My New Blog

A great article by a fellow Realtor Tara-Nicole Nelson in the Trulia website identifies five things you should do now to prepare yourself to buy a home in 2010.  Basically they are the following:

1. Minimize holiday spending and save your cash!: I know this is easier said than done, but if you are serious about home ownership next year, you can do without the cashmere sweaters and gifts others will end up taking back after Christmas day anyway.  You should even scale back on the kids, putting more money away for that downpayment and spend more quality time with the kids and find ways to entertain as a family in exchange for gifts that have a shorter value.  A less materialistic holiday season wont really hurt anyone and who can argue against it.  Besides, the lower home prices and interest rates wont last forever.  Take the savings from your thriftiness and sock it away for that down payment and you'll benefit so much more in the long run by having a larger downpayment.

2. Research financing, neighborhoods, and prices on-line.  During these long winter days and nights, spend time on-line understanding what loans are available, what is required to qualify for these low interest rates, and identify who you would consider to work with in financing your next home.  Or call me for suggestions on who you might work with.

Decide where you would like to live in the future and find out how much homes in that area are selling for.  Are you being realistic in what you can afford vs where you would like to live?  You can find ratings on some neighborhoods and schools on line, or again, you can call or email me and I will be happy to assist you with this kind of information.

3.Rehab your credit if you need to. Go to annualcreditreport.com to check out your credit reports.   Audit them for errors and dispute any inaccuracies.  These errors can cause you to be disqualified for some preferred financing programs if they are not cleared up.  Also, don't close any accounts, even if you are able to pay some down or off.  These accounts support a positive credit history and your ability to earn and pay-off credit.

4. Spend some time running your own numbers.  Get your monthly finances in order for a clear read on your bills outside of housing.  Also, determine how much cash you will have available for a downpayment when you are ready to act.  This will allow YOU to determine how much house you can afford and not go by some "formula" the mortgage company says you can afford.  You must determine your comfort level.

5. Finally, speak directly with a mortgage broker and Realtor (me!) about putting an action plan together that works with your comfort level, affordability, and time table, so as a team, we can work together toward getting you into a new home you will be comfortable and happy with for years to come.

Please feel free to contact me to review and discuss all or any one of these steps now so we have a solid plan in place to get you into your next "dream home" in 2011.

Have a safe and happy holiday season.  I look forward to working with you in 2011!

Mike