Ready to Buy?

Q: I am so tired of renting! What do I need to do to prepare for buying my first home?

A: Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. Talk with one or more mortgage lenders about the loan amount for which you might qualify. Interview at least a couple of lenders.

Develop a wish list of what you'd like your home to have. We have a form that you may use to do this. Then prioritize the features on your list.

Select three or four neighborhoods you'd like. Consider items such as schools, shopping facilities, area travel routes. walkability, public transportation and safety.

Determine if you have enough saved to cover your down payment and closing costs. Closing costs, including taxes, escrow fees and title reports, average between 2-4 percent of the home price.

Get your credit in order. Obtain a copy of your credit report. Free copies are available annually from freecreditreport.com

Determine how large a mortgage you can handle. Also explore different loan options and decide what's best for you.

Organize all the documentation a lender will need to preapprove you for a loan. The lender will provide a checklist of information they need.

Do  research to determine if you qualify for any special mortgage or down payment assistance programs. There are many first-time homebuyer, owner-occupied, and special interest options available for which you may be eligible. Ask during your lender interviews to see which ones they know.

Calculate the costs of homeownership, including property taxes, insurance, maintenance and association fees, if applicable.

And when you are ready to buy a Seattle home, send Wendy Ceccherelli a private message at HomeLandInvestment@gmail.com or call 888-621-4999.

Happy Investing!

Home Ownership Trends

What is happening to the American dream of home ownership? Home ownership hit a low of 63.7% in the first quarter of 2015, down from its high of 69.2% home ownership in 2004.

This decline represents 6million U.S. households that have transitioned to rental housing.

Some of the reasons may have to do with tougher mortgage underwriting standards in the form of higher down payments and credit score requirements. Certainly, many people are still skittish following the great recession in the housing market in 2007-8.

Traditional home ownership rates between 1965 - 1995 were between 63-65% of the population, so this latest dip may represent a return to more "normal" rates of home ownership. Yet there are some disturbing factors affecting this.

Millennials, who are forming households now, are facing their own issues of debt, with student debt now at a record $1.2 TRILLION.

And as the income gap grows, the level of home ownership is much lower for people of color. Renting will be the only option for many minority families for the foreseeable future.

Investors will want to consider rental properties as a good income source for the coming years.

Happy investing!

FREE Energy Efficiency Resources

As mentioned in my previous blogs, I have been taking a good deal of training in green development, low-impact development, and energy efficiency. There are some great resources out there to help homeowners, landlords and investors save on their energy costs, and mitigate damage to the environment.

Here are a few good resources to check out:

PSE will do a FREE HomePrint assessment for customers, to check energy loss in the house, and make recommendations for improvements.

www.dsireusa.org will identify all utility rebates available to homeowners.

The true costs of owning a home include the hidden costs connected to location, and maintenance costs, in addition to utility costs. Find out how much it costs for you to commute from where you live. For details, see http://www.prnewswire.com/news-releases/walk-score-launches-transit-score-and-commute-reports-100740844.html

Be smart about the costs of owning a house, beyond its purchase price!

Happy investing!