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What NOT To Do When Buying A Home


If you are in the process of buying a home or just beginning your search, you need to be aware of what NOT to do in order for the process to go smoothly.

Do NOT change jobs or become self-employedWhat NOT To Do When Buying A Home

The lenders need to see stability in your work history and if you change jobs you are starting the process all over. Plus, they require 1 month pay stubs at the closing of every loan to verify your income and you will not have that by the time your loan closes. Also, if you desire to be self-employed, you must wait until your loan has closed escrow. When self-employed, you are required to have 2 years of tax returns in that profession.

Do NOT open new credit

When you are approved for your loan to buy a home, it is based on the credit history you currently have and the liabilities counted against you. When you open new credit you are telling lenders you are a high risk. Also, it can affect your credit score, which you want to remain as high as possible.

Do NOT buy a new car

This will definitely affect your qualification for buying a home. You should never add more debt when applying for a loan. The new car payment will be counted against you, increasing your debt ratio which ultimately qualifies you for less money. Wait until you own the home before you buy a new car.

Do NOT finance or charge furniture to a credit card

We know how exciting it is when you are buying a house and you want to pick out all your new furniture, but you must wait before you buy the furniture for your home. You don’t want to finance anything in the process of buying a home. You also don’t want to lessen the amount of cash in your bank accounts because lenders like to see 2 months of your funds sitting in your account. So the best thing is to wait to furnish your home until you have the keys in your hand.

Do NOT change your bank

Lenders look for stability when approving a loan for a new borrower to avoid lending to borrowers who are high risk. They need to see 2 months bank statements before approving your loan, so you need to stay with the same bank.

Do NOT be late or miss a payment for any credit account

This is a huge factor. Lenders are providing loans to borrowers who are responsible with credit and can prove they will repay the loan on time. If you are missing payments or have late payments on your credit report, you are telling the lenders you are high risk and they will not lend you the money to buy a home. Be responsible and pay every account on time!

These are a few of the most important things you should not do when buying or thinking of buying a home. Following these guidelines will help your loan transaction go smoothly and get you into your new home faster.

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Save Money on Summer Electric Bill


With the summer heat on the rise, you may be dreading the summer electric bill. We want to provide you with smart and simple ways to help reduce your electric bill and save you money this summer.

Set AC Temperature
When you are home set your AC between 70 – 75 degrees. However, when you leave your house, change the thermostat to 80 degrees. You don’t need the house cool while you are gone. The reason we don’t say turn the air conditioning off is because it could potentially cost more to re-cool the house entirely once you are home. But instead, lower the degrees when you arrive home and let it cool down within minutes.  This is just one simple tip that will hopefully help.

Move Hot Appliances
Another great tip is to keep heat-producing products a few feet away from the air conditioning unit.  These items would be lamps, computers, televisions, etc. The reason for this is those items produce heat, and can trigger the AC and make it run longer than necessary.

Heat Rises
If you own a two-story home, chances are the upstairs is much hotter than the downstairs. If this is the case, try running the AC upstairs and keeping the downstairs AC at a higher thermostat or utilizing fans instead.

Fan Investment
Consider investing in a whole house fan. This is one of the best investments that you install into your attic. Rather than having to run your AC, you open your windows and turn on the whole house fan. It works by pulling in the cool air through the windows from outside in a matter of seconds. Great investment!

Homeownership Rate Dropping


According to a recent article from CNN Money, the percentage of homeowners in the U.S. has dropped to 65.4% during the first quarter of 2012. This data was based on the latest Census Bureau statistics. The homeownership rate has not been this low since 1997. The peak homeownership rate was 69.2% in 2004.  

What is the reason for the decrease in the homeownership rate?

Due to foreclosures increasing in the market, many homeowners have become renters. The demand for renting has drastically increased with the shift in the market.

According to the Census Bureau & CNN Money, “The rental vacancy rate dropped to 8.8% during the first quarter, down from 9.7% a year earlier and from 9.4% in the last quarter of 2011.”

In fact, many investors are purchasing homes in order to turn them into rentals to meet the new demand and gain part of the market share.

It is actually cheaper to purchase and own a home versus renting. Right now rent is increasing due to demand while the home prices have fallen. However, many people aren’t able to take advantage of the low home prices because they were affected by the foreclosures and are forced to rent.

The lowest homeownership rate is in the West at 59.9%. The highest homeownership rate tends to be in the Midwest with 69.5% according to the Census Bureau.

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