Small-business owners may have a smaller income because they are typically knowledgeable [...]]]> Getting a mortgage these days can be tough and it is even tougher for small-business owners. Potential self-employed borrowers usually have variability in their income streams. Today, banks are requiring more financial documentation from all buyers, and self-employed borrowers tend to face more scrutiny.

Small-business owners may have a smaller income because they are typically knowledgeable about tax deductions and credits. This often reduces the amount of taxable income they have. Reducing the amount of taxable income on your tax returns means to the lender there is less income to qualify for a loan.

There are ways self-employed borrowers can increase their chances of getting a home loan, however. Here are a few tips:

What is the lenders history?

Find out if the lender has a history of working with self-employed borrowers. Self-employed borrowers should focus more on finding a lender that will understand their situation rather than shop the loan rate. There are individual loan officers who will be able to think out of the box or come up with solutions. The lender you choose is key.

Consider portfolio lenders.

Portfolio lenders have more flexibility in originating loans because they don’t have to sell the loan to Freddie Mac or Fannie Mae. Portfolio lenders hold their own loans. That makes a big difference in their ability to loan. Another option may to consider credit unions. Many credit unions also keep a good portion of loans on their books.

Boost your income.

Show you make as much money as possible on your tax return. You might need to amend your tax returns. Some lenders will look at a loan application again if they have sent in amended returns to the government. Sometimes by rethinking deductions and credits on income taxes, a borrower can increase his qualifying income. Of course, with this strategy, the borrower would also face a new tax bill.

1. Do not get emotional

That is easier said than done -this is your home after all. The [...]]]> Seems these days everyone is telling you what to DO, but where is the DO NOT list when selling your home? Here are three easy tips on what not to do in the sale of your home.

1. Do not get emotional

That is easier said than done -this is your home after all. The more you think of the sale as a business transaction the better and thinking with your heart is not always the best route to take when negotiating a deal.

Buyers will not place the same value on your home as you do. You will have to put your emotional attachment aside. A house is worth what a buyer is willing to pay. Much to the seller’s chagrin, this means that buyers set the market. In most cases, there is a going fee for homes. The price is typically is determined by location, house style, number of bedrooms, bathrooms, lot size, and condition to name a few. What is not taken into consideration are the memories and the love you put into taking care of your home.

2. Don’t go it alone

Real estate professionals are skilled to showcase home selling qualities. They are also skilled negotiators who know how to get you the best deal. According to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers, homeowners that sold on their own property typically received $59,000 less for their home than an agent-assisted home sale.

It can be very difficult for a seller to show and close the deal on their own home. It is usually very awkward for buyers viewing a home while homeowners are still there. It may discourage them from commenting, criticizing things, or even looking as thoroughly as they normally would. A buyer is leery about trusting and working directly with the seller. Negotiations typically break down without the real estate professional’s expertise.

3. Don’t choose the agent who gives you the highest price

Many sellers get caught up in what an agent will say the house is worth. Refer back to number one on this list. The house is worth what the market will bear. Often times an agent may entice you with a higher list price to get the listing, only to drive down the ultimate selling price of your home because it has sat on the market for too many days. Choose an agent based on their reputation, marketing strategy, and one you can trust. You may want to even throw in a gut feeling on the choice. Remember you will have to work with this person so a good relationship is important.

There are many benefits of owning a home.  Due to negative press about the real estate market, buyers are skeptical of purchasing with the uncertainty surrounding the housing market. [...]]]> If you think the dream of homeownership is lost; think again! The American dream of homeownership is quickly becoming more and more feasible in  2012.

There are many benefits of owning a home.  Due to negative press about the real estate market, buyers are skeptical of purchasing with the uncertainty surrounding the housing market. Here are 12 reasons to buy a home in 2012.

1. Rents are at an All Time High- Due to the influx of foreclosures and fewer people making a decision to buy a home, the demand for rentals the past few years has increased. All prices are based on supply and demand and that is pushing up rental prices.

2. The Worst is Over-From the market peak in 2006, the S&P/Case-Shiller index of 20 housing markets is down 32 percent. What does that mean? The housing market could be at a turning point. Signs are showing we are moving from steeply falling home prices to an extended period of stabilizing prices.  You can’t predict the market and you won’t know when low prices are over until they start to go up. Stability is your first clue.

3. Historically Low Mortgage Rates-Long-term mortgage rates fell to new lows in January. According to FreddieMac, a 30-year fixed-rate mortgage averaged 3.89 percent in the week ending Jan. 12, falling from 3.91 percent last week and marking the lowest since Freddie Mac began keeping track. A 15-year fix fell to a record low 3.16 percent.

4. Mortgage Rates Won’t Stay Low-Just like you can’t predict when housing prices will rise; you also cannot predict the mortgage market. It is however unlikely that mortgage rates will remain low for long. This is especially true if demand starts rising and prices stabilize.

5.  Less competition-The slow sales pace is proof that there are fewer buyers out there. That is good news for a serious buyer; they will be less likely to end up in a bidding war. It doesn’t mean that homes that are priced aggressively to sell will not end up with lots of offers. Wait too long to jump in the buyer pool and there may be more competition. The market is showing signals of recovery, meaning demand will pick up. Being a little ahead of the curve gives buyers more elbow room.

6.  Appreciation-Odds are that buying a home at the current rates can almost ensure your home’s appreciation in the future.  With the double advantage of low prices and low mortgage rates the perfect storm for home appreciation is brewing.

7. Build Equity-Your home can actually work as a wealth building or even savings plan for you. Some homeowners are now adding money to their monthly payment to decrease the principal balance of their loans at a much faster pace.  This is called equity building. Because home equity is the largest single source of household wealth for most Americans it is a smart move to ensure financial stability.

8. Tax Deductions-If you are looking to save more money on your taxes than buying might just be the answer. Real estate property taxes for a vacation home and first home are fully deductible.  The IRS Publication 530 provides detailed tax information for first-time buyers that may answer many questions about what deductions homeowners are eligible for.

9. Homes are More Affordable- According to Kiplinger, the percent of family income consumed by a mortgage payment is at record lows. The average family pays only 12% of their monthly income to pay for today’s mortgage. Affordability has not been that low since 1971. Additionally, the Fed’s financial obligation ratio for mortgage holders have fallen to levels not seen since 2003.

10. Moving Up is More Affordable-If you are thinking about buying a bigger or more expensive home this is a great opportunity to save money. Homes in a lower prices range have not lost as much as higher-end homes. For example, if your home in 2006 was worth $125,000 it may now be worth $100,000. The home you may be looking to buy in 2006 was priced at $350,000 but now is under $300,000. You have made a gain of $25,000 in your upward move.

11. Buy Low, Sell High-The uncertainty surrounding the housing market will wane. When the housing market rebounds prices will go up.  Owning a home may eventually be more than just a pride issue, it could also become a profit through a home sale.

12. Pride of Ownership-There are more benefits than just financial gain in homeownership. Some of those benefits may be painting the walls the color of your choice, or landscaping the yard, or having a pet. No matter the reason; homeownership will give you pride.

1. Shop alone — and after eating

One simple recipe for avoiding impulse buying: [...]]]> Scouting around in the family budget for quick savings? You may not be able to reduce your mortgage or rent overnight, but you can reduce your food bills quickly and easily with these cost-busting ideas from Babycenter.com.

1. Shop alone — and after eating

One simple recipe for avoiding impulse buying: Do your shopping after a light snack or meal and leave the kids at home.

If you aren’t hungry, yummy-looking foods will be easier to pass up. And if your children aren’t with you, they won’t be clamoring for all the goodies at eye level.

With your stomach full and your hands free, you’ll find yourself with both the time and energy to do real comparison shopping. So have your partner or another adult stay with the kids while you head to the store, list in hand, ready to scan the aisles for what you need as well as special deals.

2. Understand how stores work
A basic understanding of merchandising can help you avoid overspending. These simple habits will go a long way toward keeping your budget in check:

Walk briskly toward what you came to buy and avoid distractions along the way. For example, have you ever noticed that the diapers and milk are often at the back of the store? You’re forced to walk past a lot of temptation to get to the items you need most often.

Products are displayed at the ends of the aisles to catch your eye. Think carefully about whether what you see there is really necessary – or a bargain – before you toss it in the cart. Many “featured” items are not bargains at all.

As you peruse the aisles, bend over to check the prices on the bottom shelves and compare them with the cost of the items at eye level.

Avoid buying the items displayed by the register. The magazines at the checkout stand cost much more per issue than they would if you had a subscription, and cookies in little packages cost more than a from a box. Almost everything near the register is there to inspire you to buy on impulse, not to save you money.

Tip: Make fewer trips to the store and you’ll find yourself with fewer chances to pick up a few extras you don’t really need.

3. Buy house brands or generics
The less costly house brands are often so similar to national brands that you wouldn’t be able to tell them apart without the packaging. Read labels to compare nutritional value and you’ll quickly see how little difference (if any) there is – other than price.

Store brands cost an average of 27 percent less than name brands, according to Consumer Reports, which looked at 29 different food categories. Testers said store brands tasted the same or better in all but six categories.

Meat and dairy products all have to meet government standards, so store brands should be just as wholesome and nutritious as national brands.

Tip: You can donate to your child’s school as you shop. This costs you nothing – just sign up for the school’s scrip or electronic scrip fundraising program. Participating stores then donate part of the value of your purchase to the school every time you shop. To find out more, ask at your child’s school.

4. Check the unit price
Don’t be fooled by packaging. As you cruise down the aisles comparing products, take note of the unit price that appears on the store shelf just below or above the product. The unit price tells you what the product costs per ounce or some other consistent unit of measurement.

Whether the package is tall, short, or squat, you’ll know in an instant whether it costs more or less than other sizes of the same food. Compare per-unit prices and buy the item that offers more for less instead of the one that looks like more for less.

5. Use savings cards and coupons
Check your supermarket’s weekly flyer or ads for coupons on items you buy regularly, but also take advantage of your store’s savings card.

Many supermarkets offer savings-card programs that entitle you to special bargains or cash-back dividends on your purchases. Just present the savings card (or your ID number) at checkout, and depending on how your store’s program is structured, you’ll get savings on the spot or a dividend at the end of the year.

Keep your clipped coupons organized, perhaps separated according to grocery aisle or section. Whether you choose to hold them in envelopes, in a zip-top bag, with paper clips, or in a specially designed accordion file, store them in your purse or car so they’re with you whenever you shop. It’s annoying to come home from food shopping and find the coupon you wanted on the counter – on your store’s triple coupon day.

Tip: If a sale item doesn’t appear on the shelves, ask for a rain check so you can get it for the reduced price when it’s back in stock.

6. Buy in bulk
Buying in bulk is a no-brainer if you’re feeding a big family or the whole preschool. But you can still benefit from these discounts if yours is a smaller family or you have limited storage space. Here are some ideas for making the most of oversize buys:

As always, arrive at your bulk-shopping store with a list. This will help you avoid buying a TV, watch, barbecue, or package of 200 gel pens just because it’s such a good deal.

Buy mostly nonperishable items that you know for sure you’ll use eventually – for example, paper products, cleaning supplies, baby wipes, juice boxes, and canned goods.

If you do purchase perishables, separate large packages into smaller ones as soon as you get home. Divide chicken and steaks, for example, into daily portions and freeze for later use.

Split the purchases and the bill with another family. Again, a list is a must – agree ahead of time on what you’ll buy. If you trade off trips to the store, both families also save time.

7. Buy from the source
Get produce from a local farmer’s market and you may be able to avoid the store markup on fresh vegetables and fruit, especially if you buy organic. Keep an eye out at the farmer’s market for growers selling blemished produce at bargain prices – it tastes wonderful but doesn’t meet grocery store standards for beauty.

Some farmer’s markets carry locally produced meat and dairy products, locally caught fish, and a variety of prepared sauces, preserves, and condiments made by local food artisans that would cost much more in stores. Of course, these are expensive no matter where you buy them. But if they’re must-haves for your family, a farmer’s market may be your best bet.

First you will want to determine what you can afford. To do that you will want to get preapproved. That means a [...]]]> Buying a home can be a scary and confusing process. It is easy to get confused by all of the homes, locations, and what is truly important to you when buying a home.

First you will want to determine what you can afford. To do that you will want to get preapproved. That means a bank; mortgage broker or credit union will determine how much of loan you qualify for based on your income, debt and credit score. They will give a pre-approval letter stating how much you can afford.

Now it is time to pick a real estate professional to help you find the right home, negotiate on your behalf and help you navigate through the process. It is important that you choose an agent that is reputable; you have interviewed to find a good fit and is willing to listen to your needs.

Many buyers often confuse their needs with their wants. Making a list of what you actually need and what you want or your wish list is very helpful when looking for a home. Buying a home is typically a process of elimination. Many home buyers often dismiss homes that perfectly fit their needs in search for one that has their wants. This doesn’t mean you can have your wish list, but home buying is more often defined by your budget than wish lists.

To help with this process it is typically helpful to make a list of needs and wants.

Each individual will have a different list of needs and wants. Your own list will help you evaluate homes as you go through the process. Sharing this list with your real estate professional will also help narrow down your search. The goal is to find a house that includes all of your needs and meets as many of your wants as is practical in your budget.

Here are five things you need to know before taking the leap.

1. Prices are at [...]]]> If you have been dreaming of owning a vacation home now may be the time to buy. Home prices and mortgage rates continue to fall and there are some great deals for buyers looking for a second home.

Here are five things you need to know before taking the leap.

1. Prices are at all-time lows
In many second-home hot spots, prices are still close to their five-year lows. When the real-estate bubble burst, some of the hardest-hit markets were vacation destinations. Many vacation home areas experienced overgrowth and may now be suffering from foreclosures.

2. Think ROI
Consider the possible return on your investment. Whether or not you decide to rent the home out, you will want to consider buying a place that has good rent potential. That’s because a home’s rent ability can affect its resale value. Before you bid on a house, make sure the homeowners association or township allows short-term rentals.

3. Don’t count on rental income
If you are planning on counting on rental income to cover the costs beware. According to HomeAway.com, a typical second home property rents out just 17 weeks a year. Make sure to account for the weeks the home won’t rent. Plus, you’ll need to pay for cleaning, maintenance, insurance, and maybe management fees. Make sure to plan on the maintenance costs of the property being at least 15% of the income.

4. Your mortgage rate depends on how you use the home
How you use the home depends on the mortgage rate you will receive. If you plan to use the property primarily as a second home and you’ll pay about the same mortgage rate as you would on a primary residence. If your plans are to use the home for rental income and need that income to qualify for the loan, you’ll need to have as much as 25% for the down payment and pay up to one percentage point more in interest.

5. Take advantage of tax benefits
Talk to your tax guy before you buy. If you rent the home out for two weeks or less you won’t have to report a cent of income to the IRS. The good news here, you can still deduct property taxes and mortgage interest. On the flipside, if you stay there for less than two weeks or 10% of rental days, you can deduct operating costs in addition to interest and property tax.

But where should you buy? According to CNBC here are the top places to buy a second home. If you are thinking about buying a second home I can help you find a professional agent in that area.