Know Your Budget Before You Buy

There are many things you need to consider before buying a house, however there is one that should take precedence… your budget.


Most people don’t take a good hard look at their budget and crunch numbers before buying a home. It really is the smartest thing you can do to prepare for acquiring a new home. First, add up all of your income, if you are a couple, add together all sources of income, AFTER taxes. Then add up all of your monthly expenses, this includes everything from utility bills, to credit cards, car loans, food, entertainment, dry cleaning, hair cuts, etc. You must take everything into account to see how much you can comfortably spend on a mortgage payment each month.

However, you must also leave enough room in your budget for the expenses of being a homeowner – repairs, appliances, decorating, etc. This will give you a nice buffer when you come across unexpected expenses and it will help you in deciding on whether you can afford the repairs on the “fixer-upper” you thought would be a great deal or go with the one in better shape.

Thoroughly planning a budget will ensure a much more enjoyable homeownership experience.

Know Thy FHA Changes...

An FHA loan is a very valuable tool with it’s low down payment requirements, lower credit score requirements and the allowance of non-occupying co-borrowers. In the recent slow economy FHA loans have been in big demand, but unfortunately, dealing with that high capacity has lead the government to make some changes. Some changes are already in the works, inevitably more will follow.


One such change that has already been made is An increase in FHA Up Front Mortgage Insurance Premium. This change became effective April 1, 2010. UFMIP went up from 1.75% of the loan amount to 2.25% of the loan amount.

Impact to consumers--Higher up front and/or monthly expense if fee is financed.

Two changes that are in the works and will likely take effect:

1. An increase of FHA Monthly Mortgage Insurance. If enacted it will be an increased monthly expense to consumers.

Impact to consumers--Buyers with tight debt ratios will qualify for lower loan amounts.

2. A decrease in maximum seller contribution from 6% to 3% of contract price. If this does come to pass, it may negatively affect sales in some markets.

Impact to consumers--Those who lack cash for closing costs or downpayment assistance and rely on seller contributions for such, will no longer be in a position to purchase.

These are somethings to be aware of when considering an FHA loan. Don’t necessarily leave everything up to your mortgage professional, feel free to do some reading up yourself and ask questions. An educated consumer is always a better consumer!

The Price is Right!

Some 24 percent of listings currently on the market in the United States as of July 1, 2010, experienced at least one price reduction, according to Trulia.com.  

What does that mean to you, the buyer?  It means there are deals to be had.  It's still a buyer's market.  Your negotiating power is stronger than ever.  There is still a slight imbalance sometimes between what sellers think they should get and what the market will actually bare.  So it is to the buyer's advantage to have an astute real estate agent research other comparable sales in the area and negotiate with the seller.

What does that mean to you, the seller?  It means you need to choose a real estate professional who will price your house right.  You need to have an agent who will research recent sales in the area and find out what your home is really worth and price it accordingly.  This will lend itself to getting your home sold quickly without any price reductions that just prolong the sale.  An agent such as myself, will price it right the first time!

Despite some painting a gloomy economic picture right now, it is really a great time to move real estate!

What an awesome day yesterday. The unexpected unfolded and it made for a really terrific 4th of July celebration.  Great friends Marisa, Phil, Natalie and Philip, Bruna and Rocky joined us for the Town of Penfield Parade. Panini and a beer afterwards for lunch and Mesquite smoked ribs and fixens for dinner.  Such a treat to be able to spend some time with family and friends and to cook an amazing meal. 

Market Ambles Towards a Solid Recovery

Wow, what a June! Figures all of the pre incentive deadline transactions had to close sometime, eh?


In my real estate practice I noticed a significant drop in activity in May. Expected I guess but kind of scary in light of the unpredictability of the market and where its been the past 24 months! Fortunately both buyers and sellers seem to be back in play. The market quiets down in July and August. I'm always bullish so I think 2010 will break the quiet trend during these months.

Discover the featured listings at http://www.realestateonthemove.biz/. New listings added everyday.