How much money do I need to buy my first home?

This is probably the number one question a first-time home buyer will ask... or will think about asking. Buyers (who are probably renting) spend thousands of dollars a year on rent and think they need thousands more to buy. It's just not true (in most cases).

OK... so what's the answer? How much money do you need to buy your first home? Well... there's Earnest Money, Option fees, Inspection Fees, Appraisal Fees, Down Payment, Closing Costs and Pre-Paid Items. I know it sounds overwhelming, but don't worry... you may not have to pay all of them! Believe it or not, a Seller can cover some (or most) of these expenses for you!

When you hear... "No Down Payment," it is relieving you of ONE of the required expenses listed above. Down Payments may equal 3.5% to 20% (or more) of the Purchase Price. For example, on a $100,000 home, a 3.5% Down Payment would be $3,500.00. If you have a "Zero Down Payment" mortgage, the $3,500.00 expense is either waved or rolled into your mortgage balance. There are a variety of Mortgage Programs available that may provide this type of Down Payment Assistance.

As for the rest of the fees and expenses, they are (for the most part) negotiable.

• Earnest Money or "Good Faith" Money ($500 is customary) can be negotiated with a Seller.


• Your Closing Costs and Pre-Paid Items may be negotiated and even paid by the Seller at closing. (Pre-pays are your taxes & insurance paid in advance. Closing costs are your lender fees, title fees, attorney fees, etc...). Equals approx. 6% of the sales price.


• Your Appraisal Fee (around $350) is required by the Lender and usually paid upfront.


• The Option Fee ($25 and up) and your Property Inspection Fee ($275 +/-) are expenses that I strongly suggest to my Clients, but they are not required.


• Termite Inspection ($65 +/-) a Lender requirement for FHA & VA loans.

Every REALTOR has a guideline for their Buyers. I try to prepare my Buyer/Clients with over- estimated figures so there are no surprises.


My Financial Guideline for First Time Home Buyers: Fees paid when your offer is accepted

• Earnest Money: $500


• Option Fee: $25


• Property Inspection: $275 (+/-)


• Appraisal: $350 (+/-)


• Termite Inspection: $65 (+/-)

Total Upfront Cost: $1215.00 (estimate)

Fees Paid at Closing: Closing Costs and Pre-Pays due at closing will depend on the final purchase price, your property taxes, your homeowner insurance, and the amount of the Seller's contribution (if any). Your lender will calculate this for you.

For Other FREE Real Estate Reports and Advice (for Texas Home Buyers) visit me online at http://www.ownapieceoftexas.com/ or http://coachingtexasbuyers.com

Thanks for visiting!

Val J Aranda, Your Texas REALTOR

"Coaching First Time Texas Home Buyers and Sellers"

WANNA SELL? Now is the perfect time! Buyers will rush after the New Year to beat the Tax Credit deadline
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NEW Tax Credit Rules - $8000 for Qualified "First-Time" Home Buyers

Not only has the Tax Credit been extended for first-time home buyers... it has also been expanded to benefit current homeowners looking to buy again! Here are some things you need to know for First Time Home Buyers...

FIRST-TIME HOME BUYERS
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1. Who's considered a first-time home buyer? "The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase" (Legal description provided by NAHB). So, YES... if you've owned a home, you may still qualify for the credit... as long as you haven't owned a home in the past 36 months!

2. What if I'm a first time home buyer, but my spouse has owned a home within the past 36 months? According to the new rules, neither person would benefit from the $8,000 First Time Home buyer tax credit. (However, you may qualify for the $6500 Tax Credit... See the Tax Credit Rules for Current Homeowners.)

3. I'm a single first-time home buyer, but my co-signer (ie: relative, friend) IS a homeowner... can I claim the tax credit? YES! "IRS Notice 2009-12 allows unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer." (NAHB)

4. Do I have to buy a New or Pre-Owned home to qualify? Either one! A qualified first time home buyer may either build a home or purchase a pre-owned home, as long as it's $800,000 or less. The home may be a single-family detached home, a townhome, a condominium, a manufactured home (also known as a mobile home) or a houseboat... as long as it is used as the Primary Place of Residence (NOT an investment/vacation home).

5. By when do I have to buy my house to qualify? The purchase (your closing date) must fall between January 1, 2009 and (on or before) April 30, 2010. "However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010." (NAHB)

6. How is the Tax Credit calculated? The Tax Credit is 10% of the purchase price (up to $8,000). For example... purchase a home for $60,000 and receive $6,000. In order to qualify for the full $8,000 you'll need to purchase a home for at least $80,000.

7. How is the Tax Credit paid or applied? If you file (or have filed) your taxes and do not owe the IRS, you may receive the Tax Credit in the form of a refund... a NICE check in your pocket! If you owe the IRS money, your credit will be applied to your unpaid balance first, then you will receive the difference (if applicable) in the form of a refund.

8. Is there an Income Limit in order to qualify for the Tax Credit? Yes... for purchases after November 6, 2009, the income limit (for a single taxpayer) is $125,000. The income limit for married taxpayers filing jointly is $225,000.

9. What do I need to do to claim the Tax Credit... is there a form I need to fill out? In order to claim the Tax Credit, a qualified first-time home buyer (after closing on the home) must fill out IRS Form 5405. No other applications are required and no pre-approval is necessary! Also... the new rule states that you MUST submit a copy of your HUD-1 Closing Settlement Statement along with the IRS Form 5405 as proof of the completed purchase.

If you have other general questions about the Tax Credit, Mortgage Qualifying or Home Finding, feel free to call my cell... 210.378.5987. If you have technical Tax/Tax Credit inquiries, contact your tax adviser. You may also visit the National Association of Home Builders (NAHB) web site for more FAQ's and answers.

http://www.federalhousingtaxcredit.com/faq1.php


This note provided by:

Val J Aranda, CHMS
"Your Certified Home Marketing Specialist"

Own a Piece of Texas: Real Estate Services & Consulting
P.O. Box 760121
San Antonio, TX 78245

Direct: 210.378.5987
E-Mail: Val@ownapieceoftexas.com
Online: www.OwnAPieceOfTexas.com

NEW Tax Credit Incentive: Up to $6500 for Repeat/Move-Up Home Buyers!

Yes... you read that correctly! The U.S. Government has approved a Tax Credit for existing homeowners looking to buy their next "home-sweet-home!" Here are a few things you should know...

REPEAT/MOVE-UP HOME BUYERS
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1. Who is considered a "Repeat/Move-Up" buyer? [For the Tax Credit] - A Repeat/Move-Up Home Buyer is a home owner who has owned and lived in their current primary place of residence for five consecutive years within the past eight years prior to the new purchase date.

2. "Purchase Date:" The day of closing and transfer of title.

3. How is the amount of the Tax Credit determined? The Tax Credit is 10% of the purchase price, up to $6500. (ie, $65,000 purchase price equals $6500 Tax Credit).

4. Is there an income limit to qualify for the Tax Credit? Yes, there is an income limit... $125,000 for a single tax payer and $225,000 for married tax payers filing jointly.

5. How do I claim the Tax Credit? Is there an application or separate qualifying? Filing for the Tax Credit is fairly easy. There are NO applications and NO other financial qualifying! Simply fill out IRS Form 5405 [ http://www.irs.gov/pub/irs-pdf/f5405.pdf ] and mail it in with a copy of your "HUD-1 Settlement Statement" as proof of purchase. To make sure there are no delays, I strongly recommend you seek advice and counsel from your local tax adviser.

6. If I buy a Condo, will I still qualify for the Tax Credit? YES!! You may purchase a single-family detached home, a townhome, a condominium, a manufactured homes (also known as a mobile home) or a houseboat. AS LONG AS the home is used as your primary place of residence (not an investment/vacation home).

If you have other general questions about the Tax Credit, Mortgage Qualifying or Home Finding, feel free to call my cell... 210.378.5987. If you have technical Tax/Tax Credit inquiries, contact your tax adviser. You may also visit the National Association of Home Builders (NAHB) web site for more FAQ's and answers.

http://www.federalhousingtaxcredit.com/faq1.php


This note provided by:

Val J Aranda, CHMS
"Your Certified Home Marketing Specialist"

Own a Piece of Texas: Real Estate Services & Consulting
P.O. Box 760121
San Antonio, TX 78245

Direct: 210.378.5987
E-Mail: Val@ownapieceoftexas.com
Online: www.OwnAPieceOfTexas.com

Open Houses... the Dazzle and Distraction

-- Tips for Home Buyers --

By: Val J Aranda, Your Texas Realtor

An open house is like a blind date. You're not sure what to expect, but you have your expectations. Your blind date has a wonderful sense of humor, is well dressed, perfectly groomed and has an alluring scent of something hypnotizing. The first impression is powerful... so you move on to dinner and cocktails. An open house is a similar experience. An open house, if done right, will strike a buyer's senses and may create a relationship for the next thirty years!

Tricks of the trade...

Curb Appeal: A well manicured lot may take the attention away from needed exterior house maintenance. How's the exterior paint? How's the condition of the siding, windows, roof, etc...? Is the beautiful rose bush that's leaning against the house the main highway for wood destroying insects like termites or carpenter ants? How about the patch of green grass near the water heater drain line? There hasn't been rain in the area for months, but the grass is green in this one spot? Hmmmm... is the water heater leaking? Is there water in the drain pan and passing through the drain line into the yard?

Entry: The first of the senses to be "woo'd" is the sense of smell. A well-prepared open house may have the lingering scent of baked apple pie or warm vanilla plug-ins. This will certainly strike a nerve, bring back memories and make the house feel like home. But is the scent of hot apple pie covering up the scent of pet or smoke odor?

Living Space: A home owner is coached to arrange furniture and to de-clutter to create the feeling of space. So, if a buyer has a bedroom that's 14' x 12' and it's too small... and the open house has a similar size room with just a twin bed and a small dresser... the "staged" room will appear larger... but it's not. If size is important, take measurements.

Storage Space: Closets and cabinets will be clean and organized to, again, give the appearance of space. If storage is a much needed feature, a buyer should open closet doors and cabinets and make sure there's really plenty of room. If a buyer notices linens and other knick-knacks in a "pantry," maybe that means there really isn't enough storage space.

Kitchen: A well decorated kitchen and a plate of cookies (with a note that reads, "Take One") may make a buyer forget that they REALLY hoped for a larger pantry or extra counter space. Also, a well designed kitchen may make the 1960's off-color counter top not look so bad... but will it match the new buyer's decor? Does the new light fixture and tile backsplash take the attention away from the out-dated and inoperable stove/range? It's easy to get distracted or to even settle for less than expected.

Flooring: Is there a strategically placed rug on beautiful wood flooring? Look under it... is it covering damaged wood? Cracked tiles on the floor? Is it a foundation issue or just poor workmanship?

Maintenance: While a fresh coat of paint offers a "new home" feeling, is it covering cracks or water stains? Does an area of the ceiling or wall appear to have new paint or texture in just one small area? If so, sometimes it's to cover an old or existing leak. If it's covering an old leak, is the sheet rock or dry wall molded on the other side?

The best advice I can give to a home buyer entering into an open house is.... "Don't forget what you're looking for, what you need and what you're willing to settle for!" It has been my experience that when a Buyer walks into a well staged home with a fresh coat of paint, the Buyer assumes the house has been taken care of and properly maintained. A Buyer who's interested in a home should always look at the Seller's Disclosure... and if there are questions after reviewing it... ask!



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Val J Aranda, LREA

"Coaching Texas Home Buyers and Sellers... even AFTER business hours!"

Own a Piece of Texas: Real Estate Services & Consulting
P.O. Box 760121
San Antonio, TX 78245-0121

On-Call: 210.378.5987 and Online: Val@ownapieceoftexas.com
www.OwnAPieceOfTexas.com

"Obstacles are things a person sees when he takes his eyes off his goal." E. Joseph Cossman

Don't live to work... Work to live... and live LARGE!

I worry so others don't worry. I spend days preparing, so others can relax. I spend endless moments thinking and studying, so I can become a better source of information. I truly love what I do and I love what I can do for others.

Personality tests will tell you that I should have been a Teacher, but my path has lead to Real Estate. After an awareness... after a brief reflection... I realized, my Clientele involves first-timers. First time home buyers, first time home sellers and fist time real estate investors... lo and behold... I AM teaching! Teaching buyers, teaching sellers, teaching investors, and teaching families everything I know about Real Estate so others can live their dream, too!

I encompass my life with my work. I flood my thoughts with endless possibilities. I work hard and I stay humble. I've noticed that I forget to practice what I preach. I forget to take a step back and enjoy the fruits of my labor. I don't want to live to work... I want to work to live... and to live LARGE!

House "Fix-Ups" Earning Larger Returns!

'Tis the Season for Home Staging! Springtime seems to bloom a desire to sell and to move into something newer.

For those of you who are considering selling a house now or in the future, here are some inexpensive fixes and/or upgrades to consider. Hope this helps! ~Val~

(Directly From Realtor.org)


8 Quick Fixes to Increase Value

With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, abr, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners’ Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas.

[http://rodomino.realtor.org/rmomag.nsf/0/a5ce36cf5dc897228625740a005c9bfe?OpenDocument#8%20quick%20fixes]



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Val J Aranda, LREA

"Coaching Texas Home Buyers and Sellers... even AFTER business hours!"

Own a Piece of Texas: Real Estate Services & Consulting
P.O. Box 760121
San Antonio, TX 78245-0121

On-Call: 210.378.5987 and Online: Val@ownapieceoftexas.com
www.OwnAPieceOfTexas.com

"Obstacles are things a person sees when he takes his eyes off his goal." E. Joseph Cossman

What Should My Credit Score Be To Buy My First Home?

Knowing your credit score nowadays is crucial. More and more consumers are getting familiar with their credit reports like never before! To answer the question... "What should my credit score be to buy my first home..." there are more than one answer.

Mortgage Lenders and some Mortgage Investors are currently offering mortgages with a Credit Score as low as 590. However... Mortgage companies like CitiMortgage are not taking credit scores under 620. Just a few months ago, Lenders were offering mortgages to home buyers with a credit score of 580! I wouldn't be surprised if other Mortgage Lenders follow suit and begin increasing their Credit Score minimums.

Mortgage Lenders are wanting to take less risk and want consumers with stronger credit scores. If you don't know your credit score, talk to a Mortgage Lender and ask if they'll offer you a free copy of your credit report with your credit score to help get you ready to buy a home. If you're not ready to buy a home, but would still like to see your credit rating, visit www.AnnualCreditReport.com. This is the web site that offers the REALLY FREE Credit Report. The only thing you pay for is the, less than $10 fee, for your Credit Score (if you want to see it... which I truly recommend you do).

As a reminder, there are THREE Credit Reporting Agencies... "TransUnion," "Experian," and "Equifax." Make sure to print a copy of all three since they typically report different credit activity. AnnualCreditReport.com allows you to print your credit reports free EVERY year!

If you do not have a Mortgage Lender to talk to, feel free to contact me directly. I'll be happy to refer you to a great Loan Officer who's been in the business for years! He'll not only issue a copy of your credit report, he'll review it with you and will create a game plan to help make you a STRONG Consumer.

Val J Aranda, LREA
Direct: 210.378.5987