DesMoinesFirstHome.com

Tonight: Radio Show With Mike Davis Talking About First-Time Homebuyer Information!

Tonight, from 8:00pm to 9:00pm central time, I'll be speaking with Robb Spearman, broker of RE/MAX Real Estate Concepts, about First-Time Homebuyer Programs, the steps to buying your first home, and everything pertaining to being a first-time homebuyer.  Please listen in, and join in the chat!

Just go to macsworldlive.com to listen to the program!

Those Who Wait Will Pay Thousands More This Spring.

The Stephanie Reed Mortgage Team, with Academy Mortgage, wrote a very good article the other day, and they gave me permission to re-post it here.  I am not a fan of "high pressure" sales tactics, and that's not what this is about.  However, if I don't share this kind of information with you, to save you money, I'm not doing my job as your Realtor.

Here's the article:

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board’s mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these “seller concessions” can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead –submit all FHA mortgage applications by the last week of March.

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Mike here again: This article is brought to you by the Stephanie Reed Team.  You can reach them at 515.988.7074.  You can reach me at 515.966.4510.  When you are buying your first (or second, or third) home, you need a good team on your side, and that means both a Realtor and a loan officer who care about you and your needs.

If you prefer to email me, you can do so by clicking here.

 

The REALLY Important Stats to Know!

Here's an article at The New York Times that you might want to glance over; it details some of the Midwest's home sales in December.  (Des Moines had a sales increase of 5% over November -- but other cities had a marked decrease.)

But the article reminded me of several key points that I'd like to share with you:

(1) What's happening in the rest of the country does not matter.  All that matters is what's happening in Des Moines.  If you watch the talking heads on CNN and the other networks, remember, they love reporting bad news.  You can't take information about Arizona or Florida or California, or even other parts of the Midwest, and apply it to Des Moines metro, Iowa.  And the truth is, we're not doing bad at all here.  (And I'm not saying they are trying to do that in this article; it's just worth remembering that what you see on the national news about the real estate situation, in most cases will not apply to us here in good old Des Moines.)

(2) The article is a bit "doom and gloom".  Quotes such as "It's been a tough market" and the like.  Well, my question always is, tough for who?  The buyers, or the sellers?  Because when homes aren't selling, and the economy isn't great, then it's a GREAT time to be a buyer.  Prices are competitive, rates are very low, and as a buyer, you have a lot of choices right now.  So remember, when everyone is complaining about what a tough real estate market we are in, then it's the perfect time to buy a home.  The market will always correct itself, but in the meantime, you'll have a home that you got a nice deal on at a very low interest rate.

(3) I don't know why news organizations even bother to report sales increases or decreases from month to month.  Month to month does not matter very much.  What matters more is comparing, for example, December 2008 sales with December 2009 sales... in other words, the same month, 1 year later.  And in fact, there were several hundred more homes sold in December 2009 than there were in December 2008.  So in actuality, it was a great month.

Questions?  Comments?  I welcome your thoughts.  Please feel free to post, below.

Des Moines Register Live Video: A conversation with metro school leaders

Thanks, Des Moines Register!

Watch live streaming video from desmoinesregister at livestream.com

"How could communities better support their schools? What does parental involvement really mean? Should school districts share services to make the best use of tax dollars? The Register's editorial board will sit down with three Des Moines area school superintendents today at noon to ask these questions and others."

Watch here, or at the Register webpage.

 

First-Time Homebuyer Question for Friday, 1.22.2010

I'm starting a new blog category today here at DesMoinesFirstHome.com -- first-time homebuyer questions!  When people email me to ask a question, I will later post the question and answer here for everyone to benefit from (with names removed, of course, for privacy).

Here's today's question: Hi Mike -- I know our options are very limited but we would really like to get into our OWN home!  I have a few houses that I have been eying but do not know what price range I should be looking for.

My answer: There are really two ways to determine what price range you should be in.  First, what is YOUR comfort level of a monthly payment, should you buy a home?  Then second, my loan officer and I would help you with a very quick preapproval, to make sure that what you're comfortable with, you can be approved for.

You see, mortgage companies determine how much of a home you can buy based on monthly payment, not price.  We then work it backwards from what monthly payment you qualify for to determine what price of home you will qualify for.

Hope that makes sense.

The very best thing you could do now is to fill out the very short form on my webpage, here, and my loan officer and I will get you approved right away!

2010 Des Moines Ice Storm

Here's a really neat photo gallery of yesterday's ice storm, at the Des Moines Register.  Click here to view.

Home Buying For Dummies, 4th Edition

I've designed this website so that potential first-time homebuyers in the Des Moines area can get as educated as possible about the home-buying process.  With that in mind... Home Buying For Dummies is a really good book to read to get even more details.  You can buy it through the link below, or, even better:

Commit to me as your Realtor, and I will buy the book for you, and give it to you right away!  A few minor restrictions apply, of course: Contact me for details.  But basically, I want every one of my First-Time Homebuyer Clients to have this book.

Always remember that it's FREE for you to hire me as your BUYER AGENT.  (More about that here.)

So get started!  Email me at mike@mikedavishomes.com , or call me at 515.966.4510!

Interest Rates Are Going Up!

The housing market is getting better... and that is one of the things that makes rates go up.  What does that mean for you as a buyer?  It means that if you've been thinking about buying a home, but haven't gotten around to it, you shouldn't wait:

For example... with the economy climbing slowly out of recession, and the Federal Reserve expected to throttle back on its mortgage securities purchases , interest rates are now trending upwards.

Last week's thirty year average fixed rate for new mortgages hit 5.2 percent, according to the Mortgage Bankers Association. That's still very low by historical standards, but it's up nearly a quarter of a percentage point just since mid December.  (From Homes101 Real Estate News)

If you want to buy a home, contact me: mike@mikedavishomes.com , 515.966.4510, or instant message me right from this website.

Time to Keep it Simple!

"Living in a way that is outwardly simple and inwardly rich." - Duane Elgin

"I went to the woods because I wished to live deliberately, to front only the essential facts of life, and see if I could not learn what it had to teach, and not, when I came to die, discover that I had not lived." - Henry David Thoreau

I read an article posted at Newsweek yesterday with great interest: "Those entering the workforce now will likely make less and save more—not just in the short term but for the rest of their lives."  I've been seeing this more and more: People are putting more importance on quality experiences, and less importance on things.

This is something that I've taught my clients for a long time, and something that my wife and I put into practice ourselves, years ago.  I've been a Realtor for almost 15 years now.  My wife was a criminal prosecutor (yep, just like on Law & Order), and a very good one.  She loved her job.  However, when our son was about 2 years old, we both realized that one of us needed to stay home with him.  And she wanted to be the one to do it.

Danielle felt that she could be a really great prosecutor, or a really great mom, but that she couldn't do both.  She felt that inevitability, our son would suffer if both parents worked.  And I agreed.  And I told her that I would be more than happy to be the one to stay home... that it was totally her choice.

Well, this isn't meant to be a lecture about the pros and cons of both parents working.  What I want to say is this: We were both making good money.  Over and beyond the parental issues, we had a choice to make, and that was, in essence: Is it better to have things (two cars, total security, a huge house, lots of money, etc.), OR, to be able to live the kind of life that we felt was important?  In other words, what was more important to us: Our life experience, or money?

If you're rich, you don't have to make choices like this.  But most of us aren't.

Well, she quit her job, and has loved being a stay-at-home mom ever since.  Is it always easy?  Absolutely not.  I'm not ashamed to say that we have only one car, and that we don't have gobs of money; but I'm very proud to say that we spend lots of time with our son, and that he's told us many times over the years how much he loves having a mom that stays home with him, how much he loves having parents who have the freedom to volunteer at his school, and so much more.

It all boils down to this: If you have less money these days, don't look at it like you've lost something; instead, figure out what you've gained.  If you have no debt, it's really surprising how little a family can live on.  When you buy your home, don't buy the most expensive home you can get approved for.  Don't buy anything if you have to put it on a credit card.

Please don't misunderstand me... I'm not saying having money is a bad thing.  Money equals security, not to mention little things like food on the table.  But our culture is starting to learn what some of us have known for years: If you have to sell your soul to get that money, it's just not worth it.

I listen to people complain about their bills, that they're over-worked, have no free time, and that their kids hate them... and I see them parking their second car in the garage, buying a Wii and a ton of games for it, and a big-screen TV with a huge cable or satellite dish bill.  In the meantime, they take their kids to school early, then work so late that they have to pick them up at daycare an hour before bedtime.

There's so much that you can do that costs little or next to nothing: Hulu.com has free TV programs; you can watch any DVD with no late fees with Netflix; you can check out books for free at the library, or take your kids to the Science Center, or, hey, a neighborhood park!  It just takes a little imagination.

I'm not saying it's easy.  But you can do it.  There are plenty of forums on the web that focus on having a simple life, and some really good books (re-read Walden!) on the subject.  Decide now that your focus from now on is on having a quality life... not a quantity of things.

Further reading:

Turn Off the TV! - the Mom Blog Network

Voluntary Simplicity

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Don't Hassle With Utilities When You Move

NEW: Another free service from Mike Davis and DesMoinesFirstHome.com: If you work with me as your Buyer Agent, then I will take care of the hard work and hassle of getting your utilities turned on in your new home.  Gas, electric, water, internet, phone, tv, etc... I'll take care of it all!

You won't believe how hassle-free this will make your move.  It's just one more reason to work with Mike Davis... your BUYER AGENT.

For more information about this brand new service, email me at mike@mikedavishomes.com , or call me at 515.966.4510.