LISA ORME, Broker/REALTOR®, ABR, CRS, GRI, PSCS, SFR, Notary Public,

Best Step 1 - Check Your Credit Now

Best Step 2 - Diminish the Debt

Best Step 3 - Stash the Cash!

Best Step 4 - Minimize the Move

You've Checked your credit, Diminished your debt and Stashed some cash! Good for you!

That move into a new home is practically around the corner! To make that move a bit easier, this is a great time to "pare down".

Soon, you are going to have to pack up everything you own. Before you do, it is a great opportunity to make the move a little less stressful--and even a bit less expensive.

This is a great time to take stock of what you own and decide ahead of time if it's going with you to your new home. Waiting until it is actually tim

So, start early to Clear up the Clutter and Minimize your Move. Break the job up into small chunks so it's more manageable. And start making some decisions now. If you don't want to take it with you, Sell it, Gift it, Recycle or Freecycle it, or Donate it.e to move will increase the stress over smaller decisions and force you into making a quick decision that may not actually be the best one.

Sell it: Tag sales, Craig's List, Ebay, community newspapers and bulletin boards are all possibilities. Set any earned money from these sales aside for items you'll need to organize your new home.

Gift it: Friends, family or neighbors may be happy to receive some things from you. If not, try listing usable items that still have good life to them on Freecycle--a great way to get rid of things you no longer want. And people will come to your house to get them!

Donate it: Salvation Army, Good Will, your local shelter, or a local church rummage sale. Save some more money by getting receipts from charitable organizations so you can take the proper deduction on your taxes. (Even if you don't usually itemize on your taxes, you may want to start doing so once you own a home. There are wonderful tax benefits for owning a home.)

Your move into a new home is coming soon, and you are set for success! Only one more "Best First Step" before you actually begin the actual Home Buying process.

Coming Soon: More "Best First Steps" to Getting Ready to Buy a Home

Best Step 1 - Check Your Credit Now

Best Step 2 - Diminish Debt

If you're getting ready to buy a home and you've completed the first two steps above, it's now time to start saving!

Best Step 3 - Stash the Cash!

The no-down-payment loans and some low-down-payment loan programs have tighter requirements than ever before. Trust me, you'll always need a little more money than you think, no matter how much research, planning and preparation you do before buying a home.

Even if you've saved up that 3-1/2 percent down payment for the FHA loan program, or 5, 10, or even 20 percent or more for that conventional loan, KEEP SAVING!

The more surplus you have, the better the loan underwriters will assess your overall qualifications for a mortgage loan. Some loans require that you have at least two months of reserve funds on hand AFTER making the down-payment and paying the expenses of purchasing the home (closing costs, etc), so start setting aside whatever you can, and stash that cash away somewhere you won't be tempted to spend it.

This is one time that MORE is BETTER!

Besides, once you get in that home, there will be plenty of other things for which that extra cash will come in handy. Redecorating, new appliances and other upgrades will be fun and exciting rather than a sacrifice if you set a little extra cash aside now.

So, if buying a home is your American dream, Check your credit, Diminish the debt and Stash some cash!

Coming Soon: More "Best First Steps" to Getting Ready to Buy a Home

Best Step 1 - Check Your Credit Now

You've got your eye on a new home and you've checked your credit. Perhaps you've had to "clean it up" a bit, but now your credit score has been raised and you're ready for the next step.

Best Step 2 - Diminish the Debt

Lenders limit the amount you can spend on housing to a percentage of your total income. What that percentage is depends on what type of loan program you're looking at, and that's a decision to be made when you consult with a trusted lender. But if your total consumer debt exceeds 8% of your income, in nearly every case, the allowable housing payment will be reduced.

So, now it is time to pay down those credit cards or pay off your auto loan if you can.

The best bet is to pay off the items with the highest rate of interest charged against them first, even if they are one of your larger balances. Sometimes the temptation is to pay off smaller balances, because it "feels better" to have a smaller number of payments going out. But if you're really trying to maximize how far every dollar goes, then getting rid of the bills with the larger interest and fees is much more important.

Each time you pay off a particular balance in full, the next month re-allocate the money from that monthly payment and add it to the payment on your next highest interest bill. This one will pay itself off much faster, and before long, your debt load will shrink, and shrink, and shrink some more!

And, once you've diminished your debt, remember, this is not the time to open a new charge card or upgrade your transportation. Even if you know your budget can handle it, these things are best done AFTER the closing on your new home. You've worked hard to get this far...success and a new home are just around the corner!

If you have questions about a debt reduction plan, call me for a free list of resources. Getting your debt load as small as possible is another absolute Best First Step to a successful home purchase.

Coming Soon: More "Best First Steps" to Getting Ready to Buy a Home

Thinking about buying a home now--or in the next two years?

Your best first step: Check your credit NOW!

Why?

1. If there are any negative credit lines on your credit report you need to know about them.

2. Once you know about derogatory credit items, you need to assess whether there are any items that will improve your credit profile if some action is taken on them.

3. There may be items that are incorrectly reported. These may be items that aren't yours. Or they may be duplicate items. Or perhaps a collection account was sold (maybe even more than once) and it appears as the original account, and appears again under the name of the entity that purchased your account.

4. Collection accounts and charge offs can be paid off or settled which will improve their reporting status and your credit score. You may want to get the advice of an expert in deciding which accounts will impact your score the most in order to improve it.

5. Some items may be disputable. If you submit a written request for evidence of the original debt and it cannot be provided within the time frame required by the Fair Credit Reporting Act, the credit bureau is required to remove the derogatory information from your report.

6. Your credit score determines not only whether you can get a mortgage or not, but what rate, terms and programs are available to you.

7. The best time to find out about a "problem" on your credit is BEFORE you start looking for a home. No one wants to get derailed or delayed after they've fallen in love with a home.

Credit issues are by far the biggest cause of buyers' failed purchases. Check your credit NOW to set yourself up for success. This is your absolute best First Step to a successful home purchase.

Coming Soon: More "Best First Steps" to Getting Ready to Buy a Home

Spring has SPRUNG in real estate! You're right, the crocuses aren't out yet, but believe me...it's time to think Spring!

I know, spring doesn't come until March 20th this year, but in real estate, spring is here NOW!

Year after year after year, the highest number of closed sales in Windsor, and even in the entire Greater Hartford region, occurs in the month of March. If you are thinking about selling your home, that is important information.

Since most sales take 45-60 days from signing a contract to closing, closings that happen at the end of the month of March represent homes that were already on the market between February 1st-15th.

Spring has SPRUNG in real estate!

Don't miss the best month of the year to sell your home. Get your home on the market now if you want to be available for the largest number of buyers to be able to consider if your house should be their new home.

Another reason to get that home on the market now is that typically the prices seasonally adjust upward 1-3% in the spring. If you sell your home now, you will stand the best chance to sell it at the highest possible price.

So if you're thinking about selling your home this year, you want to be on the market SOON (within weeks--not months) to ensure the best possible sale.

For exceptional real estate service, call Lisa Orme at The Master's Key Realty. We will be happy to assist you in selling your home for the highest possible price and coordinate with you to arrange the best timing for your sale.