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!!!

Celebrities are NOT exempt!!!

Even celebs can't escape foreclosure...it can happen to ANY of us. Now if millionaires like Marion Jones, Latrell Sprewell, and Teddy Riley cant keep their "dream homes" what do you think will happen to you if you are trying to "keep up with the Jones'?"

sources: bossip, LA Times

The Skinny on Foreclosure...

You hear everyday how the foreclosure rate is at a high point. And yes this is true...there's no denying it. What does foreclosure actually mean??? Foreclosure simply means that the bank takes your home because you can not pay your mortgage. But the bigger issue is HOW 2 AVOID it. The 1st step is to find a great loan officer that has integrity and loyalty! The reason integrity and loyalty are vital is because if your loan officer do not have these qualities they DO NOT have good intentions. There are some loan officers out there that will push a loan on you that you may qualify for on paper but not necessarily in reality. What do I mean by this...simple don't get into nothing you cannot REALLY handle!!! You may be approved for a $500,000 loan but if you're not ready to pay that $3500 monthly mortgage...DON"T DO IT!!! As my grandma use to say: "Keepin' up with the Jones' will get you in a world of trouble!!!" I definitely understand that EVERYONE wants their dream home but please don't get in over your head! You will end up in more debt than ever! At Long $ Foster, we work with the Prosperity Mortgage...contact me so we can sit down today with a honest loan officer with integrity to get you the best loan for your money!

Long Live the KING...

Happy Birthday!!!! You are MISSED BUT NEVER 4GOTTEN...I know you're enjoying your day with a smile as usual. We all Love & Miss You!