2011 Home Buyers Resolutions

Happy New Year! It's time to get out your pen, paper, and nearest napkin to write down your resolutions for 2011. Some of the most popular resolutions include: losing weight, eating healthy, drinking less, managing debt, managing stress, saving money, and resolving to stop making resolutions.

If one of your goals for 2011 is to become a homebuyer, here are 5 tips that will help you actually achieve your New Year's resolution to buy a home this year.

1. Determine exactly what you will be able to afford before even starting the buying process, and set a budget.

Utilize a mortgage calculator to help you determine what you can afford. The amount you're preapproved for isn't necessarily the amount you can afford. When you've analyzed your income and savings, stick to your budget. Don't even look at homes that are out of your price range. Resolve to live within your means so you're not in jeopardy down the road of losing a home you couldn't afford in the first place.

2. Save for a significant down payment.

No-money down loans are hard to obtain and extremely risky. With an FHA loan, you'll need at least a 3.5% down payment. However, a 5%-10% down payment for a conventional mortgage is a smart goal to set.

3. Clean up your credit before applying for a mortgage.

Ideally, to get the best interest rate, you want your FICO credit score to be 700 or higher. If you haven't pulled your credit report in the last 6 months, plan on going to annualcreditreport.com to pull your free credit report. You will not receive a free credit score from this report, but you can purchase your credit score here. By reviewing your credit report prior to applying for a home loan, you can determine what shape your credit is in, start working to improve your score, and dispute any errors that may be erroneously listed on your credit report.

4. Shop around for the best home loan.

Make sure you talk to at least three or four lenders before you sign your application. Try to include a "big box" lender, a small local lender, a credit union, and a mortgage broker. Use the information you collect from each lender to negotiate the best loan for you.

5. Hire a professional real estate agent.

As a first-time homebuyer, the best resolution you can make when deciding to buy a home is to consult a trusted, professional real estate agent to assist you with the process. Professional agents have access to properties in your desired area, market comparisons for homes available for sale, and the expertise to draw up an offer to present to a home seller. Find an agent that you connect with and trust to have your best interest in mind.

If you're currently renting but want to become a homeowner by the end of 2011, following these tips will help you succeed in achieving your New Year's resolution to buy a home.

Troy Batson ~ Broker
Duke Warner Realty
1033 NW Newport Ave
Bend, Oregon 97701
541.678.3725 or 541.382.8262
troybatson@dukewarner.com
troybatson.com

NAR's Positive Outlook for 2011

The National Association of Realtors (NAR) is optimistic about home sales in 2011. Pending homes sales in November increased 3.5 percent, which indicates a gradual recovery for this upcoming year.

NAR chief economist Laurence Yun said, "All the indicator trends are pointing to a gradual housing recovery. Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers."

Low mortgage rates, high housing affordability, and a little economic growth are pushing the housing market toward a slight recovery. The high number of foreclosures is still keeping the market from recovering more quickly, however.

Other NAR projections for 2011 include:

- New home sales are estimated to rise 24 percent;
- Existing-home sales are projected to rise about 8 percent;
- Housing starts are expected to rise 21 percent;
- The unemployment rate is expected to drop in 2011.

We should expect some peaks and valleys, but it's important not to panic. In general, the trend is expected to be an increase over the next few years.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262