Chance Gates' Blog

By: G. M. Filisko

http://members.houselogic.com/articles/8-tips-finding-your-new-home/preview/

Published: February 10, 2010

A solid game plan can help you narrow your homebuying search to find the best home for you.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

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As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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RISMEDIA, August 25, 2010–Consumers with strong financial knowledge begin saving earlier and are more confident in their everyday financial tasks, according to the TD Bank Financial Literacy Poll released by TD Bank.

Education at an early age is key to achieving financial confidence. Many consumers doubt their financial skills and believe they were not taught enough at a young age and feel saving money is difficult. TD Bank surveyed 2,160 consumers to better understand the financial literacy and attitudes of consumers in the Northeast, Florida and Mid-Atlantic.

“The poll reveals that it is imperative for parents to act as the primary role model to their children if they want financially successful children,” says Suzanne Poole, executive vice president, retail sales strategy and distribution, TD Bank. “Starting financial literacy lessons early results in adults who are more confident in their money decisions, are more financially literate and are more skilled at saving money.”

Who is Your Financial Role Model?
Although this is not an easy question to answer, more than one-quarter of consumers struggled to identify any financial role models. The poll also revealed the primary sources for financial information and help in managing finances. Forty percent of consumers in the Northeast and 38% in the Washington, D.C. region turn to family members for financial advice; while Warren Buffet and famous financiers often edge ahead of financial advisors. In fact, only about one-quarter of the consumers surveyed have a financial advisor or financial planner.

Consumers with “good” financial literacy started learning about money slightly earlier than the average consumer, but only one-half of consumers started learning or having conversations about money under the age of 18. From those who did start learning about savings at a young age, 77% of New Englanders, 80% of Mid-Atlantic residents and 78% of Floridians say they learned from their parents.

Financial firsts are important to financial literacy confidence and education. Although most polled, about 70%, can remember opening their first bank account, only half can remember their first deposit or investment. However, those with “good” financial literacy, about 57%, could recall their first deposit amount.

“TD Bank believes it is important to not only start having financial conversations at a young age, but to also make those first financial experiences memorable,” said Poole. “More than 22 years ago, we created the WOW!Zone, a free, financial literacy program to help children ages 5-18 develop strong financial skills, in school and online. It is a great tool for parents to use to make learning about money fun!”

Responsibility and budgeting are taking a more prominent place at the dinner table today than when parents were younger. Sixty-two percent of parents versus 77% of children today learned about the importance of money. About 75% of parents are teaching their children about financial responsibility as well as saving, budgeting, the value of money, credit cards, etc., while only about 15% of parents were taught about investments and only about 20% learned how to use a credit card.

Poole added, “Today’s children are not learning about money that differently than their parents did. Parents today are taking primary responsibility in financial education. Parents should ask themselves if they are the financial role model they need to be. Starting young is not the only key to success. We found that the topics parents talk about and creating memorable financial moments matter, too.”

Other key findings from the survey include:

• About 94% of those polled with “poor” financial literacy skills wished saving money wasn’t so hard versus 65% with “good” skills.
• About 40% of consumers in New England, the Mid-Atlantic and Florida with “poor” financial literacy skills are confident in making financial decisions versus 93% with “good” skills.
• About 81% of those surveyed wished they would have started saving earlier, and about 55% of them were definitely not taught when young.
• 71% of consumers in the New England, Mid-Atlantic and Florida regions are confident in their understanding of everyday financial tasks such as paying bills on time, followed by balancing their checkbook.

The majority of consumers in the New England, Mid-Atlantic and Florida regions are either extremely confident or very confident in financially preparing their children; consumers responded that responsibility, saving money and budgeting money are the most important topics to teach children today.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. I have free access to the MLS and you can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

By Dan Serra

RISMEDIA, June 28, 2010–(MCT)–While most financial-savvy consumers do their best to avoid debt, one debt that is unavoidable to many families is a mortgage. Because many of us feel more in control of our home and expenses without a mortgage, a common question is whether to pay it off as quickly as possible.

The answer depends on each person’s financial situation. A mortgage can actually be a blessing to some.

For example, mortgage interest is tax-deductible. This deduction saves taxpayers about $103 billion a year, according to the U.S. Treasury. The benefit is less to owners of low- to moderate-valued homes who may not have much interest or enough to claim it by itemizing deductions. But for families with a higher net worth, it allows a tax savings and may encourage them to buy larger homes.

With tax brackets for the wealthy rising next year, this tax break becomes more valuable. When the break is included, a 6 percent mortgage could have a rate closer to 4 percent in reality. Calculate your mortgage’s effective rate by subtracting your tax rate from 100 and multiplying that number by the interest rate. For example, a 28 percent tax bracket with a 6 percent mortgage would result in (.06 x 72) to equal the equivalent of a 4.32 percent mortgage rate after considering tax savings if itemized. That helps the interest look less daunting.

In addition, with the possibility of investing with a goal of a 5 or 6 percent return, instead of putting that money into a mortgage the homeowner could get a return higher than the effective rate, which could help grow net worth. On the other hand, if the effective rate is higher, it may make sense to pay down the mortgage.

Another situation that makes paying off a mortgage attractive is for someone at risk of bankruptcy. Many states offer protection from creditors seizing a home to pay debts. If a home is paid in full, it is more likely the owner could stay in it if he goes broke, providing he can pay for the upkeep.

Money taken out for a mortgage also could reduce net worth later in life. The potential for higher investment returns are gone; that money will not be able to grow if investments grow over the long term. Not to mention having too much invested in a house. That could be detrimental at retirement. While we can get a loan for a house, there are no loans to finance retirement.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

Your credit score will directly affect how much and at what rate you will be able to borrow from a lender.  Whether you’re looking to purchase a home or simply finance a car, you should always have an idea of what your score is and what factors may affect it.

A great way to start understanding your credit is to obtain an actual copy of your credit report.  According to the “Fair and Accurate Transactions Act” (FACT ACT), you are entitled to receive a free copy of your report from all three major credit companies.  Your actual scores will be missing from the report as you are only entitled to receive the report itself for free.  If you are interested in seeing your scores, you will have to pay.  Each company uses a slightly different format, but once you start to go through them you will get an idea of how things are being reported.

Some factors that will bring down your scores are as follows:

1. Maxing out your available credit.

2. Having few lines of credit with low use.

3. Applying for credit at many places within a short period of time.

4. Errors and multiple entries on your report.

5. Allowing unpaid bills to go into collection agencies.

Factors that will improve your scores:

1. Constantly using your credit

2. Paying your credit/bills back on time.

3. Multiple lines of credit in good standards.

A great way to enhance your credit is to obtain around 4 different lines of credit.  Use them to buy your big ticket items, and try to pay them down as fast as you can.  But be careful not to pay them down to zero.  Most lenders and other creditors want to see that you are using your credit often, but not over exhausting your limit.  If they don’t see enough activity, they don’t have much information to judge your amount of credit responsibility on.

When you review your credit report, be on the lookout for items that shouldn’t be there.  Most items are suppose to drop off after seven years (there are some exceptions), however sometimes you will see things that are still being reported that shouldn’t be.  Any accounts that you closed should state “closed by consumer.”  Many times you will find that these accounts are being reported as “closed by creditor.”  This type of reporting has a negative impact on your credit.  Sometimes you will also find the same account being reported multiple times.  If it’s an account in good standing, this isn’t really a problem.  However if a negative account is being reported twice, it may be impacting your credit more than it should.

As a Reno/Sparks real estate professional, I encourage all questions or comments on the Reno/Sparks real estate market or any of the articles posted on this blog.  I can be reached by email at:   chance at ballard-company.com or http://www.myspace.com/chancegates