#1 Stay within budget. Before buying a home, it is important to set a budget. That budget will state the highest possible payment you can afford in addition to home bills and upkeep cost. Once that budget is set, there is nothing that should push the limit of that monthly payment. If no lender can help you into a loan for a home you love under that budget, find a new home or a new lender.

#2 Use the Internet. Shopping around for the best mortgage interest rate and deal does not mean you have to stick with a lender that is in your current area. The Internet opens the doors to every mortgage agency or lender listed on the Internet. This means more competition for your mortgage and lower interest rates. Bankrate.com is one of the best places to find the lowest interest rates for the day and the best lender will offer that rate (pending credit rating).

#3 Educate yourself on mortgage terms. Mortgage terms like adjustable rate mortgage, balloon payment, interest-only payments and fixed interest rates can be very confusing. The Internet is the best source of information and definition of these terms, but more than that, the potential buyer needs to walk into a real estate agency or lender’s office and ask for literature explaining real estate terms. The more education you acquire before actually applying for the mortgage, the better you will understand what is happening during the lending process.

Shopping around for the best mortgage has little to do with JUST finding the best rate. While this can be very important, learning about the mortgage lending process and keeping within a great budget will get you into the home of your dreams with a smile on your face that stays for the entire duration of the mortgage.

Bottled water is a unique product in that there are no real rules regarding where the water originates. That means any bottled water manufacturer can fill their polyethylene terephthalate bottles with pure, unchanged, tap water. That is right, tap water is the most common water used by bottled water companies. These companies add minerals to the water to improve the overall taste and then slap a price tag on the bottle that is equivalent to 500 times the cost of the same water you can run from your tap.

Tap water offers its own advantages over bottled water. Tap water provides tooth protecting fluoride in many cities and is tested on a daily basis versus bottled water which is only tested weekly. Tap water costs the consumer a mere 3 cents per bottle and saves the environment by reducing crude oil consumption by more than 1.5 million gallons.

The most common complaint about tap water is the taste. Bottled water contains minerals that improve the taste of the water. If taste is the problem, add one of the many flavored packets to your water before drinking. While these flavor options increase the overall cost of the water, flavored tap water remains less expensive than bottled water.

Choosing tap water over bottled water is simply the best choice for your body and your environment. Keep plastic out of the land fills, keep environmentally damaging gases out of the air and keep clean, healthy water in your home. Tap water is safer, healthier and more cost effective for every home.

A focus group is a group of people who take a survey or try a product out for free in order to give feedback to the creator or manufacturer of the product. While big business is usually who takes advantage of the focus group, a homeowner can tap into the group in order to get an honest feel of how the home will show on the market.

The focus group can be gathered from friends, family members, acquaintences and local real estate agents. If you do not want to pay the agents to walk through your home, simply as them to walk the home as a favor before you list the property for sale.

Before the focus group walks through the home, it is important to hand out a list of instructions regarding the information they pass on about the home. These instructions should tell the group to HONESTLY rate the home on the various topics listed on your questionnaire. These topics can include cleanliness, size, number of bedrooms, paint colors and room flow, among others. There should also be a section where the focus group can write comments about the property.

Once the group has completed their tour, the homeowner will need to read over the comments with an open mind. These people represent the same people who will be walking the home during the open house. They will feel the same way as the focus group and thus the changes noted are important to the quick sale of the home.

The easiest changes to make are to room color and clutter. Nearly all furniture should be removed from the home before the open house is set. This will give the potential buyer the ability to visualize their furniture in the home as opposed to feeling shut in by your furniture.

Another huge plus is to place the furniture on casters throughout the home. These castors will allow the potential buyers to move around the furniture to “see” the room from different angles. On each piece of furniture, leave a note that states, “Move me into YOUR perfect spot!”

A fixed rate loan will cost the new homeowner more money, hands down. But, this higher loan payment comes with the benefit of never raising during the loan maturation. The same mortgage payment the homeowner makes on the first month of the loan is the payment they will make throughout the loan. The ARM, on the other hand, cannot say the same.

The ARM, or adjustable rate mortgage, is available for new home loans and refinance loans. The ARM is often blamed for the rise in foreclosures in many cities. The ARM payment often starts out lower and then rises over time. The homeowner could begin repaying the loan with an interest only option and a very low payment. When the loan adjusts, that payment could double or even triple depending on the current interest rates.

If the fixed rate or ARM loans both offer good benefits, the home buyer could be looking for a hybrid loan. A hybrid loan offers both ARM and fixed rate characteristics. There are many different types of hybrid home loans, so the homeowner looking to refinance or the potential home buyer shopping for the right loan will need to speak with their lender about the hybrid loan options.

Now on to the choice…

The trouble with many novice home buyers the lure of the ARM loan. The ARM may be pushed by the lender due to the lower upfront payment. If, during the adjustment of the loan, the homeowner will not be able to keep up with the payments (even hypothetically) they should not enter into an ARM. These loans are great for people who buy a home for a great deal and believe the value of the home will rise before the loan adjusts. This is the art of investing and not traditional home buying.

Homeowners can often afford the fixed rate loan by choosing a smaller home or a home with fewer features. If the home price is lower and thus the mortgage lower, the payment will be lower. It is better to afford the home you live in then lose the home you love.

September sales were up 2 percent over August’s tally of 1,672.

As always, here’s the chart: Download Gtar909

Let’s see, for example, how population affects the housing situation. In America, alone among today’s wealthy nations, is on a path of solid population growth. This is good, notwithstanding the harum-scarum alarms by those who see disaster impending from a “population explosion.”

The U.S. population was approaching 300 million in 2000. Quite solid projections by the Census Bureau see the number at about 400 million people in 2100.

Why is the U.S. growing, while other modern nations shrivel up? First, our total fertility rate is about 2.1 children per woman - a magic number in the demographer’s kit, because that’s what it takes to “replace” a society. Sooner or later, Mom and Dad pass on (sorry to break the news), and they must be “replaced” by two children. The extra 0.1 accounts for children who do not live to reproductive age.

A strong relationship exists between America’s “replacement fertility” families and what/where they call home. Much more than their counterparts in Europe and Japan, Americans inhabit single-family detached houses. There is room for two, three - or more - children to play in the backyard, and the nice sense of privacy those children have because they live in their own rooms. Residents of other large, modern and wealthy nations tend to live in apartment nations, where space limitations put a damper on the idea of having a big family.

The coming housing boom will not only employ carpenters, electricians and roofers, but real estate lawyers, policemen and firemen, teachers and athletic coaches to begin a very long list. It was once said that the automobile industry was the great American job producer. No more. That honor surely goes to housing.

America’s history of successfully absorbing large waves of immigrants is a lightning rod for controversy, but the historical record is clear. New immigrant groups - be they German, Irish, Chinese, Italian, Jewish, Polish or Greek - are at first greeted with suspicion. Then they work hard, make lasting contributions and end up being central to America’s cultural fabric.

Mexican immigrants are the hated group du jour but move into the mainstream rapidly. Today’s landscapers and housekeepers are raising tomorrow’s engineers, judges and entrepreneurs. Today’s immigrants, like others before them, will leave the slums and barrios to chase the American dream in a leafy suburb.

At present, about 1 million “net immigrants” (i.e., immigrants minus emigrants) arrive in America each year, so 20 years down the road there will be about 20 million additional Americans (plus their natural growth once here). They will either live in the streets, or the housing market will bloom. This is hardly the stuff of a housing crash. American cities may have problems, but they do not approach Calcutta and its twin Howrah, where sleeping on the street is common, notwithstanding India’s remarkable economic boom.

The bright future we envision for housing in America also tells us a lot about the infamous bubble in that sector and the bright side of all economic bubbles.

Remember the dot-com bubble of the 1990s? Despite suffering a truly spectacular burst, it laid the groundwork to go from dial-up Internet to wireless, and now computing in the cloud. It made e-mail and e-commerce part of our daily lives and gave us near-instant access to all manner of human knowledge. Many of the entrepreneurs who made it happen were immigrants. If that’s an impressive upside, imagine how we’ll benefit from a rebound in housing, something even more essential to us than our Facebook pages.

Housing will come back stronger than before because America possesses the essential ingredients - a growing, dynamic population and a resourceful spirit to overcome burst bubbles - that make us citizens of the First Universal Nation. We should revel in that. Far from a housing-led era of gloom, it guarantees that this will be the second American century.

The statistics come from the Pinellas Realtor Organization. There’s a brief analysis from James Thorner after the jump:

(more…)

The interesting thing about luxury real estate is the price point and the variable separation between the luxury real estate market and the traditional real estate market. Home buyers will money to spend do not want to know the true cost of ownership or the fact that the local water bill is slightly higher than the surrounding area. They want to supply their real estate agent with a list of needs and have a home available when they are ready to buy.

On the flip side is the seller that is trying to sell off a million dollar home. Luxury real estate is all about patience even when the seller is hard pressed to get rid of the home. Again, when people have money, they know they have the buying power to choose the piece of luxury real estate they want, rather than a piece they need. Sellers have to make sure their homes are the BEST of the best and in optimal condition in order to sell fast and sell first.

When trying to sell a luxury home, the open houses and word of mouth recruiting that may work for a less expensive home is not going to cut it. There are less buyers with the buying power to land a mortgage for a luxury home and that means extra work for the real estate agent. In addition to the open houses, the agent needs to publish the home all over the Internet, in local newspapers, on the front page of their website and in print magazines. These listings need to be refreshed often and must include a huge list of pictures showing off the BEST parts of the luxury home.

You can sell a luxury home even when the rest of the world isn’t buying and while the work and labor will be hard, the commission is well worth the time.

There are several forms of unfinished home on the market today, but the start homes are the most money saving for the potential buyer. The unfinished starter home will often offer a main level that is move in ready with a second level and / or basement that have not been completed. These homes can be used as a primary residence while the remainder of the construction is completed.

Other types of homes that fit into the unfinished category include homes that have planned garages or additions that were started but not completed. If the landscaping is not finished, the home could also be listed as unfinished.

The Builder and the Unfinished Home

If the builder is still in the picture, the home could be finished according to the original plans with the purchase price being higher. The buyer could help to keep the price of the home lower by talking with the lender about the proposed upgrades on the home and cutting out some of the more expensive upgrades that are causing the price to increase. Expensive decking, landscaping and basement finishing can cause the price to jump dramatically. While the lender may not agree to all of the changes, there is no harm in asking for the bare essentials in order to keep the price low.

Lending and the Unfinished Home

When it comes to getting a mortgage for the unfinished home, the lender may require the home be mostly finished before they will honor a mortgage. This is due to the security the lender has in their ability to resell the home in the case of foreclosure. If the bank is requiring landscaping or minor repairs before the mortgage will be approved, the buyer could work with the builder to complete these items. The buyer must remember that the builder does not have the money to put into this home and is selling the home for a cheaper price because it is unfinished. This means the buyer may have to fund the repairs or landscaping in order to qualify for the mortgage.

I know that when I am a customer for a service that I rarely utilize, I appreciate understanding “how it works” as much as I need to trust the professional with who I am working. Lenders want to know the customer’s track record at paying their debts.That’s where the credit rating comes in. If a new credit report is pulled before closing, it suggests that the consumer may be looking to acquire more debt—and this could jeopardize the affordability of the mortgage. Do not even talk to somebody in an industry that pulls credit reports (like a car dealer) until after your closing. Activity in your credit report might indicate your future inability to repay the loan, so the key is to “lay low” until after closing.In summary: If you are looking to buy a home (and get a home mortgage loan), then you need to be aware of what the mortgage underwriter is looking at when analyzing your “willingness and ability” to repay the loan.

All new activity in your credit history is “bad,” so limiting your financial activity is critical. A buyer’s best bet is to work with a mortgage lender who will take the time to offer professional guidance and explain up front exactly what they need to do to close on time (and then follow that advice!).

We know how important the mortgage process is for more than 80% of our customers, so we thought we would share some insights regarding how lenders view credit to ensure a smoother mortgage experience. I know that when I am a customer for a service that I rarely utilize, I appreciate understanding “how it works” as much as I need to trust the professional with who I am working.

Lenders need to know: can you afford the payment? Before offering a loan, the lender examines debt-to-income (DTI) ratios. If a buyer under contract takes on additional debt, then that could change the ratio—potentially making the mortgage unaffordable. That’s a situation that both lenders and buyers want to avoid. Keeping your total debit-to-income as low as possible makes lenders feel more confident that you can afford the monthly mortgage payment.

Lenders make a loan offer based on 3 to 4 months banking history. By looking at a borrower’s bank statements over several months, a lender has a pretty good idea where the borrower’s money comes from and where it goes. An unusually large withdrawal or deposit before closing may require further documentation, so the lender knows the customer isn’t accumulating additional debt. In other words, a borrower will have to justify his or her recent financial past, so if you are thinking about buying a home soon, start planning now.

A friend of mine recently moved into a new neighborhood and when the kids started school everything seemed perfect. Then, one day after school her daughter complained of losing a friend because she would not talk about religion with the young girl on the bus. What could she do?

When neighbors put you in a tight spot or do something you don’t like, the best solution is common kindness.

•    Approach the neighbor on friendly terms.
•    Introduce yourself and start a conversation.
•    Lead up to the problem at hand, but never make it seem like the issue is the only reason you are talking.
•    Discuss solutions to the problem.

Once the initial conversation is over, it is important to continue the relationship while living in the neighborhood. Having some sort of friendship with the nearest neighbor is not only cordial, but a great choice in personal safety and support.

•    If there is a storm coming through – the preparation could be divided.
•    If there is there is an emergency – a babysitter is there.
•    If the lights go out – the support is closer than you think.

The Unruly Neighbor

Of course, there is more than one type of neighbor in the world and the unruly neighbor is the one that no one wants to live next to. These neighbors are partying all the time with cops at the home and music playing until the wee hours of the morning. A confrontation seems like the worst solution, and it probably is. Often, homeowners who find themselves in this situation will need to involve the law in order to resolve the issues.

The neighbor is a part of the home for all intensive purposes. When walking around a potential new home, make sure to take a trek to the nearest neighbors home and the one beyond that. Finding out there is a bad neighbor being signing the contract can save years of disappointment and grief and all it takes is a bit of time