Larry Reaves, "Top Producer"

Preparing for Home Ownership

Deceide how much home you can afford. Generally, you can afford a home equal in value to 2 and 3 times your gross salary.

Develop a wish list of what you'd likeyour home to have and then prioritize the features.

Select three or four neighborhoods you'd like to live in. Considering schools, safety and expansion plans.

Determine if you have enough saved to cover your downpayment and closing costs.

Get your credit in order. Obtain a copy of your credit report.

Determine how large a mortgage you can qualify for.

Organize all the documentation a lender will need to preapprove you.

Do research to determine if you qualify for any special mortgage or downpayment assistance programs.

Calculate the costs of homeownership, including property taxes, insurance, maintenance and any association fees.

Find an experienced Realtor who can help you thgough the process

As indicated some time ago legislation has been proposed to strengthen requirements for condominium associations. This will aid in maintaining condominium values as well as increase consumer awareness.

Major legislation sponsor Representative Scott Brinkman, has proposed changes to sections of the proposed Kentucky Condo Act. The next step is to intruduce the bill in the January 2009 legislative session.

During the rest of 2008 the hope is to educate stake holders and broaden the support base.

More later

Greenhouse emissions are a significant environmental issue. Are you doing your part?

There are changes you can make to reduce the greenhouse emission your household generates. Some are easily done and some not so much.

The use of energy saving light bulbs for instance is easy to accomplish. Adding a solar heating system by contrast is very costly .

Some of the other things you can do include;

Plug leaks with caulk, expanding foam etc could reduce your home's efficiency by 20%.

Turn off computer, chargers, etc.. when not in use.

Replace appliances with more energy efficient models.

Lower water temperature.

Updating to a tank-less water heating system.

There are a wide range energy saving ideas ranging in cost and results.

Do your part to help anywhere you can.

Home Mortgage rates are driven to a large extent by supply and demand. The more demand for Mortgages the higher the rate.

Recent actions by the Fed to stimulate economic growth by lowering the Discount Rate have helped to improve Wall Street's confidence in the economy which in turn tends to increase Mortgage rates. In times of strong economic growth the Fed may increase rates to curb inflation which would tend to lower Mortgage rates.

During this last week Mortgage rates dropped and then rebounded as demand for Mortgages increased. Folks were trying to take advantage of the lower rates to refinance their higher interest rate Mortgages thus increasing demand for mortgages and increases in Mortgage rates.

A more accurate gauge of where Mortgage rates may be going is 30 Year Treasury bonds. These bonds are driven more by Wall Street movement and less on the Fed's Discount Rate.

Confusing? Check with your Mortgage consultant for more information on impact to you specifically.

Don't let poor maintenance affect your home's value.

Keep your furnace filters clean to increase efficiency and possible repairs

Drain your water heater once a year to remove harmful sediment.

Clean coils on baseboard heaters.

Check circuit breakers and replace weak breakers to prevent shorts.

Check under sinks for leaks to avoid water damage.

Replace major mechanicals before they go bad to prevent costly emergency repairs.

Check outside of your home to make sure there are no leaks from loose gutters, missing or damaged flashing, missing or damaged weatherstripping. Also check for standing water around foundations, cracks in foundations or missing splash blocks on downspouts.

Make your house last longer, retain more resale value and prevent costly repairs that could have been prevented.