Keys to Home Buyer Success
1. FIND AN EXPERIENCED REALTOR First, you should understand clearly that Real Estate transactions are LEGAL transactions. You want a trusted, seasoned professional. The fact is you are making an investment that is often hundreds of thousands of dollars and can have a huge impact on the coming years. This is the time to select an experienced Realtor that inspires a sense of professionalism, confidence, and trust.

3. BECOME AN INFORMED BUYER Visit web sites, read the Real Estate section of the newspaper, thumb through brochures, etc. and make it your duty to understand basic Real Estate and Mortgage terms. When your Realtor explains the terms of contracts that legally bind you, you need to have some understanding of this process. Any contract you sign should be done with your full confidence and COMPLETE understanding. Treat your investment with the respect it deserves  and become an active part of  the transaction.

4. UNDERSTAND YOUR NEEDS AND WANTS Create a list of things you value in a home and list those items in order of importance. Somewhere on this list draw a line that separates it into halves: The top half will be your 'needs' and the bottom half will be your 'wants'. Don't comprimise on your 'needs' and put your best effort into obtaining your 'wants'.
 

5.LOCATION, LOCATION, LOCATION! Theclassic rule of buying the worst house in the best neighborhood still applies.If you buy with an eye towards improvement, you can customize the home to fit your needs. Stay focused  on the long-term importance of theneighborhood, schools, shopping, community, etc. BUY A HOME YOU CAN AFFORD  The home buying process can be highly emotional and affect your decision making.  Don't do anything impulsively and give serious consideration to how your lifestyle may change with the purchase of this home. 

6. THE WRITTEN WORD IS LAW Don't make verbal agreements. Any agreement, offer, or counter-offer only exists if it is in writing. 'Understandings' have a way of becoming "misunderstandings". Remember, this is a legal transaction.

7. USE A COMPETENT HOME INSPECTION COMPANY A homewarranty is a service contract, normally for one year, which protects homeowners against the cost of unexpected repairs or replacement on their major systems and appliances that break down due to normal wear and tear.  There is very little legal recourse when a home inspection company fails to disclose all of a property's problems and potential problems. Make sure YOUR Realtor  chooses a reputable company that is acting in your best interest.

8. THE NEGOTIATION PROCESS... Clarify everyone's role in the negotiation process. Not everyone is on your side and you don't want to innocently disclose information to the wrong party (Such as disclosing buying needs, financial abilities, or negotiating stategies with the seller's agent.) As well, be certain that you understand your rights and obligations when you do make an offer to purchase a home. You don't want to back out of an offer and find out you can't get your deposit back, for instance. Your Realtor should be happy to explain these rights and obligations to you---it's in everyone's best interest that informed decisions be made.

9. NEVER USE A DUAL AGENT A dual agent is an agent that represents both the seller AND the buyer. How loudly can you scream,"Conflict of interest!!!"? Your Realtor is your best negotiator, not a friendly 'mediator'.

10. PREQUALIFY, PREQUALIFY, PREQUALIFY... This is the most important of alll. Loan pre-qualifying helps you determine the home price you can afford and presents you as a genuine prospect to the seller. Getting pre-qualified will allow you totake advantage of opportunities as well as  save both time and money!.In fact,it is advisable to get this done before you even look at homes.You'll find out exactly how much you can afford and how well that fits with the amount you would like to spend each month on your payment. Prequalifying first will help make sure that you don't run into any surprises after you've put your heart and time into buying a home and will make buying a home a smoother, more enjoyable event

Trust your realtor to guide you through this process!
 

.
Why Buy Real Estate?

Home Ownership is still the best deal! Owning a home isn't for everyone. But if you want to 
have long term stability, to give your kids a place to grow and prosper, become part of a community, and build financial wealth, owning your home instead of renting it from someone else should be one of your top priorities!
Experts say homeownership still offers the greatest benefit to the most people. If you have a down payment in hand-BUY! Even if you do not have a down payment , home-ownership has never before been so easily within your reach. In recent years mortgage programs have changed drastically now offering numerous no-down and low down payment options as well as adjustable rates, interest only, etc. As long as you have a steady salary, good credit, and few long-term debts, purchasing a home is probably within your reach And by taking things one step at a time, you'll find that buying a home can be a very manageable process. 
Homeownership brings countless benefits. When you make a mortgage payment, you're building equity, which is an investment in your family's future. Owning a home can qualify you for tax breaks that actually lower your monthly out-of-pocket costs. The mortgage interest tax deduction and the equity-building boost. Buyers can deduct the interest component of their monthly mortgage payment, subject to an annual limit. Tax deductions may be as much as  80 % of the payments during the first few years, when most money goes toward interest.
Equity is worth something. Building equity, in turn lets people accrue money for a larger house 
down the road, as well as gain access to funds through home equity loans and lines of credit. 
Even with a modest annual increase in the property's value. 
Homeownership provides the kind of freedom, stability, and security that is attainable in few other ways. Wealth accumulation through homeownership is the key to financial independence and self-sufficiency. 
A home is worth more than money- there's also the heart. 
Most people would still rather own thier own home!

Home Buying Myths

Dispelling the Myths that May be Keeping You From Owning a Home 

Are you short that 20 percent down payment? Have you been in a job lessthan five years? Is that out-of-control college credit card frenzy yearsago keeping you from even thinking about applying for a home loan? If anyof these scenarios ring true for you, it doesn't mean you can't buy a home.  Although rising home prices are making it increasingly difficult forfirst-time homebuyers, more Americans could own a home if they were morein tune with accurate information about the homebuying process and therange of loan products available. 
The 2002 Fannie Mae National Housing Survey reveals that some Americanshave erroneous beliefs about why they can't own a home. 

The survey found the myths are: 
 1.You need 20 percent of the cost up front. Some 44 percent ofadults answered this incorrectly. 
2. Housing lenders are required by law to give you the best possibleloan rates. Among adults, 39 percent believed this is true. 
3.  Thirty nine percent also believed you need to be in the samejob for five years to qualify for a mortgage.
4.  You need to have perfect credit to buy a home. This was theleast common myth with 31 percent of adults believing this to be true. 
5.  Some 36 percent of those surveyed didn't know that mortgageinterest is tax deductible. 
So, to set the record straight: 
Today there are a number of innovative mortgage products offered with5 or 3 percent down payment. Some even offer no-down payment options ifcredit is excellent. The informed first-time buyer will shop around andresearch the various mortgage programs available.  Each lender offers its own rate based on their set of standardsand type of loan (fixed, adjustable, balloon, etc.). Rates change on analmost daily basis. Once you've determined you're ready to buy a house,you'll want to check rates with various lenders on a daily basis. Be sure you're checking fixed rates against adjustable. 
 While job stability is important, you don't need to be working for five years in the same job to get a loan, especially if you have alarger down payment and a good credit history. There are even mortgageproducts for those who are self-employed and have difficulty documentingtheir income - if their credit is good.
  Although your credit history plays a role in whether you willobtain a loan, the good thing is that it doesn't stay with you forever.Once you can establish a pattern of managing your credit wisely, keepingcredit card balances low and paying your bills on time consistently, yourcredit score will be positively affected. Also, those with bad credit scoresmay qualify for CreditWorks, a mortgage program that involves debt management counseling. After 18 months, even those with very low credit scores mayqualify for a conventional mortgage. 
  And finally, when you weigh the financial costs versus the benefitsof buying and owning a home, you'll want to factor in the tax deductions.Closing costs, points, and the mortgage interest you pay each month (whichis a good chunk of your payment unless you've made a huge down payment)are all tax deductible. First-time homebuyers need to educate themselves on what it takes to buy a house and all the alternatives.
 

FinancingYour Home

Getting Pre-Qualified for a home loan:
Before you start looking for a home to purchase, you should find outwhat you qualify for. If this will be your first home or a "transitional home" -- one you plan to own for a short time, an ARM may be the best typeof loan. If it's going to be your dream home or one you plan to raise afamily in, then you may want the stability of a fixed rate mortgage. Ifyou choose an ARM, the index should be based on the Cost of Funds Indexif rates are increasing, and Treasury Bills if they are decreasing. TheCOFI's are less volatile over time than T-Bills; make sure the teaser rateis understood and what the real rate would be. Make sure that you scrutinizeall the closing costs receive a good faith estimate from the lender. Also,make sure there are no prepayment penalties so that you can utilize anaccelerated mortgage plan. A good mortgage reduction plan can save you tens of thousands in interest costs, and shorten your loan term, with only small extra principal payments. If you experience negative changes in yourjob, health, or marital status, you can revert to the standard paymentsin your mortgage contract. The price range of the homes you look at willdepend on this. As a local lending professional, I can guide you throughthe pre-qualification process, discuss your options and make you awareof any special loan programs you may be eligible for which exist in this area. After getting pre-qualified, the most important thing you can dois to go ahead with the loan process and get fully pre-approved beforeyou decide or extend an offer on a home. This will give you advantageswhen you are in the negotiating process. I can arrange to get you pre-approvedfor that home purchase. 
Too Early / Late to Refinance?
 Given the continued slide in interest rates and with the 30-yearfixed-rate mortgage (FRM) averaged 5.87 percent, this is the still thelowest the 30-year FRM has been since Freddie Mac began tracking it in1971. 
"Is it too late to refinance? A absolutely not, as longas it's appropriate for you to refinance, While almost everyone with ahigh rate has already refinanced, most people who will benefit from refinancingnow have had something happen to make refinancing now appropriate. Maybea divorce, needing money for a cabin or education, maybe getting creditcards under control, maybe an old ARM or balloon loan that they'd ratherfix at current low rates. Maybe you have a 3-, 5-, 7-, or 10-year loan,thinking you would move before it changed and now your not so sure aboutthe move. There is a never-ending supply of reasons for people to refinance,and for those people, rates are great now! Timing is less a factor thancommon reasons financially savvy home owners refinance -- to lower monthlymortgage payments, to shorten loan terms, to pay off more expensive andnon-tax deductible debt and for capital improvements or investments likely to give you a better return on your money that the mortgage. Given anyone of those situations, it's almost always a good time to refinance, aslong as the interest cost is deductible 
Whatever the reason, the fundamentals still apply -- refinancing homeowners need to stay put long enough for the new mortgage to pay off in terms ofcovering the up front cost of the refinance. 
That means adding all the costs of refinancing (points, fees, settlementcharges, application fees, appraisal fees, credit report fees, recording fees, title insurance, underwriting fees -- all of them -- and then determining how long it'll take savings from the new mortgage to pay off the refinancing costs. If you'll be in the house for at least a few years, it's worth tto crunch the numbers. Even if you missed rock bottom lowest interest rates.
To determine the payoff duration in months, divide the total refinance cost -- all costs -- by the expected per-month savings. It is also compellingif the refinance rate of a new no cost mortgage (you pay nothing at closingand nothing is added to the loan balance) mortgage is lower than your present rate.