Randall Filbert- Filbert Real Estate Team

Think you aren't qualified to buy a home? Maybe you should get a second opinion!

The media has done a great job of putting the word out that the real estate market has suffered during the last 2 years. What they haven't done is talk about what a great buying opportunity this has created for many potential home buyers across the country.

With interest rates still very low (but expected to go up this year), the $8,000.00 First Time HomeBuyers Tax Credit (which has been extended and now includes up to $6500 for certain move-up buyers who have owned their primary residence for the last 5 years), and low sales prices in most communities, the time has NEVER been better to buy a home!

In addition to these advantages, many communities are offering additional incentives thru community revitalization programs in an effort to improve economic and housing conditions in their local markets.

With interest rates at all time lows and deals on properties everywhere, you can't afford not to buy! The real estate market is full of Short sales and Foreclosures making NOW THE TIME TO BUY!

Happy house hunting!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

As the availability of credit continues to be tight (it could get tighter!) having a good credit score is now more important than it has ever been and having a low credit score will carry with it a variety of costs both tangible and intangible. Think about it from the bank's perspective, many people want to borrow money from you and you have limited funds to lend so you are going to choose to loan your money to people who demonstrate lower risk variables (ie. those with a longer history of responsible repayment and thus maintain higher credit scores).

Of course there is the tangible cost of obtaining credit that costs you, the borrower more because of the higher interest rates and fees associated with these loans. On a home purchase, this can amount to 10's of thousands of dollars over the life of the loan.

There are also less tangible costs like 'opportunity costs'. Simply not being able to purchase a home in this favorable buyer's market because your credit score does not make the grade could potentially cost you the 'opportunity' to own a home and thus benefit from all of the advantages of being a homeowner. This missed opportunity could also equal 10's of thousands of dollars over your lifetime. Missed appreciation, fewer tax credits, etc.

The credit crisis is expected to last for some time and recovery will be slow. This means that bowwers with less than good credit scores (those below about 680-700) will continue to have a more difficult, more expensive time obtaining the credit thet they need.

Focus on building your credit folks....it'll cost you big time if you don't!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

Foreclosed properties are no good for anyone (except perhaps buyers). Banks lose money, homeowners lose their homes, neighbors and neighborhoods lose value and equity. Many homeowners see their dream of owning a home go up in smoke.

How do we in the Real Estate industry help stop this snowball from tumbling out of control?

The road to foreclosure is long and there are many obstacles in the way. It can take a year or more for a property to go into foreclosure status. These obstacles create opportunities for us to help our clients work out a solution before the foreclosure process is complete.

- Get involved with your clients as soon as you sense trouble.

-Make them aware of options including Short Sale, Loan Modifications, house swapping, bringing in a roommate, renting their house out and moving in with family.

There are many variables looming over the housing market to suggest that recovery (for most areas) is still a way away. The unemployment rate is most often overlooked by the so called "experts". If homeowners don't have jobs, then foreclosure is inevitable. We must all focus on creating jobs with which mortgage loans will be repaid thus slowing the foreclosure rates!

Lobby your Senators and Congressman to encourage the government to focus on creating jobs. They've spent alot of time lately focused on Health Care, Bank Bailouts, Auto Maker bailouts, etc. If we don't do something to turn this housing market around this is what could happen:

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the mortgage and real estate markets. These are my opinions and should not be regarded as factual data.

Mortgage interest rates are again at an all time low and, with housing prices expected to increase slightly in 2010 (analysts have predicted 3-4%), a generous Tax Credit available to many home buyers, Now may be the best time to purchase a home. Take a look at the historical chart below and see how national average Mortgage interest rates have fallen over the last several years.

These low, fixed rate interest rates increase a buyer's purchasing power without the volatility of an Adjustable Rate Mortgage. While it is very difficult to predict interest rates (especially for me as my Crystal Ball no longer works!), most indicators and economists suggest that interest rates will begin rising soon. There are also indications that some loan programs, including FHA, will begin tightening their lending criteria even more in the coming year. The combination of these factors will, most likely, create a less favorable environment for many home buyers to qualify to purchase a home.

I strongly encourage prospective home buyers to act Now rather than to wait for conditions within the housing market to deteriorate any more thus making it more difficult to buy a home.

If you are a real estate agent share this information with your clients who may be on the fence about buying now. You will be educating your clients and helping them avoid a potentially costly mistake by waiting.

Happy house hunting!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the mortgage and real estate markets. These are my opinions and should not be regarded as factual data.

Are You Financially Fit? Give yourself a Financial Physical

Just like an "annual physical" with your doctor, it is equally as important to get a "financial physical" to make sure you are using your money to your optimum advantage. The following observations and questions are designed to get you thinking-thinking about how you can reduce your living expenses, improve your cash flow, pay down debt, or put money away for a rainy day.

Every household budget has some room for improvement but they can vary based on your needs, family size, lifestyle, etc. First, start by reviewing your monthly expenditures to find areas where you can trim some fat.

Recently I looked at my monthly budget and found several ways to reduce my monthly expenses and thus, create more opportunity for reallocating this extra cash flow for optimal usage. I examined my utility bills and decided that I could save quite a bit of money by reducing certain services. I saved $50 per month by reducing my family cell phone plan. I found that I had not been using as many minutes as I was paying for and in fact was "rolling over" 3-4000 cell minutes every month. As long as I keep an eye on monthly usage and don't go over my limit, I should be able to maintain this savings.

Next, I cancelled my home phone land line, which was primarily used to send faxes. This saved me about $40 per month. Now, I simply scan the documents that I used to fax and email them. I also found that by reducing my cable TV plan to a lesser package I could save another $30 per month and not miss a thing. I then reduced my home Internet service from a "super high speed" package to a standard high-speed package and saved an additional $25 per month. Truth is, I never noticed the difference in Internet speed anyway....

Natural Gas costs have been reduced in our area recently and, together with reducing the thermostat a degree or two, I expect to save an additional $25-30 per month. So far, the total monthly savings for my family amounts to about $180-$200 depending on the month. I have put this extra cash flow towards paying down debt and thereby reducing my interest charges every month (thus saving more money!). I just made $200 magically appear in my budget!

There are a few areas in my family's budget that I hope to address in the near future (namely, our health club membership that costs $75 per month and no one in the family really uses). I will have more on this topic in the coming weeks because I am seemingly addicted to finding new ways of saving money.

What can you do to reduce your living expenses and optimize your monthly budget? If you have any ideas about saving money, please share them with us!

Author: Randall Filbert, MPA www.LendingIdaho.com www.FamilyGuideToFinances.com

This blog's intention is to provide inspirational stories as well as historical accounts and insight into matters concerning the mortgage and real estate markets. These are my opinions and should not be regarded as factual data.