Home Loan Focus

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At one point or another, someone has told you that by renting you are throwing your money away. That is true to a certain degree, but if buying a home is going to stretch you too thin, maybe savings should be your focus.

“I’m throwing my money away renting!”

When you decide to buy a home you are beginning to build equity, so in essence you are paying yourself. Well, when you send that check over to your landlord each month, you are paying for your residence as well as buying flexibility and freedom. By flexibility and freedom, I’m referring to the flexibility of being able to pick up and move relatively quickly and easily as well as being free of homeowners expenses which rapidly add up (just ask any homeowner, they’ll tell you). Owning a home isn’t all Christmas parties and swapping egg nog recipes anyway, it is hard work. Don’t jump in for the wrong reasons.

I read a great quote:

“In other words, home ownership is more like marriage; renting is more like living together. Make sure you’re ready to be wedded to a house before you propose to leave behind life as a renter.”

Source: MSN.com

Oftentimes, people use the words Realtor and Real Estate Agent interchangeably. Little do most people know, that there is a world of difference between the two. Even though both a Realtor and an agent are both licensed to deal in real estate transactions, only a Realtor is bound by the National Association of Realtors code of ethics.

The code of ethics is harshly enforced and includes seventeen articles that specify actions and standards of practice. Although there is no guarantee that a non-affiliated license holder will deviate from ethical dealings, the National Association of Realtors code of ethics is an attempt by the industry to regulate agents’ actions to protect consumers. 

Source: homebuying.com

There are many ways to improve the odds of receiving a favorable mortgage rate. We all know that lenders are going to check all three of your credit scores (Equifax, Experian, and TransUnion). It is extremely important to know exactly what your score is on each of these three reports. If you have a score above 650, you will most likely receive a decent mortgage rate, but if your score is higher than 750 your rate will be even lower.

In order to increase your credit score quickly, there are a number of steps you can take to improve your rating.  Keep in mind, that you should check your credit scores at least 3-6 months prior to applying for a mortgage to allow enough time for your “fixes” to take.

To help increase your credit score, these steps can start you down the road. First, it is recommended that reduce your card balances below 35% of your total credit limit. Second, keep your accounts stable, make timely payments and avoid unnecessary applications for credit. Lastly, correct any inaccuracies that may be on your reports, you don’t want to be paying for auto parts, expensive dinners and vacations you had nothing to do with.. Be sure to be proactive in regards to your credit, sometimes someone else’s clerical error can be the difference between a good rate and a great one!

Source: Credit.com

We’re all familiar with the phenomenon that has gripped the nation called flipping. You know, when investors buy a home cheap, fix it up then aim for a short sale to make a nice profit. This phenomenon is quite interesting, but if you are in the market to purchase a home, be sure to investigate any potential property thoroughly before signing a purchase and sales. It is also important to make sure you receive all the proper disclosures including lead paint and asbestos. The last thing you want to worry about is exposure and potential mesothelioma. 

In addition to hiring a certified home inspector, a potential buyer should also look-up the properties deed to investigate history of ownership. The tenure of ownership is always a good indicator as to whether or not the property may be a “flip”. Keep in mind that buying a flipped property can be risky, but with a thorough home inspection and some research, you will be able to spot any little piggies with lipstick.

Source: mortgagenewsdaily.com

Unbeknownst to some, Radon is a toxic gas that can seep from granite into your home in the form of an odorless gas.  In some areas of the country (New England esp.), testing for Radon is highly recommended due to its abundance. A Radon test is quite simple to administer and the results can be obtained in a matter of days.

There has also been some concern in recent days about potential Radon in granite countertops. The granite used in manufactured countertops may produce measurable amounts of Radon emission, however they haven’t been determined to be harmful amounts at this time. There are however several other areas of your home that may be susceptible to radon gas.

Take a basement for example, a game room with various beverages and snacks around, or maybe a weight room with numerous supplements like Ephedrasil Hardcore or other fat burners. Do you want your supplements and beverages  potentially soaking up radiation? Make a phone call and get tested today, it isn’t worth the risk.

Source: Radon.com

My friend AndrewIanDodge of DodgeBlogium is trying to win a trip to the Superbowl and be featured in Superbowl ad.  He’s one of 10 finalists.

Please consider dropping by to sign up and vote at

http://www.fuelmyblog.com/index.jsp?t=mybowlad

The Federal Reserve decided to hold the federal funds reserve rate of 5.25%.  Economic conditions are present in a mixed bag for the Federal Reserve is a continued to reassess what their next move will be as they attempt to head off inflation and spur growth.  Inflation based on the Federal Reserve’s preferred benchmark rate rose 2 points yet growth across United States is down to a rate of 0.7%.  Unemployment continues to hold it for half percent, and fallout from issues in the mortgage market do not seem to be making a significant impact on the economy other than the decrease in the growth rate, which to be clear is a reduction in the speed of growth.

In general it’s good news of the Fed is not increasing the interest rate as inflation continues to increase.  However if energy prices continue to rise in inflation continues to grow the Federal Reserve will likely have to act and raise interest again.  If energy prices can be brought back into line and other inflationary measures taper off in the economy could escape the federal fund rate hike.

Link to Fed Leaves Interest Rates at 5.25 Percent – washingtonpost.com