THE ROAD MAP TO YOUR HOME!: NARROWING THE SEARCH

“If you don’t know where you’re going … you’ll probably end up somewhere else.” Taken from a book title, this quote conveys a very simple message: To achieve an objective, create a plan!

If you plan to buy a home soon, you will need to know “where you are going.” For a most enjoyable home-buying experience, first build a road map to your new home, a list of priorities that will lead you to your objective—a new home!

The first priority is time frame.

Write down the date by which you would like to move in to your new home: ________________

Keep in mind that it may take 30-90 days (or more) to locate the right home, secure financing, and complete the home-buying process.

The next priority is to develop a detailed description of the home you hope to find. The following page contains a Home Search Criteria form to help you distinguish between “Need to Have” features and “Want to Have” features. Be specific. Include architectural style, number of bedrooms and baths, location, lot size, and other special requirements. Number your preferences in order of greatest importance to you.

This form, along with the information you share during your initial consultation, will enable your real estate agent to narrow your home search. He or she will take this information and enter your requirements into the Multiple Listing Service (MLS) system, and then use personal market knowledge to come up with a list of homes that best meet your needs and wants.

During the home search, your real estate agent will:

• Discuss the benefits and drawbacks of each home in relation to your specific needs.
• Keep you informed on a regular basis.
• Check the MLS database and talk with other brokers regularly for new listings.
• Prepare a list of all homes that best meet your needs and wants.
• Keep you up to date on changing financial conditions that may affect the housing marketing.
• Be available to answer your questions or offer assistance regarding your home purchase.
• Discuss market trends and values relative to properties that interest you.

LOAN APPLICATION CHECKLIST

General:

• · Picture ID with Social Security Number
• · Payment to cover application fee.
• · Name and complete address of all landlords (past 2 years).

Income:

• · Employment history, including names, addresses, phone numbers, and length of time with that company (past 2 years).
• · Copies of your most recent pay stubs and W-2 form (past 2 years).
• · Verification of other income (social security, child support, retirement). If you are self-employed: Copies of signed tax returns including all schedules (past 2 years), and a signed profit and loss statement for the current year.
• · If you are retired: tax returns (past 2 years).
• · If you have rental property income: Copies of all lease agreements.

Assets:

• · Copies of all bank statements from checking/savings accounts (past three months).
• · Copies of all stock/bond certificates and/or past statements/retirement accounts.
• · Prepare a list of major household items and their values.
• · Copies of title documents for all automobiles, boats, or motorcycles. Face amount, monthly premiums, and cash values of all life insurance policies (Cash value may be used for closing costs or down payments.
• · You need documentation from the carrier indicating cash value).

Creditors:

• · Credit cards (account numbers, current balances, and monthly payments).
• · Installment loans (car, student, etc.) Same details as for credit cards. Mortgage loans (property address, lender with address, account numbers monthly payment and balance owed on all properties presently owned or
• · sold within the last 2 years). Bring proof of sale for properties sold.
• · Childcare expense/support (name, address, phone number).

Other:

• · Bankruptcy – bring discharge and schedule of creditors.
• · Adverse credit – bring letters of explanation.
• · Divorce – bring your Divorce Decrees, property settlements, quitclaim deeds, modifications, etc.
• · VA only – bring Form DD214 and Certificate of Eligibility. Retirees – bring retirement and/or Social Security Award Letter.

This Month In Real Estate August 2011 Edition

Alex Hayes Homes

http://alexhayeshomes.com
alex@alexhayeshomes.com

(206) 605-1601 (Office)

Alex Hayes Seattle Homes
1307 N. 45th Street, Suite 300
Seattle, WA 98103

August 2011 Market Update

The U.S. housing market has shown increased stability in home sales during 2011 compared to the previous year. Home prices are up 18% since their low in February. Signs of recovery remain mixed in the economy-employment and GDP came in less than expected while the strong points were in consumer confidence and new home starts.
The debt ceiling has been raised without any drastic changes to occur immediately. Although this prevents a sudden shock to a weakening recovery, over the next year and a half, experts anticipate considerable changes in how the government spends and collects money. The uncertainty of what is to come and how it will impact various industries will likely cause some to play on the safe side. The good news is that the government remains solvent and will be able to pay its bills without major disruptions.
Economic improvement typically spurs rising interest rates in order to rein in inflation. Although inflation has been a source of recent concern, the Fed appears confident it will remain in check for the near term. Meanwhile, buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability.

This Month’s Video

Interest Rates

Mortgage rates remain at record lows after steadily declining in May, primarily due to uncertainty in the global and domestic economies. While these incredible rates represent a significant savings for home buyers, experts note that for the benefits to fully be realized, lending conditions must loosen to enable more buyers to take advantage of them. As overall economic activity gets back on track, rates will likely rise to keep inflation in check. In other words, the window of opportunity for buyers to lock in these historically low interest rates may not remain open much longer.

Home Sales

Home sales in June were down 8.8% compared to the same month last year when the impact of the tax credit was at its peak. Compared to the previous month, however, sales held relatively steady at 0.8% below May’s numbers. NAR Chief Economist Lawrence Yun cites an unusually high number of contract cancellations the month before as an explanation for the slight easing of sales in June.

Home Price

For the first time in a year, home prices are up year-over-year and month-over-month. This marks only the fourth time that prices have increased since June 2006. Home prices rebounded 8.9% in June with median home prices rising to $184,300. This is 0.8% above the year-ago level. Median home prices remain close to 2003-2004 levels. The combination of low prices and historically low interest rates means that home affordability is extremely favorable.

Inventory

The supply of homes measured in months on the market at their current pace was up during June compared to May. This is keeping with inventory levels typically rise during the summer months. Month’s supply remained 24% below the peak of 12.5 months in July 2010 and 14% above April of 2010 when the home buyer tax credit was in full swing.

Debt Ceiling Deal

After a drawn-out debate between the House and the Senate, Democrats and Republicans; Congress and the President reached a deal on August 2, 2011, to raise the debt ceiling. Because of the decision and the additional borrowed funds, the United States is safe from defaulting on its debt and will be able to pay its bills. The deal includes the following:
Immediately cuts spending by $917 billion and raises the debt ceiling by $400 billion. It will raise the ceiling by another $500 billion in February, providing funds through early 2013.
Creates a joint committee of twelve members from the House and Senate that will make recommendations for $1.5 trillion in deficit reduction measures, and if the plan is rejected by Congress, several automatic spending cuts will take effect.
Requires Congress to vote on adding a balanced budget amendment to the constitution, which would mandate that future spending cannot exceed revenues. If it passes, the debt ceiling can be raised by $1.5 trillion. If not, then it can only be raised by $1.2 trillion.
Lack of concrete details about how the deficit will be reduced sets the stage for continued political debate in the coming months and years. And with the U.S. securities AAA rating being threatened with a downgrade, the credit agencies will watch carefully to ensure Congress takes action to steer the country in a financially solvent direction. A downgrade would result in higher interest rates, making it more expensive for consumers and the government to borrow money.
Bottom line: crisis averted-it’s business as usual for now, but this is not the last to be heard regarding U.S. deficit and debt levels. Some reports indicate that this may change the game in Congress from “spend, spend, spend” to “cut, cut, cut.”

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