My New Blog

2009. Wow! What a year it has been.  The housing market in the first half was struggling to get back on its feet.  The stock market was up and down. Mostly down. Terrorist activity still active in various parts of the world.  Pirates still hijacking freighters for ransom. Even under the watchful eye of several naval vessels from various countries.  It is quite embarrassing for the few countries of power to have a few pirates take a ship over when their navy is guarding those ships closely for hijacking activity. 

President Obama ended his first term on a high note. We have seen passage in the Senate and resent to the House of a healthcare bill that will overhaul the current system.  This will give way for those, who cannot afford health insurance and on public assistance.  It will benefit the seniors,and those that are just barely making minimum wage.

Back to the housing industry.  In the last quarter of 2009 housing sales were up compared to a year ago. This is due in part interest rates were historically low and the stimulus plan the Obama administration put in place for first time homebuyers.  The second part of the housing stimulus package will now include current homeowners who are looking to move.  They will be able to claim $6,500 credit on their tax returns in 2011.  First time homebuyers will still be able to get $8,000. 

Foreclosures will be slightly down this year in 2010. Lenders are trying to appease the Obama administration for helping those that are struggling to pay their mortgage with lower payments.  So far these lenders are behind in the goals the Obama administration has set. 

We are going to see an increase in refinances this year.  People's expectations for the new year is on a high note. 

So, instead of just sitting around waiting to see what will happen in 2010, get a pen and paper or go into Word on your computer and write out your goals or resolutions for 2010.  After you have completed writing your goals or resolutions email them to everyone you know. Therefore, those that have your goals or resolutions will help you stay on track.  Let's finish 2011 stronger than 2010 and have a prosperous and successful 2010. 

Next week's blog will be about housing finances. 

Purchasing a home is the one big financial decision a person will make in their lives. For some people they will purchase more than 1 home in their lifetime. No matter how many times a person decides to sell and buy a home there is a financial responsibility that goes with owning a home.

Before purchasing a home one must look to see how much cash is in the bank for down payment, closing costs, home inspections, and other costs that may come up after you get the key to the home. I will discuss the finances that are associated with owning a home. The down payment on a home can range from 3.500% to 20% depending on the type of program you and the Allied Mortgage Group mortgage professional decided on which is the best loan program is for you. The realtor will expect you to put money down when you sign the Agreement of Sale and then 14 days after signing the Agreement of Sale the second half of the deposit will be due. This could range from $500-$2,000. The higher amount could be higher if you inform the realtor you want to put more down. The remainder of the down payment will be collected at the closing table. It is recommended to have a home inspection that can cost anywhere from $350-$500. At the closing table a certified check will be due. If you have a seller assist, where the seller is going to pay some of your closing costs, along with the money you had already put down at the time of signing the Agreement of Sale will be deducted from the closing costs. The Good Faith Estimate, which the Allied Mortgage Group mortgage professional provided to you at the time of the application, shows the settlement charges. The Allied Mortgage Group mortgage professional will inform you the exact amount of how much to bring to the table.

As a new home owner you would want to make changes to the home. These changes could range from some minor repairs to major work. These changes could include hanging new drapery or window shades, painting, changing carpets, to replacing the entire kitchen and/ or bathroom. These changes can cost anywhere from $20 to $10,000 or even higher.

Once you have fully settled into your new home you can now relax; Right? Wrong. The upkeep never stops. Here is a sample timeline:

Fall: Rake the leaves and clean up the yard. Drain the pool for the winter.

Winter: Shovel and salt to keep steps and sidewalks clear.

Spring: Plant new shrubbery and plants, or start a garden. Also, you need to clean out the gutters or repair any cement walkways, put a new roof on and other repairs that you may want. Prepare pool for summer.

Summer: Mow lawn and trim hedges. Relax by the pool.

Pay taxes and homeowners insurance on time or it may be included in your monthly mortgage payment. This is your domain and all the hard work is earned that you can say you did it yourself.

Owning a home is priceless.