As you consider buying your first home, you’ll get lots of advice, but you shouldn’t do anything without a complete understanding of your financial situation and how much home you can afford.  So, where do you begin?

There are two parts to financing - the downpayment (generally 20% of the purchase price) and the balance (the remaining 80%).  Secure the best interest rate by reviewing your credit reports and correcting errors, which are surprisingly common.  Do this at least two months in advance of your home search, as that’s how long it can take to clean up your reports.

You’ll know exactly what you can afford by securing pre-approval from a lender, who will review your income, debt and credit, and suggest the loan best suited to your qualifications and needs.  If you can put down more than the usual 20%, you may qualify for a higher loan amount.

With less than 20% down, you might pay a higher interest rate or PMI (Private Mortgage Insurance), because the lender assumes a greater risk.  Consult a financial adviser about ways to raise the cash, like withdrawals from an IRA or gifts from your parents.  Each has tax implications, so proceed with caution.

With your financial house in order, you’re ready to discuss your desires with a Realtor® from Don Kingsley Real Estate and begin your home search in earnest.  Congratulations!

It’s probably no surprise that homeowners who have faced the ordeal of foreclosure feel a certain measure of shame or guilt about their experience.  Whether or not those feelings are warranted, it’s hard to survive the process completely unscathed.

What is surprising is the recent development of “buyer’s guilt.”  Some who are fortunate enough to afford to take advantage of a low-priced foreclosure offering are suffering some degree of remorse about the transaction.

Whether it’s because they got a deal that none of their friends or family did, or whether they just feel badly about someone else’s unhappy situation, the emotions are real, but should be approached in a different way.

These buyers are not necessarily capitalizing off someone else’s misfortune, but actually helping by removing a distressed property from the market and maintaining property values.  It’s actually good for the market and the local economy for buyers to take advantage of these bargains.

If you have some doubt about buying a foreclosure, you can ease your concerns and do some good for others. When you make your move, why not make a donation of household goods instead of packing them in boxes?  Certainly a local shelter or charitable organization like the Salvation Army can improve the lives of others with your kindness, and put you in a great frame of mind about your move!

If you are in need of real estate guidance and would like information on buying a foreclosure or any other home, please call or stop by our office and a Kingsley Real Estate Associate Broker will be happy to help you.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com and I’ll be happy to share my knowledge with you at no cost or obligation.

Phew!  After four years of declining home sales, the numbers appear to be finally turning back upward, with closed sales and pending contracts at above-normal increases.  In particular, first-time buyers helped buoy the market by taking advantage of low prices and interest rates, as well as the $8,000 tax credit offered by the federal government.

At least for now, home prices remain attractively low, and mortgage payments as they relate to income are very comfortable.  All the information seems to point to the fact that home prices have actually overcorrected downward.  What does that mean?  It indicates that many markets may experience a price “snap back,” with values increasing a lot more than the historical average of 4% appreciation per year.

Some factors may continue to make buyers cautious, mostly declines in retirement savings and a lukewarm economic recovery with unemployment hovering around 10% nationally.  Now is not the time to hesitate, however, as mortgage interest rates are expected to rise in 2010.

We can expect the momentum of home sales to continue, especially with the extension of the tax credit through April and the fact that qualification is no longer limited to just first-time buyers.  Prices and interest rates will rise this year, so buyer confidence should be at an all-time high.  The pressure cooker of pent-up demand is about to blow its top!

If you are looking to get in on the action and buy a house reaping the tax credit benefits or need to sell your home, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.