Tuesday, September 8, 2009

The Ten Commandments for Financing a Home.

1. Thou shalt not change jobs, become self-employed or quit your job. Longer employment time shows stability and a reduced likelihood of default.

2. Thou shalt not buy a car, truck or van (or you may be living in it)! This will increase your debt to income ratio.

3. Thou shalt not use charge cards excessively or let your accounts fall behind. This shows poor money management and an increased risk of default.

4. Thou shalt not spend money you have set aside for closing. It costs money to borrow money - make sure you have enough.

5. Thou shalt not omit debts or liabilities from your loan application. This is tantamount to fraud - never a good thing!

6. Thou shalt not buy furniture or other big ticket item on credit. Like buying a car, this increases your debt to income ratio.

7. Thou shalt not originate any inquiries into your credit. The algorithm is a secret but you'll get dinged a few points for most inquiries.

8. Thou shalt not make large deposits without first checking with your loan officer. Money needs to "season" in your bank account, typically for 60 or more days.

9. Thou shalt not change bank accounts. A strong banking history, like a strong employment history, shows stability.

10. Thou shalt not co-sign a loan for anyone. Like buying cars or furniture, this increases your debt to income ratio.

Brought to you by:
Sharon Evans, RE/MAX Town & Country
Dee Estrada
Senior Loan Officer
Office 404-574-2629
Cell 678-462-5223

Monday, September 7, 2009


Top 7 Reasons to Buy Your First Home Today

1. Free Money. The $8,000 tax credit for first time home buyers is valid before December 1, 2009. This is a special tax credit from the government that you don't have to pay back, as long as you stay in the home for at least 36 months.

2. Affordability. Based on recent property declines and current interest rates, home affordability has not been higher since it was first tracked over 40 years ago. Your grandparents couldn't have received a better interest rate than you can today.

3. Tax Breaks. The IRS allows you to deduct the interest you pay on your mortgage, your property taxes and, in many cases for those who qualify, some of the costs to buy your home and mortgage insurance. Owning a home is a great way to lower your tax bill.

4. Build Wealth. Unlike paying rent, with each mortgage payment you make, you build equity and you decrease your income tax liability. Owning a home is still the best long-term investment.

5. Appreciation. As home prices have fallen precipitously in today's tough economy, the basis for realizing appreciation in future years is very strong. Historically, even with other periods of declining value, home prices have exceeded consumer inflation. From 1972 through 2005, home prices increased on average 6.5%, according to the National Association of Realtors®.

6. Stability. Knowing you can establish roots and raise a family in one location, free of the desires or needs of your landlord to sell the property you are living in. This is something no other investment provides. You can't live in a stock, and you can't raise your kids in a bond.

7. Independence. Enjoy the freedom to do what you want to your home. After all, it's yours to do what you wish. And, with any improvements you make, you have the ability to benefit from your investment. Try that with an apartment!

Mortgage Interest Rates as of Sept. 4, 2009

FHA around 5% 30 yr. fixed 4.75%

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Wednesday, September 2, 2009

It has been a good day, closed on a foreclosure today. My buyer got a great deal. More pleople need to buy right now. They can get great deals.