any incorrect entries, adverse information that's more than seven years old, including lawsuits, judgments, paid tax liens, accounts sent to collection, late payments and overdue child support. Request the removal of bankruptcies reported more than ten years after the date of the last activity, and credit inquiries that are more than two years old. Creditors by law have 30 days to respond to any disputes you’ve made, if they do not respond, the negative items will be changed or removed from your report.
Once the 30-day investigation period is over, the credit reporting agencies will send the results to you by snail mail or email. If some of the items you disputed were not removed, consider disputing them again in a few months. Be prepared with any documentation you may have to support your dispute. The removal of adverse items from your credit report will raise your credit score!
How To Manage Your Credit
Improve payment history
Always pay your bills on time. Late payments play a major role in driving down your score. If you have past-due bills now, bring them current and keep them that way. Contact your creditors as soon as you know you will have a problem paying bills on time. Try to work out a payment arrangement and negotiate with them to keep at least a portion of the late notations off of your credit reports.
Maintain low balances
Keep your credit card balances low. Use only 10% - 20% of the available limit. Pay your debt off. Start by paying off the smaller balances then work on aggressively paying down larger accounts. Don't close unused accounts, a zero balance might help your score.
Length of Your Credit History
Don't open several new accounts in a short period, especially if your credit history is less than three years. Adding accounts too rapidly sends up a red flag that you are not handling your credit responsibly.
Limit the Number of Inquiries
Several credit inquiries during a short period means you are attempting to open multiple new accounts, and that lowers your credit score. If multiple inquiries are necessary, have them pulled as closely together as possible. Checking your own credit report does not affect your score.
The Types of Credit You Use
A mixture of credit cards and installment loans, loans with fixed payments, can help raise your score if you manage the credit responsibly.
Build up your credit score today to secure that dream home for tomorrow! For more information visit www.myfirstmichiganhome.com.
The Jumpstart
Order your credit report with FICO scores from all three major agencies Experian, TransUnion and Equifax. The FICO score is usually not included with the report and this is the score that lenders will see. You can also order a 3-in-one credit report online from one of the agencies.
*Dispute: any incorrect entries, adverse information that's more than seven years old, including lawsuits, judgments, paid tax liens, accounts sent to collection, late payments and overdue child support. Request the removal of bankruptcies reported more than ten years after the date of the last activity, and credit inquiries that are more than two years old. Creditors by law have 30 days to respond to any disputes you’ve made, if they do not respond, the negative items will be changed or removed from your report.
Once the 30-day investigation period is over, the credit reporting agencies will send the results to you by snail mail or email. If some of the items you disputed were not removed, consider disputing them again in a few months. Be prepared with any documentation you may have to support your dispute. The removal of adverse items from your credit report will raise your credit score!
How To Manage Your Credit
Improve payment history
Always pay your bills on time. Late payments play a major role in driving down your score. If you have past-due bills now, bring them current and keep them that way. Contact your creditors as soon as you know you will have a problem paying bills on time. Try to work out a payment arrangement and negotiate with them to keep at least a portion of the late notations off of your credit reports.
Maintain low balances
Keep your credit card balances low. Use only 10% - 20% of the available limit. Pay your debt off. Start by paying off the smaller balances then work on aggressively paying down larger accounts. Don't close unused accounts, a zero balance might help your score.
Length of Your Credit History
Don't open several new accounts in a short period, especially if your credit history is less than three years. Adding accounts too rapidly sends up a red flag that you are not handling your credit responsibly.
Limit the Number of Inquiries
Several credit inquiries during a short period means you are attempting to open multiple new accounts, and that lowers your credit score. If multiple inquiries are necessary, have them pulled as closely together as possible. Checking your own credit report does not affect your score.
The Types of Credit You Use
A mixture of credit cards and installment loans, loans with fixed payments, can help raise your score if you manage the credit responsibly.
Build up your credit score today to secure that dream home for tomorrow! For more information visit www.myfirstmichiganhome.com.
Wednesday, December 23, 2009
What Every Home Buyer Should Know About Their Credit!
Your credit score is extremely important in the home buying process. It plays a huge role in how lenders view you as a borrower. Your score helps lenders determine how much of a risk you are, the lower the score the more of a risk they feel you will be to default on the loan. It also determines the interest rate (cost to borrow) and the type of loan you will be able to qualify for. Borrowers with a credit score of 700 and over are typically offered more financing options and better interest rates, and the No Money Down options. However, don't be discouraged if your scores are lower, there's a mortgage product for nearly everyone.
Know Your Credit Report
The first thing you should do when preparing to buy a home is perform a “Self Credit Check”. Order your credit report from all three agencies Equifax, Experian, TransUnion and review them thoroughly for errors. If there are errors contact the credit reporting agency(s) and request that the errors be removed. If you have negative items that are correct prepare a letter of explanation for those items to be attached to your file. Lenders are currently looking for a minimum credit score of 620. However, there has been talk of the minimum going up to 640. Avoid making significant credit purchases during this time, such as a car as this will surely lower your score.
How do Lenders View Your Report?
Lenders will pull credit reports and scores from all three major credit reporting agencies. They'll probably use the middle score to work your loan application. Ask your lender to explain which credit scores will be used and how they affect your loan application. Below are the aspects of your credit report that lenders scrutinize in the order of importance.
1. Your Payment History
2. Amounts You Owe
3. Length of Your Credit History
4. Types of Credit Used
5. New Credit
Negative Items on the Report
Bankruptcies remain on your credit report for ten years, while other types of entries are generally reported for seven years. If an account that was previously past due has been brought current, and has been either paid off or kept current for at least a year, the creditor might agree to an early deletion of the past due references. Write a letter to your creditor and request that the negative entries be removed. They'll often comply if they see you are up to date and handling your account in a positive way.
A Student loan default may not always be permanent. Talk with your lender to find out what you can do to bring your student loan out of default. Often, you will have to make several months of timely payments before your student loan will be considered current.
Quick Fixes
The fastest ways to raise your credit score are to pay down or off your current debt, and have negative entries and errors removed from your credit reports. If your attempts to correct an entry are unsuccessful, you can ask the reporting agency to insert a 100-character explanation next to it that explains your side of the story.
How to Improve Your Credit Score
Improve your payment history by paying on time and paying down your debt.
Maintain low credit balances.
Limit the number of inquiries made to your credit report over a short period of time.
Remove errors from your report.
Maintain a good mixture of credit cards, installment loans and fixed payments.
If you what to know more about how to manage your credit visit us at www.mifirstmichiganhome.com.
Know Your Credit Report
The first thing you should do when preparing to buy a home is perform a “Self Credit Check”. Order your credit report from all three agencies Equifax, Experian, TransUnion and review them thoroughly for errors. If there are errors contact the credit reporting agency(s) and request that the errors be removed. If you have negative items that are correct prepare a letter of explanation for those items to be attached to your file. Lenders are currently looking for a minimum credit score of 620. However, there has been talk of the minimum going up to 640. Avoid making significant credit purchases during this time, such as a car as this will surely lower your score.
How do Lenders View Your Report?
Lenders will pull credit reports and scores from all three major credit reporting agencies. They'll probably use the middle score to work your loan application. Ask your lender to explain which credit scores will be used and how they affect your loan application. Below are the aspects of your credit report that lenders scrutinize in the order of importance.
1. Your Payment History
2. Amounts You Owe
3. Length of Your Credit History
4. Types of Credit Used
5. New Credit
Negative Items on the Report
Bankruptcies remain on your credit report for ten years, while other types of entries are generally reported for seven years. If an account that was previously past due has been brought current, and has been either paid off or kept current for at least a year, the creditor might agree to an early deletion of the past due references. Write a letter to your creditor and request that the negative entries be removed. They'll often comply if they see you are up to date and handling your account in a positive way.
A Student loan default may not always be permanent. Talk with your lender to find out what you can do to bring your student loan out of default. Often, you will have to make several months of timely payments before your student loan will be considered current.
Quick Fixes
The fastest ways to raise your credit score are to pay down or off your current debt, and have negative entries and errors removed from your credit reports. If your attempts to correct an entry are unsuccessful, you can ask the reporting agency to insert a 100-character explanation next to it that explains your side of the story.
How to Improve Your Credit Score
Improve your payment history by paying on time and paying down your debt.
Maintain low credit balances.
Limit the number of inquiries made to your credit report over a short period of time.
Remove errors from your report.
Maintain a good mixture of credit cards, installment loans and fixed payments.
If you what to know more about how to manage your credit visit us at www.mifirstmichiganhome.com.
Monday, December 21, 2009
ON THAT NOTE
While most of the public is scrambling to come up with new resolutions, it would behoove us as entrepreneurs and business owners to take this time to get financially educated or re-educated if you will.
The old rules of money are a thing of the past as with the 20th Century. The days of going to college to get the high paying job, to save money, to get the nice home, to save for retirement has become a shrinking reality.
In the coming decade the rich will get richer because of financial literacy instead of the "Sweat of the brow".
Because of the new rules, to prosper one must stay abreast of the changing financial climate. There is a bright future ahead for those who take heed to this paradigm.
I'll leave you with this encouraging line that has been echoed by economist for many years:
"More millionaires have been created during the Great Depression than any other time in American hisory".
and
ON THAT NOTE, due make it a great week !
The old rules of money are a thing of the past as with the 20th Century. The days of going to college to get the high paying job, to save money, to get the nice home, to save for retirement has become a shrinking reality.
In the coming decade the rich will get richer because of financial literacy instead of the "Sweat of the brow".
Because of the new rules, to prosper one must stay abreast of the changing financial climate. There is a bright future ahead for those who take heed to this paradigm.
I'll leave you with this encouraging line that has been echoed by economist for many years:
"More millionaires have been created during the Great Depression than any other time in American hisory".
and
ON THAT NOTE, due make it a great week !
Monday, December 14, 2009
ON THAT NOTE
Choice of vocation is a key stepping stone on your path to success. Don't waste your time or someone else's toiling away at an occupation that you dread or that's a poor fit of your abilities. Take time out of your schedule to tally up personal inventory; your weaknesses and strengths. By developing your strengths or aptitude you'll get a good feel for what's right for you, a fast track for excelling.
It's just as important to choose or structure an environment that supports or nurtures your success. You can never gain any measurable progress in an oppressing organization where you are forced to "Dumb down your ambition or ideas" so that you don't "Rock the boat".
Once you find the right fit you will be pleasantly surprised at how fast you achieve your goals. Remember this: No matter how good of a jockey you are, you can't win if you're on the wrong horse and
ON THAT NOTE, do make it a great week!
It's just as important to choose or structure an environment that supports or nurtures your success. You can never gain any measurable progress in an oppressing organization where you are forced to "Dumb down your ambition or ideas" so that you don't "Rock the boat".
Once you find the right fit you will be pleasantly surprised at how fast you achieve your goals. Remember this: No matter how good of a jockey you are, you can't win if you're on the wrong horse and
ON THAT NOTE, do make it a great week!
Christopher Pope of Elk Financial Visits BlogTalkRadio’s “My First Michigan Home”
*FOR IMMEDIATE RELEASE***
December 2009- Mortgage Expert, Christopher Pope, will join Christopher Shaw and Joe N Williams Jr, founders of My First Michigan Home and host of BlogTalkRadio’s “My First Michigan Home” (blogtalkradio.com/myfirstmichiganhome), on December 16th to discuss how first-time homebuyers can improve their credit and utilize the government tax credit.
Boasting six years of experience within the mortgage industry, Pope brings a wealth of insight and information to the December 16th show. Pope is currently employed by Elk Financial, a division of Gold Star Mortgage, Michigan’s third largest broker. Gold Star Mortgage specializes in FHA, Conventional Mortgages, Reverse Mortgages, Commercial, and Loan Modifications. Outside of work, Pope is an avid golfer and a local varsity boys’ basketball coach.
Calls are welcome to join the conversation during the show by calling 1-646-378-1718. The show will also stream live from the host page at blogtalkradio.com/myfirstmichiganhome. “Whether you are a new homebuyer or looking to learn how to improve your credit, Christopher Pope will have something to offer you,” states Christopher Shaw.
An archive of the show will also be available at the same link immediately following the show’s conclusion. Late listeners can also subscribe to the archives via an RSS feed available on the host page or by visiting http://www.blogtalkradio.com/myfirstmichiganhome.rss.
My First Michigan Home and Cheap Metro Detroit Homes are cooperatively run by Christopher J. Shaw and Joe N Williams. With more than two decades in the real estate industry, Shaw and Williams have dedicated themselves to educating potential buyers and sellers on the housing market and navigating the acquisition of investment properties. Their decision to fuse MFMH and CDMH came from a mutually shared belief in the power of teamwork and a desire to create accessible investment opportunities.
To learn more about My First Michigan Home please visit, www.MyFirstMichiganHome.com.
About “My First Michigan Home”
“My First Michigan Home” is an interactive, live Internet talk-radio show that focuses on all aspects of the real estate industry, from buying to selling to everything, and everyone, in between. Hosts Christopher Shaw and Joe N Williams explores specialties and inside information provided by each visiting expert, and encourages listeners to call in with questions at 1-646-378-1718. The stream and archives are available at http://www.blogtalkradio.com/myfirstmichiganhome. The show is live every Wednesday at (6:00 EST). The show is hosted on BlogTalkRadio.
Press Inquiries Contact:
Christopher J. Shaw
My First Michigan Home
16250 Northland Drive Suite 242
Southfield, MI 48075
Telephone: (248) 757-0926
Fax: (248) 569-7637
www.MyFirstMichiganHome.com
www.Michiganpropertyvirgins.blogspot.com
December 2009- Mortgage Expert, Christopher Pope, will join Christopher Shaw and Joe N Williams Jr, founders of My First Michigan Home and host of BlogTalkRadio’s “My First Michigan Home” (blogtalkradio.com/myfirstmichiganhome), on December 16th to discuss how first-time homebuyers can improve their credit and utilize the government tax credit.
Boasting six years of experience within the mortgage industry, Pope brings a wealth of insight and information to the December 16th show. Pope is currently employed by Elk Financial, a division of Gold Star Mortgage, Michigan’s third largest broker. Gold Star Mortgage specializes in FHA, Conventional Mortgages, Reverse Mortgages, Commercial, and Loan Modifications. Outside of work, Pope is an avid golfer and a local varsity boys’ basketball coach.
Calls are welcome to join the conversation during the show by calling 1-646-378-1718. The show will also stream live from the host page at blogtalkradio.com/myfirstmichiganhome. “Whether you are a new homebuyer or looking to learn how to improve your credit, Christopher Pope will have something to offer you,” states Christopher Shaw.
An archive of the show will also be available at the same link immediately following the show’s conclusion. Late listeners can also subscribe to the archives via an RSS feed available on the host page or by visiting http://www.blogtalkradio.com/myfirstmichiganhome.rss.
My First Michigan Home and Cheap Metro Detroit Homes are cooperatively run by Christopher J. Shaw and Joe N Williams. With more than two decades in the real estate industry, Shaw and Williams have dedicated themselves to educating potential buyers and sellers on the housing market and navigating the acquisition of investment properties. Their decision to fuse MFMH and CDMH came from a mutually shared belief in the power of teamwork and a desire to create accessible investment opportunities.
To learn more about My First Michigan Home please visit, www.MyFirstMichiganHome.com.
About “My First Michigan Home”
“My First Michigan Home” is an interactive, live Internet talk-radio show that focuses on all aspects of the real estate industry, from buying to selling to everything, and everyone, in between. Hosts Christopher Shaw and Joe N Williams explores specialties and inside information provided by each visiting expert, and encourages listeners to call in with questions at 1-646-378-1718. The stream and archives are available at http://www.blogtalkradio.com/myfirstmichiganhome. The show is live every Wednesday at (6:00 EST). The show is hosted on BlogTalkRadio.
Press Inquiries Contact:
Christopher J. Shaw
My First Michigan Home
16250 Northland Drive Suite 242
Southfield, MI 48075
Telephone: (248) 757-0926
Fax: (248) 569-7637
www.MyFirstMichiganHome.com
www.Michiganpropertyvirgins.blogspot.com
Friday, December 11, 2009
Seven Ways to Make Home Buying Simple
The home buying process can be very stressful, time consuming and costly especially for those who have not a clue. Today’s market is definitely ripe and ready to devour for the home buyer with low interest rates and the price of homes at an all time low, now is definitely the time to buy. In an attempt to alleviate your stress, save you some time and hopefully some money as well, we have compiled our seven ways to make the home buying process easy hit list.
1. Self Credit Check
First! Order your credit report from all three agencies Equifax, Experian, TransUnion and review it for errors. If there are errors contact the credit reporting agency and have the errors removed. If you have negative items that are correct prepare a letter of explanation for those items to be attached to your file. Lenders are currently looking for a minimum credit score of 620. Avoid making significant credit purchases during this time, such as a car.
2. Assess Your Income
Review your budget. What can you afford in a monthly mortgage? Please do not take the "no money down slogan so literal. You will need some money to “do the deal”. There are expenses associated with purchasing a home such as, earnest money deposits, appraisal fee, home inspection fee (not required but recommended), closing costs, and oh yes, a down payment. Most of which if not all will require CASH from your hands.
3. Financing The Home
Interview several mortgage lenders and brokers to find the best mortgage to fit your needs. Educate yourself on the mortgage options available, both conventional loans and government loans.
4. Real Estate Agent
Seek an agent who will be attentive to your needs. Someone who will not only be diligent in helping you find your new home but will also work hard on your behalf. One who will understand your needs completely and is willing and capable of negotiating the deal.
5. Search For The Home
Make certain that you and your agent are organized in your search for your new home. Take good notes on each home because over time many homes will start to look a lot alike and you could find yourself dazed and confused and wasting time while someone else moves in on your best home.
6. Make the offer
Remember you are not the only buyer searching, and the really good deals do indeed go quickly. So if you find one that really feels right don't hesitate. Be wise though, the price of most homes are negotiable. Sometimes closing costs could be paid by the seller, if you have a good agent they will work hard in this area to re-work the price and or terms on your behalf. However, there is no guarantee that they will succeed. What you achieve in negotiating will depend greatly upon the needs of the seller.
7. Close the deal
You should know exactly what is required of you at closing. You must receive a statement called HUD-1 from the title company stating all the details of the deal including how much you must pay to get the keys.
Without a doubt there is some work involved, however, if you organize your efforts with the above list you will surely save on time, effort and quite possibly a considerable amount money as well. If you have any questions or need assistance visit www.myfirstmichiganhome.com and we'll be happy to assist you.
1. Self Credit Check
First! Order your credit report from all three agencies Equifax, Experian, TransUnion and review it for errors. If there are errors contact the credit reporting agency and have the errors removed. If you have negative items that are correct prepare a letter of explanation for those items to be attached to your file. Lenders are currently looking for a minimum credit score of 620. Avoid making significant credit purchases during this time, such as a car.
2. Assess Your Income
Review your budget. What can you afford in a monthly mortgage? Please do not take the "no money down slogan so literal. You will need some money to “do the deal”. There are expenses associated with purchasing a home such as, earnest money deposits, appraisal fee, home inspection fee (not required but recommended), closing costs, and oh yes, a down payment. Most of which if not all will require CASH from your hands.
3. Financing The Home
Interview several mortgage lenders and brokers to find the best mortgage to fit your needs. Educate yourself on the mortgage options available, both conventional loans and government loans.
4. Real Estate Agent
Seek an agent who will be attentive to your needs. Someone who will not only be diligent in helping you find your new home but will also work hard on your behalf. One who will understand your needs completely and is willing and capable of negotiating the deal.
5. Search For The Home
Make certain that you and your agent are organized in your search for your new home. Take good notes on each home because over time many homes will start to look a lot alike and you could find yourself dazed and confused and wasting time while someone else moves in on your best home.
6. Make the offer
Remember you are not the only buyer searching, and the really good deals do indeed go quickly. So if you find one that really feels right don't hesitate. Be wise though, the price of most homes are negotiable. Sometimes closing costs could be paid by the seller, if you have a good agent they will work hard in this area to re-work the price and or terms on your behalf. However, there is no guarantee that they will succeed. What you achieve in negotiating will depend greatly upon the needs of the seller.
7. Close the deal
You should know exactly what is required of you at closing. You must receive a statement called HUD-1 from the title company stating all the details of the deal including how much you must pay to get the keys.
Without a doubt there is some work involved, however, if you organize your efforts with the above list you will surely save on time, effort and quite possibly a considerable amount money as well. If you have any questions or need assistance visit www.myfirstmichiganhome.com and we'll be happy to assist you.
Thursday, December 10, 2009
Who Really Wears the Pants In Home Buying?
There have been several articles written on the subject of men versus women in the home buying process and “who wears the pants.” The articles address the differences of the two and preferences of each. However, we would like to discuss who does the final decision really hinge on when couples are buying? Previous articles stated that 70% of the couples surveyed stated that the decision was mutual that no one wore the pants. However, in my 13 years in real estate I have found a somewhat different conclusion.
Speaking from my experience there are some things that are equally important to both when it comes to buying a home. Security is one. Quite naturally both want to buy a home in a safe neighborhood. They often agree on the number of bedrooms and how they would use a spare room. And the studies have also revealed that both men and women are concerned with being able to have space to work at home.
One of the differences stated was that women make up their minds faster than men when they have found a home they really like. However, I have found that women are also much more specific about what they want in a home and have a more defined vision of the home of their dreams than men do. By the way, do men even have a dream home? Women tend to be more specific about what they want in a home such as bathrooms and fixtures, kitchen size and functionality (whether they cook or not), closet space for their often more expansive wardrobes and storage space. Men often are not as concerned with the features of the home.
Many years back when I began my real estate career one of the first things that the instructor shared with the class was that you never discuss the details of the deal with just the husband, that you must always have the wife present as well. And when both are present you must be sure to address the wife equally or give equal eye contact. As he went on to share with us how he lost a couple as clients by failing to address the wife equally.
Currently we are working with a couple. The husband called me to give me his search criteria for their new home. It included a 1 ½ car garage, must be 1500 sq ft. and brick. In turn I gave him the list of homes that fit his criteria. A short time later I received a call from his wife who complained that the list was too limited. She then instructed me to change the search criteria to a 2 car garage, less than 1500 sq. ft., brick and frame. Once the search criteria was revised they went from 9 homes to view to 62 homes all with less than 1500 square footage. We are setting appointments to homes from the new list.
Lets face it folks, when it comes to buying a home or matters of the home, women generally hold the biggest keys. Gentlemen, please don't take offense, that’s just how it is. The fact that single women are the fastest growing segment of home buyers, and are leading single men at about 2 to 1 is also an indication that women hold a lot of power when buying a home.
If you have any questions or need assistance in the home buying process visit us as www.myfirstmichiganhome.com and we'll be glad to help.
Speaking from my experience there are some things that are equally important to both when it comes to buying a home. Security is one. Quite naturally both want to buy a home in a safe neighborhood. They often agree on the number of bedrooms and how they would use a spare room. And the studies have also revealed that both men and women are concerned with being able to have space to work at home.
One of the differences stated was that women make up their minds faster than men when they have found a home they really like. However, I have found that women are also much more specific about what they want in a home and have a more defined vision of the home of their dreams than men do. By the way, do men even have a dream home? Women tend to be more specific about what they want in a home such as bathrooms and fixtures, kitchen size and functionality (whether they cook or not), closet space for their often more expansive wardrobes and storage space. Men often are not as concerned with the features of the home.
Many years back when I began my real estate career one of the first things that the instructor shared with the class was that you never discuss the details of the deal with just the husband, that you must always have the wife present as well. And when both are present you must be sure to address the wife equally or give equal eye contact. As he went on to share with us how he lost a couple as clients by failing to address the wife equally.
Currently we are working with a couple. The husband called me to give me his search criteria for their new home. It included a 1 ½ car garage, must be 1500 sq ft. and brick. In turn I gave him the list of homes that fit his criteria. A short time later I received a call from his wife who complained that the list was too limited. She then instructed me to change the search criteria to a 2 car garage, less than 1500 sq. ft., brick and frame. Once the search criteria was revised they went from 9 homes to view to 62 homes all with less than 1500 square footage. We are setting appointments to homes from the new list.
Lets face it folks, when it comes to buying a home or matters of the home, women generally hold the biggest keys. Gentlemen, please don't take offense, that’s just how it is. The fact that single women are the fastest growing segment of home buyers, and are leading single men at about 2 to 1 is also an indication that women hold a lot of power when buying a home.
If you have any questions or need assistance in the home buying process visit us as www.myfirstmichiganhome.com and we'll be glad to help.
Tuesday, December 8, 2009
Claim Your Piece of the Tax Credit Pie
There is great news for those of you who did not take advantage of the $8,000 tax credit previously offered first time home buyers! It is back by popular demand with a few new features. According to the Internal Revenue Service, more than 1.5 million claims were processed from individuals and families who have purchased a home between January and September 2009, The analysts estimate that more than two-thirds of all current homeowners and nearly all first-time buyers will be eligible for the credit extension. Let's take a closer look at how the government sliced the new pie.
Who Qualifies
For first time home buyers purchasing a new or resale home as a principal residence you must not have owned a principal residence 3 years prior to the new purchase. For married couples there is a catch. If one spouse has owned a home within the 3 years prior to the purchase, neither spouse can qualify. However, unmarried joint purchasers can allocate the credit to any buyer who qualifies.
(ex. Mother and son) Note: The credit does not apply to vacation homes or rental property.
Longtime Homeowners
Previously only first time buyers could qualify for the tax credit. Now the program has been expanded to include longtime homeowners receiving a tax credit up to $6,500 (up to $3,250 for married filing separately) for the purchase of a new principal residence. To qualify the homeowner must have lived in the same principal residence for any 5 consecutive year period that ended on the date the replacement home is purchased.
New Deadline
The deadline has been extended to qualifying purchases made After November 6, 2009 through April 30, 2010. The contracts must be binding by April 30, 2010 with purchases completed by June 30, 2010.
Military Members
The tax credit has also been expanded to allow members of the military and certain other federal employees serving outside of the U. S. an additional year to claim the credit.
Qualifying Income Increase
For purchases made after November 6, 2009 and by April 30, 2010 the income limits have been increased to a modified adjusted gross income between $125,000 and $145,000 for single buyers or an (MAGI) between $225,000 and $245,000 for married couples qualifying for the full tax credit. The increased income limit is not retroactive to purchases made prior to November 6, 2009.
How to Claim the Credit
To claim the credit you must file form 5405 with your original or amended tax return.
The credit does not require repayment unless the home is sold or is no longer the buyer’s principal residence within 3 years after the purchase.
New Restrictions
*A purchaser must be at least 18 years of age on the date of purchase.
*The credit cannot be claimed if the purchase price of the home is more than $800,000.
*Dependents are not eligible to claim the credit.
For more information on how to take advantage of the tax credit you should consult with your Accountant or tax preparer or visit www.irs.gov.
Who Qualifies
For first time home buyers purchasing a new or resale home as a principal residence you must not have owned a principal residence 3 years prior to the new purchase. For married couples there is a catch. If one spouse has owned a home within the 3 years prior to the purchase, neither spouse can qualify. However, unmarried joint purchasers can allocate the credit to any buyer who qualifies.
(ex. Mother and son) Note: The credit does not apply to vacation homes or rental property.
Longtime Homeowners
Previously only first time buyers could qualify for the tax credit. Now the program has been expanded to include longtime homeowners receiving a tax credit up to $6,500 (up to $3,250 for married filing separately) for the purchase of a new principal residence. To qualify the homeowner must have lived in the same principal residence for any 5 consecutive year period that ended on the date the replacement home is purchased.
New Deadline
The deadline has been extended to qualifying purchases made After November 6, 2009 through April 30, 2010. The contracts must be binding by April 30, 2010 with purchases completed by June 30, 2010.
Military Members
The tax credit has also been expanded to allow members of the military and certain other federal employees serving outside of the U. S. an additional year to claim the credit.
Qualifying Income Increase
For purchases made after November 6, 2009 and by April 30, 2010 the income limits have been increased to a modified adjusted gross income between $125,000 and $145,000 for single buyers or an (MAGI) between $225,000 and $245,000 for married couples qualifying for the full tax credit. The increased income limit is not retroactive to purchases made prior to November 6, 2009.
How to Claim the Credit
To claim the credit you must file form 5405 with your original or amended tax return.
The credit does not require repayment unless the home is sold or is no longer the buyer’s principal residence within 3 years after the purchase.
New Restrictions
*A purchaser must be at least 18 years of age on the date of purchase.
*The credit cannot be claimed if the purchase price of the home is more than $800,000.
*Dependents are not eligible to claim the credit.
For more information on how to take advantage of the tax credit you should consult with your Accountant or tax preparer or visit www.irs.gov.
Monday, December 7, 2009
ON THAT NOTE
This weeks column is dedicated in memory of the great teacher, mentor and coach who inspired millions of entrepreneurs (including this author) worldwide: Jim Rohn. Mr. Rohn was very unique in his approach, he not only taught profitable business techniques but, the importance of living a whole life as well. In his books, Cd's, DVDs and seminars he always stressed how maintaining a mental, physical and spiritual balance in both your professional and personal life keeps you prepared to recognize and seize new opportunities.
Now that Jim Rohn's tenure on this earth is over; the greatest lesson I've learned from him is: How to live full and depart empty and
ON THAT NOTE, let's do what Jim would love for all us to do,
make it a great week!
JIM ROHN,
SUNRISE-SEPTEMBER, 17 1930
SUNSET-DECEMBER, 5 2009
Now that Jim Rohn's tenure on this earth is over; the greatest lesson I've learned from him is: How to live full and depart empty and
ON THAT NOTE, let's do what Jim would love for all us to do,
make it a great week!
JIM ROHN,
SUNRISE-SEPTEMBER, 17 1930
SUNSET-DECEMBER, 5 2009
Friday, December 4, 2009
Darla K. Rowley Joins Host Christopher Shaw on BlogTalkRadio’s “My First Michigan Home” on December 9th, 2009
**FOR IMMEDIATE RELEASE***
December 2009- Metro Detroit’s premier real estate stager, Darla K. Rowley, will join Christopher J Shaw, founder of My First Michigan Home and host of BlogTalkRadio’s “My First Michigan Home” (blogtalkradio.com/myfirstmichiganhome), to discuss the benefits and marketability associated with staging your for-sale property.
Rowley’s mission is to build beautiful and functional spaces that will inspire buyers, and contribute to a profitable sale. Home Staging is a marketing tool that adds value to the real estate transaction. Rowley’s company, IMPACT! Interior Design Solutions, collaborates with realtors and home sellers to create a business relationship designed to exceed sales goals and sell homes faster.
Questions that will be addressed by Ms. Rowley include:
• What is staging?
• Why is staging important?
• How does staging influence a sale in winter months?
• What are the statistics on home staging?
• Can staging help a short-sale house?
• And more
Calls are welcome to join the conversation during the show by calling 1-646-378-1718. The show will also stream live from the host page at blogtalkradio.com/myfirstmichiganhome. “This show is a must-hear for real estate agents looking to improve their sales and impress potential buyers,” states Christopher Shaw.
An archive of the show will also be available at the same link immediately following the show’s conclusion. Late listeners can also subscribe to the archives via a RSS feed available on the host page or by visiting http://www.blogtalkradio.com/myfirstmichiganhome.rss.
My First Michigan Home and Cheap Metro Detroit Homes are cooperatively run by Christopher J. Shaw and Joe N Williams Jr. With more than two decades in the real estate industry, Shaw and Williams have dedicated themselves to educating potential buyers and sellers on the housing market and navigating the acquisition of investment properties. Their decision to fuse MFMH and CDMH came from a mutually shared belief in the power of teamwork and a desire to create accessible investment opportunities.
To learn more about My First Michigan Home please visit, www.MyFirstMichiganHome.com.
About “My First Michigan Home”
“My First Michigan Home” is an interactive, live Internet talk-radio show that focuses on all aspects of the real estate industry, from buying to selling to everything, and everyone, in between. Host Christopher J Shaw explores specialties and inside information provided by each visiting expert, and encourages listeners to call in with questions at 1-646-378-1718. The stream and archives are available at http://www.blogtalkradio.com/myfirstmichiganhome. The show is live every Wednesday at (6:00 EST). The show is hosted on BlogTalkRadio.
Press Inquiries Contact:
Christopher J. Shaw
My First Michigan Home
16250 Northland Drive Suite 242
Southfield, MI 48075
Telephone: (248) 757-0926
Fax: (248) 569-7637
www.MyFirstMichiganHome.com
December 2009- Metro Detroit’s premier real estate stager, Darla K. Rowley, will join Christopher J Shaw, founder of My First Michigan Home and host of BlogTalkRadio’s “My First Michigan Home” (blogtalkradio.com/myfirstmichiganhome), to discuss the benefits and marketability associated with staging your for-sale property.
Rowley’s mission is to build beautiful and functional spaces that will inspire buyers, and contribute to a profitable sale. Home Staging is a marketing tool that adds value to the real estate transaction. Rowley’s company, IMPACT! Interior Design Solutions, collaborates with realtors and home sellers to create a business relationship designed to exceed sales goals and sell homes faster.
Questions that will be addressed by Ms. Rowley include:
• What is staging?
• Why is staging important?
• How does staging influence a sale in winter months?
• What are the statistics on home staging?
• Can staging help a short-sale house?
• And more
Calls are welcome to join the conversation during the show by calling 1-646-378-1718. The show will also stream live from the host page at blogtalkradio.com/myfirstmichiganhome. “This show is a must-hear for real estate agents looking to improve their sales and impress potential buyers,” states Christopher Shaw.
An archive of the show will also be available at the same link immediately following the show’s conclusion. Late listeners can also subscribe to the archives via a RSS feed available on the host page or by visiting http://www.blogtalkradio.com/myfirstmichiganhome.rss.
My First Michigan Home and Cheap Metro Detroit Homes are cooperatively run by Christopher J. Shaw and Joe N Williams Jr. With more than two decades in the real estate industry, Shaw and Williams have dedicated themselves to educating potential buyers and sellers on the housing market and navigating the acquisition of investment properties. Their decision to fuse MFMH and CDMH came from a mutually shared belief in the power of teamwork and a desire to create accessible investment opportunities.
To learn more about My First Michigan Home please visit, www.MyFirstMichiganHome.com.
About “My First Michigan Home”
“My First Michigan Home” is an interactive, live Internet talk-radio show that focuses on all aspects of the real estate industry, from buying to selling to everything, and everyone, in between. Host Christopher J Shaw explores specialties and inside information provided by each visiting expert, and encourages listeners to call in with questions at 1-646-378-1718. The stream and archives are available at http://www.blogtalkradio.com/myfirstmichiganhome. The show is live every Wednesday at (6:00 EST). The show is hosted on BlogTalkRadio.
Press Inquiries Contact:
Christopher J. Shaw
My First Michigan Home
16250 Northland Drive Suite 242
Southfield, MI 48075
Telephone: (248) 757-0926
Fax: (248) 569-7637
www.MyFirstMichiganHome.com
Wednesday, December 2, 2009
DHS Financial Services Offers 1990 Prices for Tax Preparation Services
**FOR IMMEDIATE RELEASE***
December 2009- DHS Financial Services is pleased to announce that they will be offering their tax preparatory services for the 2009 tax year at their 1990 prices. In recognition of the slow economic times, DHS Financial Services wants to ensure that everyone has the opportunity to have their taxes filed properly and promptly.
As its feature, DHS Financial Services will be offering its tax service in the preparing and filing of your 1040EZ for only $39.00. For those not using a 1040EZ, the 1990 prices will also apply to the 1040A at $59.00 and the 1040 Regular at $79.00.
For 19 years, DHS Financial Services had provided quality, efficient and effective tax and accounting services to over 1,000 individuals. DHS Financial Services offers
• First Time Homebuyer and Tax Credit Specialists
• Mortgage Refinance and Equity
• Credit Repair and Education
• Business Credit Development
• LLC and Corporation Set-Up
• Short Sell and Loan Modification Specialists
DHS Financial Services is a personal and private company dedicated to serving the financial needs of their various clienteles with offices in both Florida and Michigan. Unlike chain tax preparation companies that charge per page and are buried in hidden costs, DHS Financial Services prides itself on being upfront and honest with its consumers.
For more information about DHS Financial Service and to schedule your 1040EZ, 1040A or 1040 Regular tax preparation, please visit www.DHSFinancialServices.com or call 248.569.1486.
Press Inquiries Contact:
Darrick H. Scruggs
16250 Northland Drive Ste 242
Southfield, MI 48075
248.569.1486
dhsfinancialservices@gmail.com
December 2009- DHS Financial Services is pleased to announce that they will be offering their tax preparatory services for the 2009 tax year at their 1990 prices. In recognition of the slow economic times, DHS Financial Services wants to ensure that everyone has the opportunity to have their taxes filed properly and promptly.
As its feature, DHS Financial Services will be offering its tax service in the preparing and filing of your 1040EZ for only $39.00. For those not using a 1040EZ, the 1990 prices will also apply to the 1040A at $59.00 and the 1040 Regular at $79.00.
For 19 years, DHS Financial Services had provided quality, efficient and effective tax and accounting services to over 1,000 individuals. DHS Financial Services offers
• First Time Homebuyer and Tax Credit Specialists
• Mortgage Refinance and Equity
• Credit Repair and Education
• Business Credit Development
• LLC and Corporation Set-Up
• Short Sell and Loan Modification Specialists
DHS Financial Services is a personal and private company dedicated to serving the financial needs of their various clienteles with offices in both Florida and Michigan. Unlike chain tax preparation companies that charge per page and are buried in hidden costs, DHS Financial Services prides itself on being upfront and honest with its consumers.
For more information about DHS Financial Service and to schedule your 1040EZ, 1040A or 1040 Regular tax preparation, please visit www.DHSFinancialServices.com or call 248.569.1486.
Press Inquiries Contact:
Darrick H. Scruggs
16250 Northland Drive Ste 242
Southfield, MI 48075
248.569.1486
dhsfinancialservices@gmail.com
Tuesday, December 1, 2009
A First Time Buyers Guide to Home Ownership
Today’s market has put many in an “urge to buy” kind of mood. Understandably so. It is definitely a buyer’s market with low interest rates, and the price of homes at an all time low. If you're wise you’ll want to buy now too.
Since the demand for buying is high, we thought we would take the time to offer a little advice on how to navigate the process successfully.
First! Review your budget and financial status along with your credit report which are all indicators of your ability to obtain a mortgage as well as how much you can borrow. Consult your mortgage broker or lender to obtain a Good Faith Estimate. We recommend that you interview several mortgage brokers and lenders to make an informed decision on who would best supply your financing needs. Assess whether you have enough money for an appraisal, down payment, closing costs, home inspection (optional but recommended), and homeowners insurance. These are all costs associated with buying a home.
Next assess what your requirements are for a home. Everything from the number of bedrooms and bathrooms to the preferred neighborhood, style of home (ranch, colonial, bungalow) and any other amenities and features that are important to you. This will be absolutely necessary to achieve the maximum service of your real estate agent.
Finally, hire a real estate professional who will not only be diligent in helping you find your new home but will also work hard on your behalf. One who will understand your needs completely and is willing and capable of negotiating the deal. This could take some worthwhile time and effort.
This pretty much summarizes the to do list for buying a home. However, we also felt it essential to mention a couple of things that should not be done when buying a new home.
Prior to closing, most mortgage companies will make certain that you can still afford to buy the home. They will often re-check your most current employment status and credit report. So please! please! Be aware that changing jobs at this point could delay the process. Also do not make significant credit purchases that will increase your debt to income ratio which will then lower your credit score. Too often we have had clients who were qualified for a mortgage, and preparing to purchase the home of their dreams, only to delay or even stop the process because of a significant purchase they made that immediately showed up on their credit report, such as a car!
Another piece of advice we must offer is that you continue to pay all creditors on time. We have also had clients who decided to delay or discontinue paying creditors in an attempt to save more money for the purchase of their new home. Neglecting to pay or slow pay can still have a negative effect during this process and “break the deal”.
Keep in mind that there is much to consider when purchasing a new home. Therefore take the time to consult the professionals and become thoroughly educated about every aspect of this process for your greater satisfaction and success in buying that first home.
Since the demand for buying is high, we thought we would take the time to offer a little advice on how to navigate the process successfully.
First! Review your budget and financial status along with your credit report which are all indicators of your ability to obtain a mortgage as well as how much you can borrow. Consult your mortgage broker or lender to obtain a Good Faith Estimate. We recommend that you interview several mortgage brokers and lenders to make an informed decision on who would best supply your financing needs. Assess whether you have enough money for an appraisal, down payment, closing costs, home inspection (optional but recommended), and homeowners insurance. These are all costs associated with buying a home.
Next assess what your requirements are for a home. Everything from the number of bedrooms and bathrooms to the preferred neighborhood, style of home (ranch, colonial, bungalow) and any other amenities and features that are important to you. This will be absolutely necessary to achieve the maximum service of your real estate agent.
Finally, hire a real estate professional who will not only be diligent in helping you find your new home but will also work hard on your behalf. One who will understand your needs completely and is willing and capable of negotiating the deal. This could take some worthwhile time and effort.
This pretty much summarizes the to do list for buying a home. However, we also felt it essential to mention a couple of things that should not be done when buying a new home.
Prior to closing, most mortgage companies will make certain that you can still afford to buy the home. They will often re-check your most current employment status and credit report. So please! please! Be aware that changing jobs at this point could delay the process. Also do not make significant credit purchases that will increase your debt to income ratio which will then lower your credit score. Too often we have had clients who were qualified for a mortgage, and preparing to purchase the home of their dreams, only to delay or even stop the process because of a significant purchase they made that immediately showed up on their credit report, such as a car!
Another piece of advice we must offer is that you continue to pay all creditors on time. We have also had clients who decided to delay or discontinue paying creditors in an attempt to save more money for the purchase of their new home. Neglecting to pay or slow pay can still have a negative effect during this process and “break the deal”.
Keep in mind that there is much to consider when purchasing a new home. Therefore take the time to consult the professionals and become thoroughly educated about every aspect of this process for your greater satisfaction and success in buying that first home.
A First Time Buyers Guide to Home Ownership
Today’s market has put many in an “urge to buy” kind of mood. Understandably so. It is definitely a buyer’s market with low interest rates, and the price of homes at an all time low. If you're wise you’ll want to buy now too.
Since the demand for buying is high, we thought we would take the time to offer a little advice on how to navigate the process successfully.
First! Review your budget and financial status along with your credit report which are all indicators of your ability to obtain a mortgage as well as how much you can borrow. Consult your mortgage broker or lender to obtain a Good Faith Estimate. We recommend that you interview several mortgage brokers and lenders to make an informed decision on who would best supply your financing needs. Assess whether you have enough money for an appraisal, down payment, closing costs, home inspection (optional but recommended), and homeowners insurance. These are all costs associated with buying a home.
Next assess what your requirements are for a home. Everything from the number of bedrooms and bathrooms to the preferred neighborhood, style of home (ranch, colonial, bungalow) and any other amenities and features that are important to you. This will be absolutely necessary to achieve the maximum service of your real estate agent.
Finally, hire a real estate professional who will not only be diligent in helping you find your new home but will also work hard on your behalf. One who will understand your needs completely and is willing and capable of negotiating the deal. This could take some worthwhile time and effort.
This pretty much summarizes the to do list for buying a home. However, we also felt it essential to mention a couple of things that should not be done when buying a new home.
Prior to closing, most mortgage companies will make certain that you can still afford to buy the home. They will often re-check your most current employment status and credit report. So please! please! Be aware that changing jobs at this point could delay the process. Also do not make significant credit purchases that will increase your debt to income ratio which will then lower your credit score. Too often we have had clients who were qualified for a mortgage, and preparing to purchase the home of their dreams, only to delay or even stop the process because of a significant purchase they made that immediately showed up on their credit report, such as a car!
Another piece of advice we must offer is that you continue to pay all creditors on time. We have also had clients who decided to delay or discontinue paying creditors in an attempt to save more money for the purchase of their new home. Neglecting to pay or slow pay can still have a negative effect during this process and “break the deal”.
Keep in mind that there is much to consider when purchasing a new home. Therefore take the time to consult the professionals and become thoroughly educated about every aspect of this process for your greater satisfaction and success in buying that first home.
Since the demand for buying is high, we thought we would take the time to offer a little advice on how to navigate the process successfully.
First! Review your budget and financial status along with your credit report which are all indicators of your ability to obtain a mortgage as well as how much you can borrow. Consult your mortgage broker or lender to obtain a Good Faith Estimate. We recommend that you interview several mortgage brokers and lenders to make an informed decision on who would best supply your financing needs. Assess whether you have enough money for an appraisal, down payment, closing costs, home inspection (optional but recommended), and homeowners insurance. These are all costs associated with buying a home.
Next assess what your requirements are for a home. Everything from the number of bedrooms and bathrooms to the preferred neighborhood, style of home (ranch, colonial, bungalow) and any other amenities and features that are important to you. This will be absolutely necessary to achieve the maximum service of your real estate agent.
Finally, hire a real estate professional who will not only be diligent in helping you find your new home but will also work hard on your behalf. One who will understand your needs completely and is willing and capable of negotiating the deal. This could take some worthwhile time and effort.
This pretty much summarizes the to do list for buying a home. However, we also felt it essential to mention a couple of things that should not be done when buying a new home.
Prior to closing, most mortgage companies will make certain that you can still afford to buy the home. They will often re-check your most current employment status and credit report. So please! please! Be aware that changing jobs at this point could delay the process. Also do not make significant credit purchases that will increase your debt to income ratio which will then lower your credit score. Too often we have had clients who were qualified for a mortgage, and preparing to purchase the home of their dreams, only to delay or even stop the process because of a significant purchase they made that immediately showed up on their credit report, such as a car!
Another piece of advice we must offer is that you continue to pay all creditors on time. We have also had clients who decided to delay or discontinue paying creditors in an attempt to save more money for the purchase of their new home. Neglecting to pay or slow pay can still have a negative effect during this process and “break the deal”.
Keep in mind that there is much to consider when purchasing a new home. Therefore take the time to consult the professionals and become thoroughly educated about every aspect of this process for your greater satisfaction and success in buying that first home.
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