Great Travel Tip...

If your like me and my family, you use your time off to travel and see friends and family who live out of the area. One of the biggest problems we have is deciding what to do with our pets. I found a couple of great websites, they are PetsWelcome.com and VRBO.com and are a real lifesaver for pet owners! PetsWelcome.com is very easy to use.. all you do is put in the name of the city you are traveling to and it will give you the name of all the hotels around the area that allow pets. It maps your itinerary and shows where all of the pet friendly hotels are along the way. VRBO.com has vacation rentals offered by the owners and allows you to choose pet friendly properties. Make sure to use PetsWelcome.com and VRBO.com to plan your next trip!

Do you have the characteristics to be a home buyer?

Do you have the characteristics to be a home buyer?
Did not know you needed certain characteristics to be a home buyer, did you? Well, you do not really, but it definitely helps to have them because the following ones will help you determine if you will make a good home owner!

Characteristic 1: You conform to the market.
What do we mean by "conforming?" We mean that you have researched the market and have realistic expectations of what you can afford. On the other hand, if you are a potential buyer who says, "All these homes are overpriced so I am not going to pay that much money," then you are not really serious about owning a home. The market sets overall prices, not you!

Characteristic 2: You have savings!
Ideally, you have enough in savings in order to pay two to three months of mortgage payments. This is a reserve, and mortgage lenders love people who have the financial wisdom to prepare for the unexpected (job loss, illness, etc.).
Lenders can see that you are a minimal risk and are more willing to loan you money for a mortgage.

Characteristic 3: You love to do maintenance (or can at least tolerate it)
There is no doubt about it - you have to do upkeep on a home if you want to maintain or even increase the value of your property. There are windows to wash... a lawn to mow... and many minor repairs along the way. Some people love the challenge of this; others hate it. If you hate it, then home ownership is not for you.

Characteristic 4: You are employed with at least two years on the job.
One thing that lenders demand is a history of stable employment. So, ideally, you have at least two years of employment at the same company or, at least, in the same field.

Characteristic 5: You plan to stay in the area.
If you are uncertain whether you will stay in a neighborhood or city, then it is a wise idea to put off home ownership for the time being. If you do buy a home, you could be forced to sell at a "fire sale" price and not have enough equity to pay commissions, etc. Of course, you can rent out your home, but, frankly, most sellers find this a tremendous hassle and a drain on their time and emotions.

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com

When buying a home, plan for closing costs!

Sometimes in the excitement of purchasing a new home, buyers forget to plan for closing costs and the amount can be a shock on the signing day. So, plan for closing expenses ahead of time. You will need to write a check for such items as taxes, title insurance, prepaid homeowners insurance, points, lenders' fees, etc. Closing costs can range anywhere between 2% to 3% of the selling price of the house. The best way to prepare for this day is to get a closing cost estimate from your lender very early in the loan process. That way, you will not be surprised and can save up the amount you need and will be able to write the check without suffering an emotional meltdown! I will be happy to prepare a closing cost estimate for you. 

Feel free to contact me.

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com

What are the rewards for buying a home?

What are the rewards for buying a home? Beyond the joy of owning your own property and creating a home for your family, there are several potential financial rewards earned through home ownership. The first is appreciation. Despite the recent "mortgage meltdown" and decline in prices, historically your home is worth more when you sell it than when you bought it. That is why a home purchase is considered a great long-term investment. Financial flexibility is another benefit that comes from appreciation. When your home appreciates, you can sell it and use the profit to buy a bigger and better home... tap into the equity (what your home would sell for minus what you owe on the mortgage)... pay college tuition for the kids... or use it to fund your retirement. Another benefit is leverage. Buying a home allows you to use borrowed money (the mortgage) to profit on later price increases (appreciation) on property you have not paid for. Finally, there is the great benefit of tax breaks! You can deduct property taxes and mortgage interest and keep up to $500,000 of gains! All in all, home ownership is a wise investment in your personal and financial future!

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com

What Are the Risks of Buying a Home?

What are the risks of buying a home? Home buying is an investment. And, as with any investment, there are certain risks you need to consider (although, overall, home ownership is one of the best investments you can make). Review the following risks to make sure you are ready for the responsibility of home ownership. Risk 1: A decline in value As we have seen in the recent "mortgage meltdown," the value of a home can decline. Although, historically, this does not happen often, it still tells you that there is no guarantee that the value of your home will appreciate. Over the long run, however, home prices do tend to appreciate, and home ownership is far less risky than the stock market! Risk 2: Maintenance costs It costs money to maintain a home - paint, siding, roof shingling, heating, ventilation, and air conditioning costs, etc. That means you need to have the income to pay for routine maintenance costs as well as the inevitable big-ticket items that come with long-term home ownership. Risk 3: The loss of other investment opportunities In the short run, alternative investments like stocks, bonds, etc. may give you a better return in less time if their value rises faster than that of the homes in your areas. In such a case, you might do better as a renter or investor. However, keep in mind that, as stated above, this is a short-term strategy.       Risk 4: Less flexibility It is a fact that a home ties you down to a specific neighborhood and city. Many people like this fact because it allows you to "set roots" in a community. However, home ownership does not make it easy for you to take a new job elsewhere or move to a different location. And, if you have to sell in a hurry due to a divorce, job loss, etc., then you can take a heavy financial hit. Finally, if you have a large mortgage payment, it can make it difficult for you to invest money else where (savings, investments, vacations, etc.). If you are willing to shoulder those risks, then home ownership is for you!

Please contact me regarding interest rate, loans in general, or any other questions.
Mike
(650) 766-8500

http://www.bayareahomebuyersinfo.com/