Wow where does a newbie start with blogging??? I have heard for a while, "just get out there and try it!" I had the same excuses as a lot of others... What will I write about?? Well to be truthful, I still don't know what to write about, but here goes the first one!
I have looked around the site some and people are writing really personally stuff, very technical stuff, and just all kinds of 'stuff'. So what would someone in my area want to know about? What would I want to tell them about the housing market right now? Well, how about this:
Sellers are selling & Buyers are buying EVERYDAY!
The majority of sellers are still making profits from selling their homes, and buyers are buying while the time is great for them as well. Our properties in this area have not taken the BIG drop in value, as in other places, this is great for sellers. Sellers can sell and are move up to take advantage of the historically low interest rates that we are seeing now. The low interest rates and also the First Time Home Buyer Tax Credit are some of the things making this a great time for buyers now too.
The hardest thing I have experienced in our market during this shift, is financing. Financing isn't as easy to get as it use to be. The following came to me and I feel it is good information for everyone out there who is looking to make a home purchase sometime in the future.
8 Steps to Getting Your Finances in Order
1. Develop a family budget. Instead of budgeting what you'd like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.
2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt-car loans, student loans, revolving balances on credit cards-down to between 8 percent and 10 percent of your total income.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.
4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.
5. Save for a down payment. Although it's possible to get a mortgage with only 5 percent down-or even less in some cases-you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent down payment.
6. Create a house fund. Don't just plan on saving whatever's left toward a down payment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
7. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.
I hope the above is helpful and when you have your finances in order and are ready to make your first step towards home ownership, remember to give me a call.
