Daylight Savings Time

Don't forget 2 set your clocks AHEAD an hour this weekend!!! That's right Spring is coming early this year! That means we have another hour of sunlight. Let's use this extra sunlight hour to tour some OPEN HOUSES so you use that tax return the SMART way!!!

rent or BUY???

Although HOME OWNERSHIP is the first step into achieving the American dream and the best way to use "smart money", sometimes it's not always the right step depending on your circumstances. So how do you make this important decision? Here's 4 tips to consider when debating on whether to rent or buy home...

1- Your Stage of Life You're usally better off renting in the early stages of your career that may take you to another city in a year or two. If you move frequently, giving notice to a landlord is much easier than finding a buyer for your home especially if the market is soft. Typically, you should plan to stay in your home at least two years or more to recoup closing costs.

2- Your Lifestyle Buying a place to call your OWN lets you decorate and paint your home any way you want! However, it does entails regular maintenace, like cleaning the gutters, and can result in additional expenses that should be factored in your annual budget. Renting requires less responsibility and offers nearly maintenance- free living yet limits you to the way you can personalize your home. So, if you are in the habit of spending your extra $$$ at Nordstrom versus saving, then HOME OWNERSHIP is not for you at this point. You have to learn how to condition yourself to start using "smart money". Also, keep in mind that when you rent you spend thousand of dollars a year paying on a home that is NOT yours and you are increasing someone else's wealth rather than your own!

3- Your Timing If you are financially and personally ready to buy a home, there are factors within the economy to consider. The real estate market is in constant change as well as mortgage rates. But if rates are low and housing prices are on the decline, it may be a good time to buy.

4- Your Finances Depending on where you live and your needs, renting allows you to manage your monthly budget and savings rather than a home where you may have unexpected maintenance costs. Although your rent can increase every year, it will provide with the ability to save if your bigger dream is to have a nice nest egg.

Even when owning a home, savings should not be neglected. Another added benefit to HOME OWNERSHIP is the ability to deduct your propety taxes and mortgage payments on your income taxes. With these factors, paying a mortgage may come out to be just the same or cheaper than renting!!! Do the math. If you can cover the cost of a mortgage and continue to save than its time for you to email me at dianatherealtor@gmail.com so we can start visiting some Open Houses and start using "smart money"!!!

7 tips for first time home buyers

So, I know I've been on this "smart money" tip when it comes to homeownership. But there are certain things you should do before taking that wonderful step into "smart money!" Follow these 7 steps to make sure you are READY for that DREAM HOUSE...

1-Check the selling prices of comparable homes in your area. There are certain websites that you can check these including the National Association of Realtors website.

2- See what YOU can AFFORD. I have a network of experienced loan officers that you see what's your buying power. Also, keep in mind that just because you sit down with a loan officer and you find out what you can afford by NO MEANS does it bound you to a loan. This is merely done to focus your search when looking for your home. I mean really if you can only afford a $200,000 home there's no reason you should be looking at $300,000 homes! Unless you have an $100 G's just lying around that is!!!

3-Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use MSN Real Estate's home affordability calculator. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment. To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy.

4-Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees.

5-Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor. And this often causes you to be "upside down" on your loan...(remeber the short sale lesson earier in the week)

6-Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon? Trust in your agent, we are here to RELIEVE the stress for you. You DO NOT have to go through the BIGGEST& MOST IMPORTANT purchase of you life alone!

7-Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account.

Neverland Ranch may b FORECLOSED...

It looks like another celeb couldn't escape foreclosure...Sources are saying that if the King of Pop has until March 19th to come up with $24,525,906.61 his infamous Neverland Ranch will be up for public auction in Santa Barbara, Cali., in front of the county courthouse. So... if you have several millions laying around this dream home could be yours! Oh and I didn't mention that you will also get "all elevators, all railroad tracks, railroad equipment, trains, locomotives, rail cars, all ferris wheels, carousels, and the merry-go-round!!! Lets hope Mike can come up with the money...we surely don't want him to loose his "dream home."

sources: bossip.com

short Sale

There's been alot of talk in the media about "short sales". What is it exactly? Is it the same as a foreclosure? Does it negatively affect your credit? No worries Diana The Realtor is here to clear all of your questions for you! A short sale is basically selling your home for the value of it versus how much you may owe on a home. Its essentially when a person owes more money on a home than how much the home is actually worth. Ultimately this means that you are "upside down on your home." You find this VERY common when owning a car. To prevent foreclosure you may sale your home for the market value rather than selling it for a profit. When you consider this, keep in mind that you must get permission from your mortgage bank and you MUST claim the difference of what you owe and the actual sale of the home as income on your income taxes. For example: your home is worth $225,000 but you owe $300,000 on your home...you must claim the difference of $75,000 as income on your taxes. Doing a short sale will not negatively impact your credit rating! It is here to help you BEFORE foreclosre!!!