Click Here for My Featured Chart

Click Here for My Featured Chart
This is a great chart to show how housing prices have decreased across the nation from Nov.11 to Dec. 2011. Let me know your thoughts!

Presidential Budget-How it effects homeowners

President Obama rolled out his proposed budget for the coming fiscal year. The part of the budget that catches my eye is that the Mortgage Interest Deduction is on the chopping block. If the Real Estate market has to turn around in order for our economy to turn around why would the President take away the one deduction that makes a difference between renters and home owners? I have not read the entire budget, and I received an alert telling me to be aware of his verbiage in the current draft. We HAVE TO encourage our representatives to have this wording removed from the budget. The only way to remove such an important deduction from the middle class, is to flat tax everyone, so that there is no benefit to being a homeowner.
I believe we are on a slippery slope and as Americans with the right to vote and the right to be heard, we need to be loud and in one voice, that the government needs to look for a budget cut, elsewhere.

Tax Time

It is that time of year again! Time to file your taxes. If you are currently considering purchasing a home a refund can be a great way to reach your down payment goals. Refund money does not have to be in your account for 2 months. A copy of your tax return, showing that the funds are owed to you, and a copy of the bank statement where the funds were deposited.
Don't waste your refund on a big screen t.v. or a new toy, use it to purchase YOUR new home!

FHA to tighten up lending

In an announcement today, FHA is going to update regulations to strengthen the financial outlook of the agency:
"These new regulations strengthen the process by which FHA requires certain lenders to indemnify the U.S. Department of Housing and Urban Development (HUD) for insurance claims paid on mortgages that are found not to meet the agency's guidelines. In addition, the final rule requires all lenders with the authority to insure mortgages on HUD’s behalf ("Lender Insurance" mortgagee) to meet stricter performance standards to gain and maintain their approval status..."
Further in the announcement the regulations discussed fraud, fraud detection, and having lenders be responsible for such fraud. I completely support that idea, but in the past 12 months FHA, Fannie Mae, and Freddie Mac have been able to find what they call fraud on a majority of the files that they own or insure.
I wonder if this is just a way to push unwanted debt onto the banks. If that is the case, the lending world just got a lot smaller.

Have You Called Yet?

We are in the third full week of January. Have you talked yourself out of calling because you don't think you have what it takes to buy a home. Over a third of my clients are always so surprised when they find out that their credit is much better than they thought, and they actually not only qualify, but qualify for more than they thought possible. Don't let another year slip away, call me today, and let's see if you can be in your own home in 2012.

How Do I Save for a Down Payment?

You have made the choice that in 2012 you are going to join the ranks of Home Owners. You are on the right track, but you want to have more money saved, both for the purchase, but also to have money left over for those "just in case" moments. You also want to make sure you can handle the new payment on your home. How do you get there? Sometimes it is easier than others to save. Tax time is coming and if you are going to get money back from the government, that is a great way to kick off your savings account. But what other ways can you save money. As an example if the price bracket you are looking in has an example payment of $1200 per month, but currently you are only paying $900 in rent. I would recommend taking $300 each month and putting it into a savings account. If you can do this and not have to touch that money for at least 6 months, then that new payment will not be a problem for you. You have been making the new payment for six months and you $1800 in savings. Also, the lender can see that even though your rent is only $900, that in fact you have been saving the equivalent of your payment, a great compensating factor for qualification.
Another great way to save is what Oprah calls the "Latte Factor." Do you go to Starbucks everyday? Maybe you aren't a Starbucks person, but there is something you spend money on everyday or several times per week that if you cut down or cut out, you could be saving. Write down everything, and I do mean everything, you spend money on every day for a week. Then see what you can do to stop spending the extras. Are you going out to eat a lot, at lunch or dinner. Think about bringing your lunch to work or cooking at home more often. Both of these options will benefit you more than just in the pocket book. Eating food you prepare at home is not only less expensive it is healthier. You may be able to achieve two Resolutions with one step. For more ideas email or call me. Let's get you on the road to home ownership in 2012.

Detour-Tax Time Tips

In the past few weeks we have seen more and more tax returns that either have errors on them or that what was filed was not the copy given to the client. When having your taxes done, make sure that what is filed with the IRS is the copy you get from your tax preparer. Also, as you sign your taxes, go through them. Make sure your address is correct, that deductions taken are accurate. Once you sign them, you are telling the IRS that they are right.
Also, some times family, friends, or preparers will give us ideas for write-offs that will help us this year, but could effect us in future years. A great example is when you live with a family member and help pay the mortgage. If you take any part of the interest write off on your taxes, then you will not qualify for any first time home-buyer assistance that may be available for the next three years.
Another example is when you take large 2106 expense deductions. 2106 deductions automatically reduce your income when trying to qualify for a mortgage. If you write-off $6000 per year that is $500 per month we have to reduce your income by. That could make or break a purchase transaction.
I hope these tips are helpful, please feel free to email or call me if you have any comments or questions.