Wayne Frazier

another computer crash. I'm finally back up an fully operational after nearly 3 weeks of we think it's this, we think it's that, the parts we brought were bad, yada, yada, yada!!!!!

I was reduced to working off of nothing but my laptop which is not completely set up to run an office.

I also found out that my back up external hard drive was not BACKING UP like it was supposed to. Got that fixed now also, hopefully.

I was seriously contemplating throwing the entire computer and the technicians in the pool.

But, then I would have had to paid for data recovery and human rescue services...lol

So this is my rant and now it's time to get back to work.

There are many things that you can do to prepare yourself for one of the most important financial dicision most people will make in their lifetime.

1. Self Analysis - Take a good look at where you are in your life and decide if you are truly ready for the responsibility of becoming a homeowner. This is a typically a long term Monetary Commitment and requires financial maturity.

2. Budget Analysis- This goes hand in hand with #1. Really analyze (write out) your entire monthly budget including ALL repetitive expenses. Don't forget the things that are paid for quarterly, semi annually, and annually. Also, make sure you factor in fun / entertainment money and such. This will help you to really determine what it is that you can comfortably afford. You want to enjoy your home, not look at it as a ball and chain dragging you down.

3. Homeowners Education- Although not normally mandatory for a loan, in some instances it is and I believe it will be required more as time goes by. There are many Home Ownership Counseling programs available, some are free, others have a nominal cost. This is well worth it for the (FTHB) First Time Home Buyer. You should be counseled in the various aspects of what being a homeowner entails, finances, the Home Buying Process and how to react should a crisis rear its' ugly head. You will usually be given a Certificate of Completion, keep it in a safe place because you may need it for your home financing. Also, make sure the agency providing the counseling is HUD approved. This can be done by going to http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm for an updated list covering your area.

4. Familial Requirements - What do you and your family require in a home. From Bedrooms to Bathrooms and room sizes to yard size, nearby educational facilities, available recreational facilities / areas, to every day storage, specialty needs/ requirements, etc... Better to think this out now then to have to live with a not so adequately equipped home, or to have to modify the home. Unless this was taken into consideration before hand.

5. Credit Analysis- Get copies of your Credit Reports from the 3 main Credit Repositories, Trans Union, Experian, and Equifax. Go over them with a keen eye for inaccuracies and dispute any information that you feel is not reported accurately or is not yours. Don't wait until the last minute to do this because it takes time to get things resolved if need be. Do this early in the process, months ahead of time if possible. Trust me, this could have huge consequences when applying for a home loan regarding your ability to qualify and your interest rate among other things.

Many times you can obtain them for free from www.annualcreditreport.com, or you can contact the Bureaus directly via the phone, internet, or in writing. Different States have different laws regarding the requirements for Free Credit Reports to be provided by the Repositories. In Maryland you are entitled to one FREE Credit Report from each of the Bureaus, once per year.

The three main Bureaus contact info is as follows:

Trans Union - P.O. Box 2000 Chester, PA 19016 --- (P) 800-916-8800 --- Website: www.transunion.com

Equifax - P.O. Box 740256 Atlanta, GA 30374 --- (P) 800-685-1111 --- Website: www.equifax.com

Experian - P.O. Box 2002 Allen, TX 75013 --- (P) 888-397-3742 --- Website: www.experian.com

6. Get Pre-Qualified - Seek out a competent professional Loan Officer. Whether it be a referral from a family member or friend, or just good old fashion research and homework.

A good Loan Officer spends time assessing your situation and NEEDS thru extensive questioning. Answer truthfully and don't try to hide anything. They can't properly advise you unless THEY are fully informed.

They should be willing to tell you bad news just a quick as good, be in tune with the CURRENT market conditions, NOT necessarily what you hear on T.V. or the radio, and be accessible. They should respond to your attempts at contacting the within a reasonable amount of time. Bare in mind, you aren't their only client but they should be fairly easy to communicate with.

Getting pre-qualified will enable you find out what type(s) of loan(s) and terms you are able to obtain and assist you in determining what price range you should stay with-in. No point in looking at things you can't or won't buy. Saves yourself and your Real Estate Agent time, gas, and emotional distress. Remember what I said earlier, it not just what you qualify for, it's what you're comfortable paying. See more on this in my blog at http://activerain.com/blogsview/687453/Just-because-you-can.

7. Pick a Real Estate Agent- A good knowledgeable Agent can be of immense help throughout the Home Buying process. Take the time to find an Agent via referrals from Family, Friends, or your Loan Officer. Loan Officers work with agents all the time and should be able to offer up some assistance in this matter, or as I said above, good old fashion research and homework.

A good Agent will have knowledge of the area, keep your desires in mind, show you homes you're interested in and NOT just what they're interested in selling, help you evaluate asking prices, facilitate negotiations, draw up contracts, and help with inspections etc...

One final note, a Real Estate Agent should NEVER quote an Interest Rate or Closing Costs to you. I can't tell you how often I've seen this happen throughout the years and it is NEVER accurate. This is the job of your Loan Officer. Hence, the Pre-Qualification.

I hope you've found this information helpful and informative.

If you have any further questions, feel free to ask.

When speaking with potential Home Purchasing borrowers one of the first things I always ask after gathering some basic financial info is "What do YOU feel you can comfortably afford for a monthly housing payment?".

Because it matters not what I can qualify you for, it only matters what you can afford. This question also serves to tell me if the borrower has realistic expectations from the start.

You see, If I can qualify someone for a $1800 per month house payment but they feel they can only handle a $1400 per month payment, it will allow me to better assist them by ringing out the numbers and to advising them as to the Price Range that they should not exceed. I say price range because several other factors will effect the TOTAL payment. (i.e. Condo Fees, HOA Fees, Ground Rent, Taxes, and Insurance etc...)

This assists their Real Estate Agent as well, because there is no point in showing someone a home that they could never comfortably afford. Thereby saving time, emotion and fuel for everyone involved.

Now the other reason for this question regarding expectations is as follows. All to often I speak with clients that when asked" What can you afford." they give me an answer that on some occasions is clearly out of the realm of their financial capabilities. I've been told, "I don't want to go over $1500 per month." when in reality they will not be able to qualify for anything close to that number. I then have to educate them regarding debt to income ratios and enlighten them about a budget plus the additional cost of home ownership. When finished we go over what the max is that I am able to qualify them for, but none the less, THEY still must be comfortable with the monthly payment. Which in this scenario, usually is a problem because it is less than they initially anticipated.

The moral to this story is simple, You can only afford, what you can afford. Typically everybody has the ability to stretch themselves a little bit when purchasing something they really want. But in most circumstances you are looking at a LIFETIME financial decision and would serve yourself well to really evaluate ALL of your finances to make sure that 18 months down the road you are not regretting your previous financial decision.

You want to enjoy your new home, not worry about losing it every month.

I would encourage anybody interested in seeking financing to first sit down and thoroughly fill out a Financial Statement / Budget, so you can better decide as to what it is that you really can afford.

If anyone needs a budget form to fill out just email me and I will be more that happy to send it to you.

Please take a moment today to think about the great loss and suffering so many endured on that tragic day.

My heart goes out to all those effected.

God Bless each and every one of them.

I leave you with a favorite quote of mine.

"I pray that our Heavenly Father may assuage the anguish of your bereavement, and leave you only the cherished memory of the loved and lost, and the solemn pride that must be yours, to have laid so costly a sacrifice upon the altar of Freedom. Yours, very sincerely and respectfully, A. Lincoln."

Chairman Barney Frank and HUD Secretary Preston have come to an amicable agreement regarding the continuation and use of Down Payment Assistance Programs.

HUD never liked Down Payment Assistance, but did want Risk Based Pricing to allow them to better manage FHA's overall security when Insuring Mortgages. This risk based pricing was and still is, to go away October 1st, 2008. Reverting back to the original standards set for insuring FHA mortgages.

Barney Frank has always supported Down Payment Assistance Programs (DPA's) and thought they had a place in the market to help those desiring to purchase a home of their own and live the American Dream, even when it seemed to be out of reach due to the lack of neccessary funds, i.e. Down Payment, needed to close / settle.

It appears that they have agreed to some terms that will allow Risk Based Pricing and the use of Down Payment Assistance.

Chairman Franik said he believe the New Bill will pass the House with know problem since it is now supported by the HUD Secretary Preston.

It must still be submitted to the Senate and Passed, then reconciled, and ultimately signed into law by the President.

None the less, this is some great news regarding the future of Down Payment Assistance.