If you are self-employed and want to buy a house...

It's great being self-employed but when it comes to buying a home, here is what you should keep in mind:

1. You will need a great credit score (that's a given for everyone) - 640 or more.

2. You will need good credit history. Typically, if you have a restaurant or convenience store, where sales may be in cash, then you are very likely spending that cash and not using a credit card. Car payments will be part of your credit  history, but you need to show at least 2 lines of credit. Get a secured credit card with a small limit and use it for your day-to-day purchases. Pay the balance off every month as soon as you get the bill. This will go a long way towards building your credit history.

3. You will need tax returns for 2 years. Here again, the tendency is to show a smaller income or take a lot of deductibles. If you don't have sufficient income, no loan officer is going to work with you.

Plus... all buyers (not just those that are self-employed) will need:

1. Some money as down payment. Depending on the type of loan, you may have to put down anywhere from 3.5% to 10% of the purchase price. Or even more.

2. Money for closing costs - these include lender fees, attorney and title fees, items to be paid in advance and reserves with the lender.

Here's a tip: when talking to a loan officer, make sure you know what your monthly payments are going to be - mortgage payment (principal + interest), taxes and insurance. And to this, add utility charges.

You must be comfortable with this figure. This will determine the price range you should stay in.

Finally... never ever be house poor. That is, don't let all your income go towards paying for the house. You need to have the basics - food, clothing and school, but you also need to have some fun.

If you want more information on buying a home, call me at 803-348-9922 or email me. 

Remarkable!

We have truly entered the 21st century in our liberal way of thinking. I watched 2 episodes of Jay Leno, albeit not in sequence.

The first had Ross Mathews as a guest. Ross had been an intern at the Tonight Show for years, then he graduated to coming on as a judge for the silly but hilarious Woulda, Shoulda, Coulda.

It was quite apparent that he was gay, but his sexual orientation had nothing to do with his talent - he was amusing and outrageous, qualities I find entertaining and stimulating.

This was his first visit as a guest. He talked openly about being gay and went so far as to mention his first (and last) sexual experience with a woman. A curious fact, he said, was that his mother’s name is Gaye!

The second episode was with Wanda Sykes as a guest. She is another comedian that I enjoy. She too talked openly about being a lesbian and about the babies that she and her 'wife' had adopted. She also spoke about her mastectomy and made jokes about her prosthetic breasts (if that’s the term).

These are truly remarkable phenomena - even 10 years ago, you would not have seen or heard people talk so frankly on network television.

I am so proud to live in a country where there is total freedom of speech, and you are not judged on color, creed, race, religion, national origin, familial status, disability or sexual orientation.

We have indeed come a long way!

Coincidence? Or...?

Douglas Coupland's (Canadian novelist and visual artist) theory says that every person experiences 1 coincidence a year and 2 déjà vus, whether you are a prince or a pauper.

I am happy to report that I’ve had my coincidence(?) for the year!

This morning, I received an e-newsletter (I subscribe to several) that talked of SPIN Selling. I glanced at it, but the article didn't grab me.

That afternoon, I talked to my son. Our conversation went thusly:

He: ‘I'm off to Richmond for a training program.’

Me: ‘In what?’
He: ‘Spin selling.’
Me: ‘What?’
He: ‘S-P-I-N selling.’
Me: ‘What's that about?’
He: ‘As soon as I finish my training, I'll tell you all about it.’

I googled Spin Selling. A whole fence of links (that should be a new collective noun) popped up. Very very interesting since it endorsed some of my own views on selling.

But... was that a coincidence? Or was it synchronicity, Herr Jung?

 

Search all available homes in Columbia and Lexington, SC at www.homesincolumbiasc.net.

What are the Gen Y-ers buying?

Today’s First-Time Home Buyers are Gen Y-ers – so… what are their characteristics?

Gen Y or Generation Y are those born between 1977~1982 and 1995~2001 making them 12 to 36 years of age today. They are the children of Baby Boomers, and in some cases, grandchildren.

Having spent their formative years or young adult lives in an unstable and unreliable economy, they may seem to be less caring and more self-centered. But various studies have shown that, in fact, it is the opposite.

Gen Y-ers have strong social and environmental values and concerns, and are in search of more caring and compassionate relationships, as is evident in the demand for same-sex marriages and environmental responsibility. They are techno-savvy and research everything from neighborhoods and schools to home loans and insurance.

Having been through a depression, they want value for their money.

How does this translate into home-buying? In 2 words: Going Green.

1.      They want energy efficiency - straight and simple. In appliances, insulation, windows, and roof.

2.      They strive for a more eco-conscious lifestyle in terms of water usage and use of up-cycled goods.

3.      They will shop around a lot more for a home.

 

Search for all available homes in Columbia and Lexington at www.homesincolumbiasc.net.

Why own a Home? Here are 7 Reasons.

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

Source: Realtor Magazine