Owner Finance Atlanta

Meet "Wendy" - Our Gorgeous Alpharetta 4 Bed / 2.5 Bath Home

2012-02-23T09:30:00-05:00

To see "Wendy" call us at 770-434-4242 x112

Have a look at this beautiful 4 Bedroom, 2.5 Bath home in the Donamere Subdivision in Alpharetta. We've nicknamed her "Wendy."

This is a spacious 2-story traditional brick-front home. The home features a formal Living Room, a formal Dining Room, and a large Family Room with a fireplace. The home has an open, bright Kitchen with a breakfast bar and all appliances stay. The Master Suite features a garden tub, separate shower, dual vanity, and a walk-in closet. This gorgeous home is located in the Donamere Subdivision with amenities that include a tennis court and a swimming pool. This well-maintained subdivision is close to Verizon Amphitheatre and Big Creek Greenway. And, the home has the area's best schools and offers convenient and easy access to 141, 400 and I-285.

Loads of great features:

Huge 2-story traditional home with nearly 3,500 square feet
Family Room with a fireplace, Formal Dining Room, and a Formal Living Room
Large, flat backyard that is fully fenced-in on a cul-de-sac lot
Professional lawn care service is included at no additional cost!
Schools: State Bridge Crossing Elem / Taylor Road Middle / Chattahoochee High
Approx. Interior Sq Footage: 3498

Check Out the Nearby Schools!

Address (Get a map):

450 Waterstone Court
Alpharetta, GA 30022

Owner Financing Terms:

Payment: $1875/month
Down Payment: $10000 TOTAL
Flexible Down Payment: OK, so what if you don't quite have $10000, but you're close?
Well, we just may have a few creative ways for you to own this great home. Call us TODAY!
Prepayment Penalty: ZERO
Points Charges: ZERO
Private Mortgage Insurance (PMI) Charges: ZERO
Purchase Price: $299700

To see "Wendy" call us at 770-434-4242 x112

Meet "Sasha" - Our Attractive Dallas 3 Bed / 2.5 Bath Home

2012-02-23T09:00:00-05:00

To see "Sasha" call us at 770-434-4242 x111

Have a look at this beautiful 3 Bedroom, 2.5 Bath home in the Silver Ridge Subdivision in Dallas. We've nicknamed her "Sasha."

This beautiful home is in a well-maintained and established swim/tennis community. The home features low-maintenance vinyl siding and a 2-car garage. All appliances remain in the Kitchen which has a Breakfast area. The Kitchen offers a view to the Family Room with a gas-start fireplace. The Master Bath features a dual vanity and a walk-in closet. The Silver Ridge Subdivision is conveniently located near shopping, the Silver Comet Trail, Hwy 278, and Hwy 120.

Loads of great features:

Open Kitchen with oak cabinets and black appliances
Professional landscaping service for the front lawn included at no additional cost
Stylish 3rd bedroom is a loft
Great Swim/Tennis community that is walking distance to Silver Comet Trail
Schools: Dallas Elem / Herschel Jones Middle / Paulding High
Approx. Interior Sq Footage: 1412

Check Out the Nearby Schools!

Address (Get a map):

233 Silver Ridge Drive
Dallas, GA 30157

Owner Financing Terms:

Payment: $975/month
Down Payment: $2900 TOTAL
Flexible Down Payment: OK, so what if you don't quite have $2900, but you're close?
Well, we just may have a few creative ways for you to own this great home. Call us TODAY!
Prepayment Penalty: ZERO
Points Charges: ZERO
Private Mortgage Insurance (PMI) Charges: ZERO
Purchase Price: $79700

To see "Sasha" call us at 770-434-4242 x111

Meet "Laura" - Our Beautiful Powder Springs 3 Bed / 2.5 Bath Home

2012-02-10T12:00:00-05:00

To see "Laura" call us at 770-434-4242 x102

Have a look at this beautiful 3 Bedroom, 2.5 Bath home in the Legend Hollow Subdivision in Powder Springs. We've nicknamed her "Laura."

This two-story brick-front home has a master suite with walk-in closet, ceiling fan, and a huge garden tub with separate shower. The home features a formal living room as well as a formal dining room, along with a family room with gas-start fireplace. Legend Hollow is a friendly community conveniently located within minutes of I-75 and I-285.

PLEASE NOTE: This home is currently occupied. Please do not disturb the residents. Call us TODAY to schedule an appointment to view inside this great home!

Loads of great features:

Two-story brick-front traditional home
Eat-In Kitchen with Bay windows
Master Suite with walk-in closet, private bath with garden tub and separate shower
Formal Dining Room, Formal Living Room, and Family Room
Schools: Varner Elem / Tapp Middle / McEachern High
Approx. Interior Sq Footage: 1908

Check Out the Nearby Schools!

Address (Get a map):

4518 Legend Hollow Lane
Powder Springs, GA 30127

Owner Financing Terms:

Payment: $1145/month
Down Payment: $2900 TOTAL

Flexible Down Payment: OK, so what if you don't quite have $2900, but you're close?
Well, we just may have a few creative ways for you to own this great home. Call us TODAY!
Prepayment Penalty: ZERO
Points Charges: ZERO
Private Mortgage Insurance (PMI) Charges: ZERO
Purchase Price: $119900

To see "Laura" call us at 770-434-4242 x102

Meet "Carol" - Our Lovely Woodstock 4 Bed / 2 Bath Home

2012-02-10T11:45:00-05:00

To see "Carol" call us at 770-434-4242 x103

Have a look at this beautiful 4 Bedroom, 2 Bath home in the Colemans Bluff Subdivision in Woodstock. We've nicknamed her "Carol."

This is a spacious stepless ranch with hardwood floors throughout most of the home. The Kitchen has a Breakfast Area with a view to the Family Room with a fireplace. All Kitchen appliances will remain. The Master Suite features a walk-in closet, dual vanity, and a 2-person garden tub. Colemans Bluff is a family-friendly neighborhood conveniently located near Highway 92.

Loads of great features:

Spacious ranch
Intimate couples garden tub in master bathroom
Sunroom
Hardwood floors in nearly every room
Schools: Little River Elem / Woodstock Middle / River Ridge High
Approx. Interior Sq Footage: 1800

Check Out the Nearby Schools!

Address (Get a map):

196 Colemans Bluff Drive
Woodstock, GA 30188

Owner Financing Terms:

Payment: $1095/month
Down Payment: $2900 TOTAL

Flexible Down Payment: OK, so what if you don't quite have $2900, but you're close?
Well, we just may have a few creative ways for you to own this great home. Call us TODAY!
Prepayment Penalty: ZERO
Points Charges: ZERO
Private Mortgage Insurance (PMI) Charges: ZERO
Purchase Price: $119700

To see "Carol" call us at 770-434-4242 x103

Make Way for the NEW Housing Crisis!

2012-01-29T13:44:05-05:00

You remember the housing crisis, don't you? Plenty of ink has already been spilled covering the Great U.S. Real Estate Bubble and the subsequent housing meltdown that continues to this day. Home foreclosures have surged nationwide, and in many ways Metro Atlanta was ground zero for the whole disaster.

Well, that was the old housing crisis.

What we’re seeing now is something very different and very relevant for those considering buying or investing in residential real estate. We're referring specifically to the Atlanta market and more generally about the South, but we’re seeing this playing out across the U.S.

Believe it or not, Metro Atlanta is now facing a housing shortage.

A Housing Shortage? Seriously??

How is that possible? Aren't there millions of unsold homes just sitting around collecting dust? Absolutely: The inventory of residential single-family homes has hit 2.38 million nation-wide, with thousands of those unsold homes in Metro Atlanta alone.

But we're not talking about homes to purchase: We're talking about rentals. There is currently a shortage of rental homes, and it's about to get much worse.

It's Not Why You Think!

The reasons are simple: Huge rental demand and limited supply.

The increased demand is easy to understand. First, high foreclosures means more families are being forced to abandon their home and seek out a rental. Every new foreclosed home typically creates at least one new renter.

Second, Atlanta is still seeing a wave of new residents relocating from worse-off housing markets (such as Florida, Michigan, and California). Folks are being drawn to Metro Atlanta by the improving job market, low cost of living, and relatively low rents (compared to where they used to live.) When these families arrive in Atlanta, most will rent, either by choice or out of necessity.

So, Where Are All the Rentals?

But the real problem is supply. All during the housing boom of 2003 - 2006, developers built like crazy. But, what they built were mostly single-family homes, not rental units. The big money was in constructing homes, selling them fast, then repeating the cycle. As a result, very few new rental properties have been built in the last 10 years.

And what about all those foreclosed homes? So far, investors have nibbled around the edges of available inventory, but there has been no significant move to convert the bulk of these homes to rentals. However, there has been some recent progress on this front. In fact, this increased attention from private equity funds is even more evidence of the growing appeal of rental homes for investment.

OK, But So What?

So what does this all mean to you? Well, if you are currently looking for a rental home, you can expect to see lots more competition for the nicest ones. You should also expect rents to start climbing as other renters "bid-up" to get the home they want.

And, if you ultimately plan to purchase a home, look for programs that help you own while you rent, like our Lease-Purchase program. No matter how credit-challenged you may be today, the time to start on the road to recovery is right now!

Just remember: You heard it here first!

Why Waiting Won't Work

2011-08-25T12:18:37-04:00

"I was thinking of buying a house in July but have now begged off because housing prices keep falling. Why pay $120,000 when I can pay $110,000 in a few months, or $100,000 next year?"

It's true: Home prices can (and probably will) drop a bit more over the next few months. Waiting for the bottom seems like the smart thing to do...

...except when it isn't.

Before you decide to wait, be sure you're looking at the whole economic picture. Make your decision with full knowledge of the financial winds that are blowing today!

There are three factors you should consider when making the decision to buy now (or pay later!): Interest rates, rents, and inflation.

Stupid-Low Interest Rates Can't Last Forever!

A client of ours just closed on a beautiful home with a 30-year fixed loan at 4.5%! No, that's not a typo: 4.5% fixed-rate financing for the next 30 years. If you are 50 or younger, you've never seen mortgage rates this low your entire lifetime.

But guess what? It's not going to last forever. And once rates start rising, it will become harder and harder for more folks to qualify. In a year from now, you may not even be able to get a mortgage.

You've Gotta Live Somewhere (and Rents are Going Up!)

If you are thinking about becoming a first-time home buyer, you're probably paying rent right now. Need we remind you that every month you're tossing good money right into a hole in the ground? Average rent in Atlanta is now about $850. So if you wait a year, you'll have blown through TEN GRAND with nothing to show for it (except a dozen check stubs).

Meanwhile, who says your landlord won't raise your rent next year? Or next month? Go talk to people who are out looking for rental homes these days: Monthly payments are creeping up. Now that so many people have decided (or been forced) to rent, there's lots more competition for the best homes. More competition means higher rents. It's simple supply and demand.

(I'll bet a 30-year fixed loan is starting to sound a little better, now, isn't it...)

It's Back to the Future with INFLATION!

Here's how we think about inflation: Over time, prices tend to increase. How much they increase depends on how much fiddling the government does with interest rates and U.S. Treasury bonds and such. And, for the last 3 - 4 years, our government has done a whole bunch of fiddling. The net effect is that the rate of inflation (currently at 3.6%) is poised to go up, possibly even back to the double digits like we saw in the 70's and early 80's.

Why should you care? Because you're trying to save up for a down payment, right? Unfortunately, inflation steals purchasing power away from your money, even if you just stick it under a mattress for the next 12 months. In fact, unless you are able to invest your down payment money and earn a rate of return at least equal to the inflation rate, you are actually losing money.

And that's exactly why higher inflation is making a comeback: It forces both businesses and individuals to invest capital, thereby jump-starting the economy. How high it will be allowed to get is anyone's guess, but you'd better believe it: Inflation is on the way!

For the average consumer, the best defense against inflation is investment. And for most consumers, their biggest and best investment will be their own home.

Do you see things differently? Leave us a comment and tell us what you think!

The 3 Top POWER Moves for Serious Home Hunters

2011-03-10T12:59:49-05:00

It's never been easy to purchase a home, but home shoppers today need an extra helping of guts and determination to survive in this scary, post-Crash environment.

If you've started looking around at houses to buy, you probably already realize that interest rates will soon be heading up, making now the perfect time to take advantage of the low prices and huge over-supply of single-family homes.

Even so, there are still plenty of pitfalls and hazards that can sideline your home search. Read on to learn the 3 best moves to make once you've decided to purchase a home. We call these Power Moves because they give you extra leverage and really set you apart from your competition for the best deals.

POWER Move #1: Give Notice to Your Current Landlord NOW!

Here's the nightmare scenario: You find a sweet deal on a gorgeous home. The seller is eager to accept your low-ball offer and the house is in perfect condition. Then you talk to your landlord and discover that your lease requires 60-day notice before termination, otherwise you'll forfeit your deposit and must pay other penalties. Meanwhile, your seller, who can't wait two months for you to close, finds another buyer for your dream home. Too bad!

What's worse is that this was entirely avoidable!

Start by talking to your landlord. Explain that you are trying to buy a house and want to be upfront with them. Then, find out exactly what your lease has to say about termination. There is probably a clause that requires 30- or 60-days notice.

Next, go ahead and give notice now. Right now. We recommend you send the landlord a one-page letter that explains your intention to purchase a home and gives formal notice. Then, begin your home search. Keep your landlord in the loop regarding your progress. Just before the end of the notice period, if you haven't found anything, send your landlord another letter that cancels your notice. Then, send another notice letter. Repeat this process until you found a home that you want.

We can hear the whining already: "But, what if my landlord fills my apartment and makes me leave?" That's why you must keep them in the loop. Let them know if you have a serious lead or not. Don't surprise them and they won't surprise you. Trust us: In this market no sane landlord is going to dump a good, paying tenant just because they gave notice.

POWER Move #2: Pull Your Own Credit Reports NOW!

You're going to have to qualify for a mortgage. Which means your going to have to talk to a loan officer. Which means they'll need to see your credit reports. Now, we believe in shopping around for the best loan deals, but it's crazy to have your credit pulled every time you talk to a new mortgage company.

Save yourself some time (and a few points off your credit scores) by pulling your own credit reports for free and saving them for easy reuse. To access your free reports, visit AnnualCreditReport.com. Be sure to save the reports to a PDF file format so that you can email them easily.

POWER Move #3: Start Looking at (Lots of) Homes NOW!

The only way to really understand what the home market has to offer is to look at homes. Lots of them.

Don't make the rookie mistake of falling in love with the first nice home you see. There are hundreds of houses out there. The more you see, the better equipped you'll be to decide what features you really need and want in a home. Seeing lots of homes will also help you recognize when you've come across a true gem, so you won't dilly-dally and lose out to a faster competitor.

Understanding these three truths should help make your home search more fruitful and less stressful for all parties involved. Happy hunting!

Our Instant Anti-Recession Plan: No More Application Fees!

2010-07-26T10:05:54-04:00

"No Jobs Means No Recovery"

"Quarterly economic forecast takes a turn for the worse"
‎
"Double-dip recession biggest concern for executives"

We've all had enough of the doom and gloom. Perhaps it's time to try something new. A little humor, maybe?

Q: What’s the difference between an investment banker and a pigeon?
A: A pigeon can still make a deposit on a shiny new BMW.

OK, maybe not. But we can still do our part to help out and lighten the load.

So, in response to a very shaky economy, Owner Finance Atlanta is pleased to announce our Instant Anti-Recession Plan:

Starting July 26, 2010, all application processing fees are hereby waived! That's $45 per person ($80 per couple) that you can keep right in your pocket!

It's not a fortune, but every little bit helps, right? And we'll keep our Instant Anti-Recession Plan in place until the economy is back on it feet!

So why should you consider Owner Financing a home now?

Because now is the perfect time to:

Find a great home, and,
Spend the next year or two quietly repairing your credit and building up your down payment.

That way, when the economy improves (and it most certainly will), you'll be in the ideal position to own your home.

So, take a look at the homes available here at Owner Finance Atlanta. Schedule a Private Viewing to come see any of our great homes. Then, when you are ready, complete our easy Owner Financing Approval Form and pay absolutely nothing to find out how we can help you own the home of your dreams!

3 BASIC Facts Your Real Estate Agent Wishes You Knew

2010-04-07T16:00:00-04:00

As the housing crisis wears on, one group that has really taken it on the chin is real estate agents.

When homes aren't selling, agents can't earn a commission. Even worse, behind every failed attempt to purchase a home, there is likely an agent who has put in serious time, effort, and money only to walk away empty-handed.

It's no wonder real estate agents have been abandoning the house business in droves. The National Association of Realtors has seen membership plummet a whopping 21% since 2006! And, since the Web and social media throw another monkey wrench into the mix, it's fair to say that there's never been a more frustrating time to be a real estate agent.

Even so, for most serious home buyers, their very first step should be to find themselves a knowledgeable and experienced real estate professional.

Consider your agent the quarterback of your little home buying team. You've got a loan officer, a home inspector, an appraiser, maybe some contractors, and you. It's the agent's job to get the best performance from each team member and drive the entire motley bunch toward the goal line.

For these other team players, time is money — so you'd better come ready to perform. As the buyer, you have specific responsibilities and you need to understand them all completely. Here are three basic facts you need to know to hold up your end and keep yourself from getting cut from the team:

"It's up to you to know what you want in a home."

Real estate agents are human search engines: think Google for houses. But, as with any search engine, they are only as good as the terms you use to describe what you want. But, "garbage in - garbage out" still holds true. If your house needs are vague and uncertain, a list of unsuitable houses is often the result. And everyone's time gets wasted.

So, as the home buyer your first order of business is to sit down and sort out your needs and wants. Be as precise as you can in describing what features, floor plans, and amenities you require. Also be very clear on what you don't want in a home. Then communicate all of this clearly to your agent right from the start.

Just be sure to leave room to be surprised by the unexpected: We've heard plenty of stories of buyers who ended up loving a home that was nothing at all like what they originally asked for.

"Yes, it's a Buyers Market... but only if you can qualify RIGHT NOW."

With home prices at historic lows, now is arguably the best time to purchase a home that any of us will ever see in our lifetime. However, in order to take full advantage of this veritable buffet of tasty deals, you've must be able to qualify for a mortgage now (or have a mound of cash available).

It's no wonder, then, that the very first act of your real estate agent will be to determine whether you are mortgageable (and if so, for how much). If you can't get a loan today and you don't have a ton of cash, there is not much an agent can do to help you buy a home. (Home Pride can, but that's a topic for another day ...)

Every great real estate agent has a "go-to" loan officer that can review your credit and see what loans you qualify for. Your job is to submit a loan application (the dreaded Form 1003) in a timely manner. This pre-approval process shouldn't take more than a week, but don't expect much attention from the agent until you've received a thumbs-up from their loan officer.

"You hired me for my expertise: Now let me do my job."

This very month, some would-be homeowner will watch a late-night infomercial on the magic of foreclosure investing. With one swipe of a credit card, they'll become an overnight expert on the purchase and sale of residential real estate. All will go smoothly for these "Trumps-in-training" until they have that first fateful conversation with an experienced real estate agent. Then they'll learn about the dozens of real-world obstacles and hidden gotchas never mentioned by the slick-talking dude on the tube.

If you choose to engage a real estate agent to help you purchase a home, find the most talented professional you can and then let them do their job. No one minds the occasional question, but nothing slows down a deal more than having to explain every last detail to the newbie. Yes, it's your money and your house. But it's their livelihood. If you've selected the best, then you owe it to them and yourself to listen to their advice and heed their counsel.

Understanding these three truths should help make your home search more fruitful and less stressful for all parties involved. Happy hunting!

3 MAJOR Truths Your Loan Officer Wishes You Knew

2010-03-07T21:49:31-05:00

If you want to buy a home, you'll need to get a loan. That means working with a home loan consultant to get qualified.

Like everyone else, you'll complete a loan application and then wait (anxiously) to hear back.

If your credit score has taken a serious beating lately (and these days, whose hasn't?), your loan consultant might report back that you need to do a little fix-up work before you can qualify for a loan. No big deal: Happens all the time.

Having an experienced and motivated loan officer on your side can mean the difference between getting the loan and just giving up in utter frustration. Loan consultants are the unsung heroes of the home buying process. We've seen some get very creative and work credit miracles to get deals closed.

But we've also seen purchases go down in flames because the home buyer didn't understand the role of the loan officer within the home mortgage process.

Loan officers are closely-regulated by each state. There are tons of rules and regulations that govern what they can and cannot say to a client. However, when deals go south and loans don't close, we're often the ones they commiserate with over a beer (or three).

And fortunately, we're not loan officers, so we can share their concerns without mentioning names or getting anyone in trouble. So, in the interest of helping you close your loan on any home you might purchase, here are three things your loan officer would tell you if they could:

"I don't get paid until you close on a home with me."

Loan officers get paid as part of the closing of the home purchase. If you can't qualify for a loan today, most loan officers can and will work with you to help you get qualified. But, you should know that they are under no obligation to do so. If they choose to help, they do so in the hope that they can eventually get you qualified and also get compensated for their time and effort. But, loan officers don't get paid a penny more for closing difficult loans. And they frequently get burned by unappreciative or insincere buyers.

Unlike with a Realtor, you don't sign an upfront contract that requires you to use a particular loan officer. So it's entirely possible for a loan officer to spend several months (or years) getting a buyer ready to qualify for a loan, only to have them close a deal using someone else. Talk about betrayal!

Even worse are buyers who claim to want the help offered by a loan officer, but then do none of the recommended work to repair their credit. If you are not truly committed to doing everything you can to qualify now, then why not just agree to move on and try again later. For everyone's sake, don't drag your poor loan officer down a long tortured path to nowhere (and no closing).

"If you don't tell me the whole ugly truth, I can't help you."

These last few years have been tough on all of us. Jobs have been lost, and found, and then lost again. Work hours have been cut, sometimes drastically. And sometimes you had no choice but to let a bill slide here and there. Guess what: You're not the only one.

Your loan officer has seen worse credit than yours, guaranteed. What matters now is what happens from here on out. If they know the whole story, they can plan for it, re-package it, and make the best of it. The absolute worst thing you can do is downplay or hide financial details. For one thing, the truth will eventually come out, and always at the worst possible time for you.

Every possible credit disaster can be fixed, given enough time. Upfront full disclosure gives your loan officer an understanding of how much work will be involved, as well as how long they can expect to wait before receiving any compensation for their efforts.

"Sure, you can repair your own credit, but you'd better talk to me first."

Some loan officers do offer credit repair consulting for a fee. For many home buyers, this is a smart way to get the assistance they need. Also, putting a price tag on the repair takes away some of a loan officer's concerns about your commitment to improving your credit. If your loan officer offers such a program, you'd be wise to consider it.

Still, some home buyers will want to save a little money and repair their own credit. Not necessarily a bad idea, provided you do it the right way.

The wrong way is to just dive in and start doing things (paying off old accounts, contacting creditors, etc.) without a game plan. Credit rules change almost daily and are not subject to the normal rules of logic. Sometimes, what seems like an "obvious and sensible" thing to do could actually lower your credit score.

Instead, sit down with your loan officer (even if it costs you) for a strategy session. Get them to make three or four specific suggestions that you can take action on over the next 6 months. Then, go and do these things yourself. Come back in six months for another session to check your status and get marching orders for the next six months. Step by step, you'll eventually reach your credit goal.

The ONE Thing You Can Do Today to Improve Your Credit Score

2010-02-08T08:31:00-05:00

Three words: secured credit card. Unlike their unsecured cousins, secured cards require that you put up a cash security deposit first. Then, you can use the card to make credit purchases up to the amount of your deposit.

Yes, it's credit on training wheels, but wait for the kicker: When our clients do this one simple thing, their credit score goes up 20 - 40 points!

So, get a good secured credit card and use it wisely. Here's why you need to do it now:

Credit is going to be more important than ever before - Banks are steadily increasing the credit score needed to qualify for a mortgage. These days it's around 640, which is about 20 points higher than it was a year ago. If you are only a few points away, a secured card could make all the difference you need.
Everyone is feeling the crunch - We've talked to hundreds of prospective home buyers over the past months, and we can report that every one of them has seen their credit situation worsen.
Now is the time to begin rebuilding your credit - Credit improvement takes time. If you start now, you'll have a huge advantage over your fellow home buyers once everyone agrees that things are getting better. To borrow a quote, "In the land of 500 credit scores, the 600 score is king!"

So, get yourself a secured credit card, but make sure you do it right. Here's how:

Make sure the credit card company reports to all three credit bureaus (Equifax, Experian, TransUnion): This is too important to make assumptions, so be sure to ask the question and get a definitive answer. Remember: If they don't report, then getting the card will not help your credit one bit.
Avoid nuisance fees: Look for a card with minimal or no application fees, processing fees, or annual fees. They do exist, but you've got to search for them.
Start off small: We have seen clients improve their credit score within 30 days just by having a $200 secured card. Don't get tricked into "supersizing" your card with features that you don't need: Stick with the bare bones for now.
Do not keep a monthly balance: In fact, just stick the card in a drawer once you get it. You don't have to use the card to see the credit improvement.

Our recommendation: Right now, we really like the Orchard Bank Secured MasterCard offered by HSBC. You can apply online. Orchard reports to all 3 bureaus as a regular credit card. There is no application or processing fee. The annual fee is only $35, and is waived for the first year. Best of all, the minimum security deposit is only $200!

Give this a try and then come back and let us know how it worked out for you. Or, if you already have a secured credit card, how has it helped your credit score?

Fear is Not an Option: Two Utterly Bogus Reasons NOT to Buy a Home Now

2009-12-07T08:32:00-05:00

So, are we all terrified of buying a home yet?

The headlines are positively hair-raising! "Don't Buy a House – Yet," warns one. "If You Think Home Prices Are Rising, Think Again," advises another.

If you are sitting on the sidelines, you've probably convinced yourself it's for a good reason. And maybe you're right.

Or, maybe you're just scared.

Let's be blunt: Some folks shouldn't even try to own a home. If you're not ready for the responsibility, you really are better off renting. Or, maybe you are constantly on the move from city to city. Maybe your finances are shaky, or your job situation is uncertain. Whatever the reason, only you know for certain if owning a home is a serious goal or just a passing fancy.

But for many would-be buyers, the REAL reason they haven't acted yet is FEAR. Fear and too much statistical data. The pundits and experts go on and on about whether or not now is the perfect time to buy. That's like asking when is the perfect time to have children: If you only go by the numbers, the timing will never be perfect.

Markets and economies boom and then bust. It's a cycle and it's always been this way. But here's what many of the experts are missing:

So what if home prices drop? - OK, this sounds scary, but let's use some real numbers. Say you buy a home today for $122,900 (the median for Atlanta in October '09) with a fixed-rate mortgage by putting 3.5% down. Now let's say home prices drop a full 20% the day after you close! Oh, the horror! Now your home is only worth $98,320. Congratulations: You're officially under water.

But, what does that really mean for you? Your mortgage stays exactly the same. You'll receive the exact same deduction of interest on your income taxes. As long as you can still make the monthly payments, and don't need to sell before the market recovers, you should be fine. The lesson: Don't obsess over home price trends if you're buying for the long term.

So what if the economy stays in the tank? - Even the most extreme pessimists are not arguing that the US economy will never recover. The debate now is focused on how long it will take. And, since companies won't begin hiring (or stop firing) until the economy improves, a long slow recovery could definitely threaten your job stability.

But guess what? That would be true whether you are renting or buying. But here's the kicker: At least with a fixed-rate mortgage, you can somewhat ensure your monthly payment stays the same. Not so with rent. As soon as the economy shows even the slightest glimmer of stability, you can bet that landlords are going to be raising rents as high as the market will bear.

The point is that it's all personal and local. There is no "average" housing market. You've got to make a decision that works best for you, given the best available information. Just remember: Freezing your left hand and burning your right does not make you comfortable "on average."

If you can purchase now, in a manner that makes sense for your personal situation, then don't let FEAR (and the media) be the reason not to.