Before You Buy... Are You Ready to be a Homeowner?

Buying a home is one of the most exciting events in your life and is likely to be the most expensive purchase that you will ever make. Before you make a commitment, make sure you are ready. Avoid the pressure to buy a home that you cannot afford. Here are some things to consider:

• Are you ready to be a homeowner? It is critical that you consider whether you have saved enough money to support a down payment in addition to your other debts. You must have job stability and a steady income.

• How long do you plan on living in your home? Real estate is not always an investment. No one can predict what will happen with your local housing market. If you plan to sell your home in the next few years, realize that the property may not increase substantially in value or may have actually lost value. You may ultimately owe more to pay off your mortgage than your home will be worth.

• What is your estimated monthly payment for the home? In addition to the monthly payment for principal and interest, you will have to pay for taxes and insurance and possibly homeowner association dues. If your down payment is less than 20%, your lender may require that you pay the added expense for mortgage insurance.

• What are the other costs of owning a home? Be realistic about the costs of owning a home like heating and cooling and other utilities. You will generally need to budget for repairs and routine maintenance of your home, especially if you buy an older home.

• What can you afford? Be confident that you can make the monthly payments. 

• Have a financial plan and make a budget. Do you have a steady source of reliable income to pay your mortgage should your interest rate increase in the future? Consider how many long-term debts you have such as car or student loans, as well as credit card bills. 

• Have you talked with a housing counseling agency? Housing counselors can be very helpful, especially for first-time home buyers. The U.S. Department of Housing and Urban Development (HUD) supports housing counseling agencies throughout the country that can provide free or low-cost advice. You can search online at HUD’s web site, or you can call HUD’s interactive voice system. This contact information can be found below. 

After answering the questions above, have you determined that buying a house is right for you?  If so, congratulations! It's time to start shopping for a house and a loan. Be sure to utilize the services of a reputable Realtor and Lender to help guide you through the home buying process.

U.S. Department of Housing and Urban Development
451 7th Street, SW
Washington, DC 20410
202-708-1112
http://www.hud.gov

HUD Housing Counselors
1-800-569-4287 (Interactive system)
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

source: HUD's Settlement Cost Booklet

Confused about the Home Bying Process?

Take a look at this graph from HUD's settlement Cost Booklet that takes you from Step 1 Determing what you can afford to Step 12 Move into your new home. Be sure to interview and sellect a qualifed Realtor and Loan Officer to guide you through the process for a smooth and successful home ownership experience!

Help for Distressed Homeowners

I’ve been listening to the news media and reading many articles lately, and I honestly believe we have many reasons to be optimistic about housing. Foreclosure filings are down and the inventory of homes on the market has been declining over the past few months. Mortgage lenders are reporting historically low interest rates plus home prices are beginning to stabilize. It won’t be an overnight recovery, but there is progress - however fragile it may seem.

Legislators need to focus on helping families who are struggling and do whatever they can to keep properties out of the foreclosure market. Easier financing through the Home Affordable Refinance Program (HARP) is an important indicator that we are going in the right direction. Many homeowners who have been forced to cut back due to job loss, medical issues, or decreased income because of company cutbacks can save hundreds of dollars a month on their mortgage payments due to the refinancing ability offered by this program. This initiative plus lower interest rates can make their home affordable and decrease the liklihood of a short sale or foreclosure. However, a major obstacle is educating distressed homeowners of this program and its benefits.

Housing affordability issues are particularly important in today’s marketplace. Legislators must continue to help through programs such as HARP or they risk hurting the economy even further depending upon the decisions they make on housing. Today it is imperative that our representatives in Washington DC hear the message that housing needs focused attention to help our struggling economy begin to recover. Please contact your representatives and let them know the American Dream of homeownership does matter.

As a Realtor, I’ve seen clients and friends lose their homes to foreclosure and seen firsthand the devastation this causes to morale and self-worth. In my opinion if a homeowner has the reasonable ability to pay their mortgage, there is no more important goal than keeping them and their family in their homes. In those cases where homeowners do not have the reasonable ability to pay their mortgage because of unemployment, illness or other personal challenges, a short sale should be the first consideration. Streamlining of the short sale process by major lenders is allowing this option to be more fully utilized. As in the HARP program, one challenge to short sales is educating homeowners in distress about this option. Many lenders are now being proactive in contacting homeowners who are at risk of default and discussing this alternative to foreclosure. Many realtors are taking continuing education classes to help them understand and become more proficient in the short sale process so they can effectively guide their clients through it. It can be a lengthy process with obstacles to overcome, but it is a viable option to simply walking away and allowing the home to go into foreclosure.

If you are struggling with your mortgage payments or know someone who is, contact a reputable Realtor or loan officer for help. You don’t have to face this fight alone and there are viable options to foreclosure. We are here to help.

Home Inventory in the Memphis Area shows slight increase while pending sales are down for the week ending August 10, 2014

MAARket Snapshot

 Pending sales recorded and total active listings according to the Memphis Area Association of Realtors (MAAR) MLS and change from previous week, for the week ending August 10.

Pending Sales
TOTAL:  164     |    CHANGE:  down 1.8%

Active Listings
TOTAL:  6776    |    CHANGE: up .3%

For the comprehensive July Market Report: » Get the current MAAR Market Report

Click the link below for 47 simple solutions to make painting easier.  Most of these I had never thought of or seen before. Things like cutting the side out of a plastic milk jug for a paint holder with a built-in handle and paint brush holder. Most of these I had never thought of before.



47 Tips and Tricks to Ensure a Perfect Paint Job

6 Keys to Selling your House

Every homeowner’s dream is to sell their property quickly and for the best possible price. The more time a house sits on the market, the more likely it is that the price may have to be lowered in order to attract interested buyers. So your job is to make your home as appealing as possible. It might take a little bit of elbow grease, but it will be worth it when your house sells faster than the ones already on the market.

Here are some areas to focus on so you don’t lengthen your sale by overlooking the basics.

1. Clean. Every corner of your house needs to sparkle. The appearance of a dirty home will turn off most buyers. Hiring a cleaning service to scrub kitchen and bathroom floors, dust and polish all woodwork, and clean carpets is well worth the cost.

2. Odors. You have to eliminate bad smells, not just mask them. Remove the source of the odor if possible (carpets, trash, litter boxes), and use enzyme cleaning products. Pet smells are so pervasive, some sellers even board their pets while their house is for sale.

3. Light. People like light and spacious, not dark and cave-like. Clean your windows and keep them clear of trees or shrubbery. Remove blinds and drapes to clean them thoroughly. Increase bulb wattage in areas where you need more light.

4. Repairs. Prospective buyers like to make sure everything in the house works. They will turn on lights, open drawers and test faucets. Fix or replace broken or missing hardware, grease hinges and joints, repair cracked caulk, and make sure your outlets work.

5. Clutter. Potential buyers don’t want to see your stuff. They want to envision their belongings in your house. Make your decor as impersonal as you can. Bonus: minimal furnishings can make your home appear bigger.

6. Curb Appeal. If you don’t have it, buyers will drive right on by. The National Association of REALTORS® estimates that adding curb appeal can boost your sale price by up to 4 or 5 percent. Keep the lawn and garden neat, add some potted plants, repair cracks in the driveway, use a power washer or even repaint your exterior.

Protect Your Possessions with a Home Inventory

We pay for home insurance to protect our homes and possessions in case of burglary, damage or fire. But if calamity were to strike and you should need to recount what was lost, would you be able to remember everything? To save yourself the worry and the trouble, take time now to create a home inventory. This can help you keep track of everything you own, and it speeds up the insurance claims process.

The best way to create a thorough inventory is to physically walk around your house from room to room and build your list. Take pictures of everything, including serial numbers and receipts where you can. For each item, try to include a description, when it was purchased and an estimated value.

There are a variety of tools available to help you. You can simply write everything down in a notebook, create a spreadsheet (Microsoft Office has templates online), or use one of the new inventory apps on your computer or smartphone. The Insurance Information Institute and the National Association of Insurance Commissioners offer free apps with secure online storage. Many insurance companies have their own apps, as well. The best tool is the one that you will actually use.

Creating an inventory now isn’t difficult, though it can be a little time-consuming. But it is well worth the effort, and if disaster strikes, you’ll be thanking yourself later.