Now it is time for you to look deep into your heart (and bank account) and decide if you are ready to buy a home. Finding your motivation and specifying your wants and needs is a good beginning, but there are other things to consider before taking the leap into home ownership.

What's your financial situation?
What's your debt load? Credit cards, utilities, car payments, childcare and groceries are factors to consider. Don't forget the money for a broken air conditioning unit will be coming out of your pocket. Will you be able to handle unforeseen emergencies, monthly bills and a mortgage payment? As a rule of thumb, no more than 28 percent of your gross monthly income should be used for housing payments.

How's your credit history? Delinquent credit card and bank payments, past bankruptcies or a student loan that's unpaid can severely affect your ability to get a mortgage loan. There are many sources to get a free credit report. You can go online to find out your current credit score. Below are a couple of other sources.

Credit Unions:
Experian 1-888-EXPERIAN (397-3742)
Equifax 1-800-997-2493
Trans Union 1-216-779-2378

What's your employment history?
If you have been working continuously for the past two years, a lender should consider this to be steady employment. This does not mean that to be approved for a mortgage loan you need to have worked at the same place for two years; in fact, job changes can be favorable, especially for an increase in pay.

However, if your work history has not been continuous for the last two years, as long as you have a reasonable explanation for any breaks in employment, you still may qualify for a loan.

Have you saved money for a down payment and closing costs?
In addition to the amount of money you will have to borrow for your home, the lender will require you to invest, in cash, around five to twenty percent of the purchase price toward the loan. If you are looking at a $100,000 home, a ten percent down payment would be $10,000. Closing costs are additional expenses incurred throughout the buying process that must be paid for in cash, like attorney and inspection fees, escrow charges and document fees.

It is that time of year again for the firefighters bucket brigade blood drive. If you have not donated blood in the past 8 weeks please join us at the Healdsburg Fire Department from 2:30 today, Tues, Jan 19^th. This is a friendly competition among most of Sonoma Counties fire departments. They will be serving the famous fire fighters chili and corn bread. It is a great place to see old friends and maybe save a life. For more information please contact the Blood Bank of the Redwoods707-545-1222 or www.bbr.org

Thank you! www.realestateofhealdsburg.com

That title may sound quite seductive and it is for me. Just south east of Healdsburg at the end of Grant Ave (past Giorgio's) on a hill over looking Healdsburg are a pair of Redwood Trees. Locally known as the Adam and Eve trees. We used to hike up there with our church group. At the time there was a lady, Nell that didn't mind if you hiked her property. The trees are dead center in this picture and the photo was taken from the balcony of my home the other morning. My friend Tom Curtis used to say that they were the only trees that were used by local aircraft as a landmark. If you ever go up there you will be surprised how beat up they are from lightening strikes. My Godmother had her ashes scattered there and that is my wish also. So next time you are at Giorgio's look east at the top of the hill and say hi to Adam and Eve!

Best wishes,

Bob

www.realestateofhealdsburg.com  

It is a MAGNIFICENT MONDAY here at www.realestateofhealdsburg.com . I am back at work feeling fresh with nothing but hope (and a lot of great skills) in my heart. It is funny because I never really left for a holiday this year. I did a lot of door knocking in the areas where I do most of my business. In the past year I have obliterated a few neighborhoods with my marketing. In the past 2 weeks I made a point to go door to door and thank each household for reading my materials and letting them know that even though these are challenging times, these are great times.

Why are these great times? This is a great time to learn for ourselves and teach new skills to our children in the areas of money and finance. The lessons that we learned in the past 5 years are crucial to us becoming a better country with better families and sustainable lives. We place so much emphasis on our schools and their rankings but where are our children going to learn about money. What is the #1 cause of divorce? Money problems. This is a great time to lift up and live within our means. Take the stand that we will never let ourselves or our children get in this terrible global situation again.

Why are we "Camped Outside The Promised Land". Because change is happening quickly. If we act as though we have already moved ahead and are outside of this recession then it will happen a lot quicker. Many may say that I am being naive but I can argue that with any of you. Think of this, because I know that it is true of me. Every dream and goal that I have set out to do has happened. I have accomplished the impossible in my life. Every time I set a goal, I achieve it. If you look back at the biographies of all the great leaders and thinkers you will see them all say the same thing. When asked what they would have changed in their lives the answer is  always the same. " I should have dreamed bigger dreams.

So dream big this year. When you are setting your goals do it WITH your family and sphere of influence. When you need help ask. We are all here to help each other and that is the great gift of life.

HAPPY NEW YEAR!

Bob Santucci

www.realestaeofhealdsburg.com

I was trying to post a cool new count down clock for the first time buyer tax credit. I have attended many seminars on the details of this recently so I thought it would be good to strut my stuff. Well in stead of the fancy graphics you will just have to absorb this.

The newest version of the tax credit is not just for first time buyers. It includes buyers of second homes that have lived in them for the past five years. This can be a MOVE UP or DOWN. If you are an empty nester and you want to down size this is a great time to buy a smaller home, use the credit on that , rent your prevoius home till the market gets better then sell it after 3 years.

There is a lot of good news in this new tax credit. If you need more and are in Sonoma County drop me a line.

www.realestateofhealdsburg.com

I have been in some form of sales and marketing my entire working career. When I was a Chef for 15 years it was my bread and butter to have that knack of out marketing the competition. Of course I had the great product, I just needed to get them in the door then word of mouth carried me from there. Much like my real estate career.

I found that the best way to market is not to spray advertising all over but to target market. Pick a sector of the market that is actually looking for what you have and cater to them. When you focus you can accomplish anything. At the end of the day you will say I set my goals to low because I accomplished my goals so easily.

We have that opportunity right now but in a different fashion. April 30th of next year the $10,000. tax credit for first time buyers will run out. $6,500. credit for second purchases if you have been in your home for 5 years. You hear it all the time "There has never been a better time to buy a home". Blah, Blah Blah! Well it turns out,even though you are sick of hearing about it, it is true and here is how.

Because we have a target date to achieve our home purchase goal of April 30th this will be easier. I don't know about you but I do better when I have solid goals and deadlines.

1. Between now and Xmas choose your Realtor. You will be at a lot of social gatherings so ask around. Remember people love to tell horror stories but not good stuff so put your filter on. Some great agents do make errors but if they are the busiest and best then there will be a higher degree of minor errors. You want to work with the busiest and best don't you?

2. For the rest of the month learn all you can about the purchase process. It is simple but there are a lot of steps to it and being well educated is key. You are your own advocate. Many tools and articles can be found on my website www.realestateofhealdsburg.com Feel free to learn stuff there and if I have missed anything drop me a line, I am here to help.

3. For the rest of the month till Xmas choose the neighborhood. Target what you want and you will receive it. I suggest that you choose 3 area that you want to live in and focus there. Check out the schools, stores and any other service providers that you will need. Remember you will live there the next + years so think it through.

4. Get qualified to purchase. This step should probably be first but you could do all of the first steps at once if you are a maniac over achiever like me. If you do not like what the lender is telling you that may be a good thing. It is tough to qualify now and a good lender will not necessarily paint a rosy picture but he will give you a good solid plan. In fact that is what inspired this column. One of my prime lenders and I have a good solid target of home ownership for my previously under qualified clients. Just 3 months ago it was hopeless for them but with a good plan and coaches they will purchase between January 31st and April 30th.

5. Start looking at houses. Get a feel in your target area of the difference between a 3 and 4 bedroom. I know it drives me nuts when my clients want to look at homes that are outside of what would be right for them but it is th only way to find out what is best for you. This will be a huge longterm purchase so you need to be confident in it when you sign.

6. Be patient. Realtors try their best but we are not perfect. We must be accountable though. Ask the hard questions when you feel under represented. Your agent should be direct with answers. This is business and slackers should have been sifted out in this environment.

7. Pray, have your friends pray for you, do anything you have to to stay at the top of your game. In a perfct market with well qualifed buyers this process is an emotional roller coaster at best so hang tough.

8. I have read a lot of biographies of great thinkers, heroes and statesman and I always see one common thread. They all at the ends of their lives say the same thing. "I have accomplished all that I set out to and if I had to do it again I would have set higher goals."

Good Luck now Go Get Em !

Well I guess that I need to clarify that statement. First of all after years of being in this business I realize that there is no such thing as an expert in real estate. My business partner will be the first to echo that same thought. She has been a broker for over 25 years and she is the first to say that there are no experts. I am currently in a transaction with another broker of 30 years and this morning he said the same thing. It is great to hear that because both follow that statement with the comment " that is why I love this business, there is always something new to learn". I myself say the same thing and I am a lifelong student.

I got started thinking about this because of a couple of personal situations where my best friend brought it to my attention about my thought process in choosing service providers. In one situation I had just come back from a meeting with a financial adviser from a well known franchise. When I was sharing the information with my friend they asked "Why wouldn't you go to a MBA and have they used the same advice in their own life". Last week we were reviewing an inspection and we all realized that the inspector had shot all of the photos from the entrance to the crawlspace and could not fit under the house. We were about to choose a new Internet service provider until we realized that their preferred form of communication was by way of fax. We were choosing a counselor for a friend and we kept on getting "referred" to one source. It turned out that the referrals were being paid and the entire time we should have been choosing the PHD on the list!

So with that said do your due diligence. Dig deeper and choose wisely. I know we all get into a routine and habits that are comfortable. That is fine in many areas of life but when it comes to business it is serious and the answer " We have always done it this way"is not enough. Take a moment to think about how you choose. There are a lot of great service providers out there that need work and it is a good time to shop around. And remember to shop local it helps us all out.

Advertisement

Harney: How the 'move up'

tax credit for homebuyers

works

By Kenneth R. Harney

Posted: 11/14/2009 05:00:00 PM PST

Take a close, hard look at the new $6,500 federal tax credit for so-called "move up" homebuyers that

passed the Senate and House this month. Though it's been getting second billing to the original

$8,000 credit for first-time purchasers - now extended by Congress through June 30 - the

$6,500 credit for current homeowners just might have your name on it.

First things first: The new credit is available now. It took effect the day President Barack Obama signed

the legislation creating it - Nov. 6. This means that if you fit the key criteria - you've owned and

resided in your current home for a consecutive five out of the past eight years, and your adjusted

household income doesn't exceed $125,000 if you file taxes singly, $225,000 if you are married filing

jointly - you can claim the credit as soon as you close on a qualifying house. That could be next week,

next month or next spring. There is no "move up" requirement in the new credit. In fact, homeowners who

plan to downsize into a smaller dwelling may prove to be significant users of the credit, along with people

who are relocating because of employment changes. Some other key features of the $6,500 credit you

ought to know about: Whatever you intend to purchase, the house cannot cost more than $800,000.

The replacement house must become your main home. There is no requirement in the legislation that

you sell your current home. You could rent it out, turn it into a second home, or list it for sale later in

2010 when prices might be higher. If you plan to retain it, however, make sure you move into the new

house on the day you close so that there is noquestion it was your principal residence at that time.

Like the first-time buyer credit, the $6,500 version permits a broad range of dwelling types for your

purchase. These include newly constructed or existing single-family homes, condominiums,

manufactured or mobile homes, and boats that function as your principal residence. You cannot

claim the credit if you are buying a second home or an investment property. The IRS is required by

Congress to scrutinize claims for credits - both for the $6,500 and the $8,000 - far more closely than it did

earlier in 2009. The revised rules require taxpayers to submit copies of their settlement statements (HUD-

1 forms), along with their requests for credits using IRS Form 5405. Congress' new rules also prohibit

individuals under the age of 18 or who are counted as dependents on another taxpayer's filings from

claiming the credit. Homebuyers in 2009 - those who go to closing after Nov. 6 but no later than Dec. 31 -

can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly,

eligible purchasers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. If you

aren't sure if you can make the deadlines established for the new credit - a binding contract by next April

30 and a settlement by June 30 - do not assume that Congress will provide another For an excellent

consumer resource on both the $6,500 and the $8,000 extended credits, go to

www.federalhousingtaxcredit.com , which is sponsored by the National Association of Home

Builders.

Thank you Ken Harney of the an Jose Mercury News for allowing me to post this great article

Contact Kenneth R. Harney at KenHarney@earthlink.net

.

Harney: How the 'move up' tax credit for homebuyers works - San Jose Mercury News Page 2 of 2

http://www.mercurynews.com/business/ci_13783230 11/16/2009

I love the movie Willow. If you get a chance to see please do. There is a point in the movie where Willow, a little person with a HEART OF SOUL, that the village is depending on faces a great challenges and a the sorceress tells him "Patience Willow" I do not know why that stuck with me so but it did. Willow was the underdog having to persevere all these great challenges, a heart of gold, fearless and yet so human. In the end he wins and the key was patience. It has all the great elements that you need in a movie.

The same holds true for a short sale. If you stay on track and make it your passion you will prevail.

I heard this morning that there will be 10 times more short sales next year. On the face of that it sounds bad but it is not all that bad. Consider the sellers, they will be in a better position and not ruin their credit in a foreclosure. The lenders will be dealing with this better. A couple already have. It will help stop a global collapse of the worlds economies. AND you get to know your Realtor really well after 6 months.

So with all that said I hope you all have a great Thanksgiving, if you eat enough turkey you may be able to sleep till your short sale closes!