Finding a home that you can see yourself in for the next five to twenty-five years is a great feeling. Don't let that feeling cloud your judgment and leave you with unexpected issues after the closing.

Here are a few things to consider before you buy:

1. Hire an expert to do your own home inspections and attend them if possible.
2. Evaluate possible repairs/immediate improvements. Ask the seller to repair them or include the cost into your bidding.
3. Purchase an evironmental report.
4. Know all of the vital systems that connect to the house (electrical, sewage, heating, air conditioning, garbage disposal and water.) Investigate the ins and outs of these systems.
5. Perform an energy audit. Confirm that your budget will match what your new home is going to cost on a monthly basis.
6. Examine potential neighborhoods with a 24 hour perspective. Are there any dogs howling late at night? Again be sure there are no regular surprises.
7. Do multiple practice commutes. One day is not enough time to judge the next 5+ years of driving to work.
8. Consider your furniture, electronics and appliances. Will they fit into the new home or will you need to purchase new home furnishings?
9. Know the local political landscape. Are there any issues you should know about? Make sure you understand how utilities, schools and public services are funded.
10. Research the local area to understand its economics, climate and variables that will be part of your long-term lifestyle.

If you're considering a move, or hear that any family, friends, neighbors or colleagues are, please feel free to contact a professional Century21 Agent.

Having a realistic estimate of what you can afford to spend can save you time and stress during your house search. The Federal Housing Administration offers some pretty solid advice on this that you should consider. It recommends your monthly housing costs-including the mortgage principal and interest, plus other related costs like taxes, insurance, and maintenance fees or common charges-account for the following percentages of your gross, or pretax, monthly income.

• No more than 29%, if you have debts your're paying off or other major monthly expenses, like childcare or school tuition.
• Less than 41%, if you don't have other debt or monthly commitments (although some more conservative lenders recommend a maximum of 36%)

To figure out 29% of your gross monthly income, multiply your annual gross salary by 0.29, then divide by 12. If you make $50,000 annually before taxes, or about $4,167 per month, you'd want your total housing costs to come in around $1200.00 a month. That's about $500.00 less per month than the 41% ceiling.

As you calculate how much you're comfortable spending, bear in mind future expenses-if you have a baby, for example, or return to school-while you're still paying off your mortgage. It's nice to have a cushion.

ALSO; Add this to the bill:

Expect to pay some additional housing-related costs each month. Here's how it breaks down:

• Private Mortgage Insurance/FHA Insurance. If you think you can only afford to put less than 20% down, you will likely have to get private mortgage insurance or PMI. Most lenders require this to protect them shoud you default on the loan, although you can usually cancel it once you've paid off 20% of the loan. PMI costs vary form one mortgage insurance firm to another depending on the amount of your loan, down payment, and your credit score. But expect to pay at least $50 to $100 a month extra.
• Homeowner's Insurance. Count on paying at least $800 a year, or $67 a month for this. The average homeowners' premium was $804 in 2006, the most recent year available, according to the insurance information institute.
• Property Taxes. You'll also be responsible for paying state and local taxes on your property, which can vary, so check the average for your area. The National Association of Home Builders has calculated average peoperty tax rates for every county in the nation, using data from the 2000 census.

Some new developments may have special tax abatements, which allow you to pay low annual taxes-from 5 to as many as 20 years. When you start looking for a home be sure to ask a realtor if there are any developments in the area that have tax abatements

• Maintenance or Common Charges. If you join a homeowners association you may also be responsible for monthly maintenance or "common charges". (These can also vary so be sure to ask about them when you begin looking at places to buy)

Take a tax break! But wait it's not all bad news... As a homeowner, you can deduct some of these additional expenses. At the end of each year, your lender will send you a form listing how much you paid in mortgage interest and "points," for that year. You can generally deduct all of that. You should also be able to deduct the property taxes you pay to local and state governments. The IRS offers more information on tax deductions for homeowners.

The following information describes simple steps you can take to obtain a building permit and how permits can work for you. You'll be surprised at how easy the whole process is.

The truth is, building permits are very beneficial to you and your community. By working with expert code officials, you will benefit from their knowledge of building codes to ensure your construction project is built right, will be safe, and will last.

WHAT'S A BUILDING PERMIT? A building permit gives you legal permission to start construction of a building project in accordance with approved drawings and specificaitons.

WHEN DO YOU NEED A PERMIT? The best way to find out if you need a pemit is to call your local building department. Discuss your plans with the code official before beginning construction to determine whether you need a permit. Even if a permit is not needed, the code official will answer construction questions and may provide valuable advice.

PERMITS ARE USUALLY REQUIRED FOR THE FOLLOWING:

• New buildings
• Additions (bedrooms, bathrooms, family rooms, etc.)
• Residential work (decks, garages, fences, fireplaces, pools, water heaters, etc.)
• Renovations (garages conversions, basement furnishings, kitchen expansions, reroofing, etc.)
• Electrical systems
• Plumbing systems
• HVAC (heating, ventilating, and air-conditioning systems)

Your home or business is an investment. If your construction project does not comply with the codes adopted by your community, the value of your investment could be reduced. Property insurers may not cover work done without permits and inspections. If you decide to sell a home or building that has had modifications without a permit, you may be required to tear down the addition, leave it unoccupied, or make costly repairs.

A property owner who can show that code requirements were strictly and consistently met-as demonstrated by a code official's carefully maintained records-has a strong ally if something happens to trigger a potentially destructive lawsuit.

Your permit also allows the code official to protect the public by reducing the potential hazards of unsafe construction and ensuring public health, safety, and welfare. By following code guidelines, the completed project will meet minimum standards of safety and will be liss likely to cause injuty to you, your family, your friends, or future owners.

TALK TO YOUR LOCAL CODE OFFICIAL

Code officials want your project to be a success and will help you avoid any potential problems that could cost you time and money. You will be asked some basic questions (What are you planning to do and where) advised of any requirements and if necessary, referred to other departments for their approval. The code official will provide you with the resources and information needed for compliance with the applicable building codes. You will then receive an application for a building permit.

SUBMIT APPLICATION

At this stage you will document the "Who, What, When, Where and How" of the job, along with any sketches or plans of the proposed work.

REVIEW PROCESS

In a brief amount of time, the code official will review your plans and determine if your project is in compliance with local requirements. If your plans meet these requirements, a permit is issued. If not, the code official may suggest solutions to help correct the problem.

RECEIVE PERMIT

Once you receive the permit, you have legal permission to start construction. A fee, based on the size of the job, is collected to cover the cost of the application, the review, and the inspection process. An experienced code officail is abailable to you should you have any qyestions concerning your project. You should consider you code official as any ally who will help you make your project a success. Separate permits are typically required for electrical, plumbing and heating or air-conditioning work.

JOB-SITE VISITS

On site inspections will be required to make certain the work conforms to the permit, local codes and plans. Again, you will have access to the expertise of the code official to help you with questions or concerns regarding the project and to minimize potentially costly mistakes.

FINAL APPROVAL

The code official will provide documentation when the construction is complete and code compliance is determined. You will then have the personal satisfaction of a job done right. Enjoy your new surroundings with the peace of mind and the knowledge that they meet the safety standards in your community.

It takes everyone in a community to keep our homes, schools, offices, stores and other buildings safe for public use. Your safe construction practices help protect you, your family, your friends and your investment. Be sure  to get your local code official involved with your project, because the building department is an important ally, from start to finish.

This is not the same as getting pre-approved for a loan. Your're not making a commitment to a specific lender, nor is the lender committed to loaning you this amount. The pre-qualification letter is simply an estimate of how much money you're likely to be approved to borrow, based on the financial information you've provided. It's a pretty informal process.

WHERE. You can get pre-qualified for a mortgage at your bank, if it offers mortgages, or at another financial institution or mortgage lender's office - either by phone or in person.

HOW. A loan officer will typically ask you about your income, your assets (such as how much you have in the bank and investments), your debt, and the down payment you plan to make in order to figure out how much you qualify to borrow. The process usually takes a few minutes and shouldn't cost you anything.

WHY. It can save you a lot of stress by giving you a realistic estimate of the maximum amount you'll likely be able to borrow. You can use a Mortgage Calculator to figure out about how much your monthly mortgage payments would be, given the amount you've pre-qualified for.

Before you decide if you're ready to buy and how much you can afford, remember this checklist:

• 10 to 20% down payment
• Closing costs equal to 3 to 5% of the pruchase price
• A 6 to 9 month emergency savings fund to cover basic expenses if you (or your spouse) lose a job
• Other houseing expenses beyond the mortgage (including Private Mortgage Insurance, homeowner's insurance, taxes and common or maintenance charges)
• Spend no more than 41% of your monthly pre-tax income on all your housing costs and any debt or other big payments (like childcare)
• Get your credit report and score; have any errors fixed; pay down your debts; and give yourself a few months to see the results in your score
• Gather your financial info and find out how much you're pre-qualified to borrow

According to a survey performed by mortgage-insurance tital Freddie Mac, mortgage rates on 30-year mortgages averaged 4.84% last week. Rates were quoted late Friday at 4.86% the lowest since December 2009. Rates on 15-year mortgages averaged 4.24% the lowest since Freddie Mac began it survey in 1991.

Economists largely attribute the decline in mortgage rates to the European debt crisis and new concerns about the global economy, which unleashed a massive wave of cash into US Bonds for investors around the world.

Falling mortgage rates can give a powerful boost to the housing market. A general rule of thumb holds that every one percentage point decline in mortgage rates is the equivalent of roughly a 10% reduction in the home price for the buyer. So, if the current rates hold, say economists, that could help stabilize prices and allow current homeowners to sell existing homes without substantial price cuts.

It isn't clear how much home-buying the lower rates will spur. Demand had fallen in recent weeks after buyers raced to close sales ahead of the last month's expiration of an $8,000 federal tax credit for home purchases.

Furthermore, lower rates could widen the pool of people who qualify for a mortgage, while others may find that they qualify for a slightly larger loan.

For more information call our Century21 office today.

For more information on the decline of mortgage rates visit the Wall Street Journal at WWW.WSJ.com.

- Defining Search Parameters

- How Long It Should Take

- Home Buyer Benefits

- The "Red Shoes" Experience

- Making Your Selection

Everything you need to know as a First Time Home Buyer, including Frequently asked questions and answers.

visit: www.homebuying.about.com

Clean House, Cut Clutter, Geg Organized at Home!

     Cut the chaos and enjoy a clean, serene home! Get organized and find efficient home organization with ideas, articles and organizing tips.

- DOLLAR STORE CLOSETS

- FAMILY MAILBOXES

- NEW USES FOR ZIPPER FOOD STORAGE BAGS

- HOME MANAGEMENT

- PLUS MUCH MORE

visit: www.organizedhome.com

What to expect at closing.  Please click on this link to see what Trulia posted about closing on your new home  http://www.trulia.com/guide/home_buying/close_the_purchase/what_to_expect_at_closing/?

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When Congress extended and expanded the federal homebuyer tax credit in November, it created an exciting opportunity for more consumers than the original version, adding repeat buyers to those that could benefit.

Much has been written about the tax credit created for first-time homebuyers. But many people may not realize that there is now an attractive opportunity for existing homeowners as well.

Now, repeat homebuyers who purchase a principal residence can receive a credit of up to $6,500 as long as they have been living in their current home for five consecutive years out of the past eight years preceding the purchase.

Income requirements have been relaxed as well. Under the new rules, the credits are available to single buyers with incomes up to $125,000 or married couples earning up to $225,000. Partial credits may be available to homebuyers who earn more.

“This is great news for all homebuyers,” says Rick Davidson, president and CEO of Century 21 Real Estate LLC. “The expanded tax credit, combined with low interest rates, outstanding values and a great selection of homes is creating what may be a once-in-a-lifetime opportunity to get the home of your dreams at a price you can afford.”

But buyers need to act quickly to capitalize on the tax credit.

Congress extended the credit until April 30, 2010, giving buyers who have signed a purchase contract by that date until June 30 to close on their home.

This may be an ideal way to maintain home ownership for consumers who have considered down-sizing--or moving up to match their current circumstances.

For more information about the tax credits, or to learn about available properties in your area, call our CENTURY 21 Office today

We here at Century 21 Jensen Realty are so excited to have this new webiste!  We would love to have your comments to let us know what you think, what you would like to see changed and what you think we should add!