I wanted to share something with you all in my absence, so here's the April version of my personal newsletter: "The Real Estate Answer."  (The conversion glitched a little, but you can get the basic jist of it.  )

See you soon!  -MH

Hello everyone.  I do apologize for the lack of material lately.  I am working on my new blog which will be here, on the blogosphere soon.  Thank you to all those of you who read and commented on my blogs.  I really appreciate it.  I believe blogging and residing in this environment is a continual learning process, and I sure have learned considerablly for you guys.  I will be back soon, better than ever.  Cheers!  -MH

10 Steps to Prepare for Homeownership   

1.   Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2.   Develop a wish list of what you'd like your home to have. Then prioritize the features on your list.

3.   Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.

4.   Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 percent and 7 percent of the home price.

5.   Get your credit in order. Obtain a copy of your credit report.

6.   Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you.

7.   Organize all the documentation a lender will need to preapprove you for a loan.

8.   Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

9.   Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10.  Find an experienced REALTOR who can help you through the process.  For answers to your questions contact Matt at: mhecker@kw.com, 785.393.MATT (6288)

As you can see, many steps need to be completed at the beginning of the home buying process.  You may have other "items" that you believe should be added to this list, so go ahead... leave a comment and let me know what you think!

Thanks  MH

This real estate blog will let you dream a bit.  While your opinions on the type of home you want to own may change during the homebuying process, use this easy checklist to help you prioritize and make the shopping process less time consuming.  The large number of active and "For Sale" homes we are experiencing presently may lend itself to finding many of these "ideal" priorities incorporated in many of the homes in your area.  Also, an article published on CNNMoney.com on March 5^th, states that," Home values have declined across the country, giving homebuyers the best buys they've had since 2004..."  http://money.cnn.com/2008/03/04/real_estate/markets_less_overvalued/index.htm?cnn=yes   So let's go! 

Budget Basics Work Sheet

Buying a home requires much preparation before your become active in actually looking for that next home.  This should be read to continue that preparation, and it fits nicely into my series: 8 Ways to Improve Your Credit, [pre-] First Things First: 8 Steps to Getting Your Finances in Order and First Things First: Pre-approval to Purchase a Home

  The first step in getting yourself in financial shape to buy a home is to know what you make and what you spend now. Print this blog and list your income and expenses below.

Contact me for a FREE consultation and to find out what to do next today!  Thanks.  MH

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

I will be happy to share more ways to improve your credit quickly so you can take advantage of the present market. Contact me today and we'll get going! Thanks

This actually comes before my previous blog: First Things First: Pre-approval to Purchase a Home.  Getting Your Finances in Order.

1. Develop a family budget. Instead of budgeting what you'd like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt-car loans, student loans, revolving balances on credit cards-down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it's possible to get a mortgage with only 5 percent down-or even less in some cases-you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don't just plan on saving whatever's left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Now, read First Things First: Pre-approval to Purchase a Home

I will be happy to send you a 46-page, complimentary Buyer's Handbook [for free]  (retail: $21)  to become more familiar with the complete home buying process so you will be ready to go when you begin achieving the above steps.  Simply leave your e-mail address in your response, or send me a private email: mhecker@kw.com   Thanks!

Your information and e-mail address will be kept strictly confidential and will not be shared or distributed.

Pre-approval is the first step in the home buying process.  I know, I know, once you, the first time homebuyer, have decided it's time to go after your first home with full force the first thing you want to do is... start looking at homes!  You see "For Sale" signs everywhere you turn.  "Look at this!"  "Look at that!"

So you see an immaculate home that you just must have.  You find out what the asking price (list price) of the house is, and you mentally begin to run figures, "Income...savings...possible promotion..."Buying a house doesn't really sound like a bad deal!

STOP!!!  Have you been pre-approved, or even pre-qualified yet?  Do you or your realtor know how much you can afford?  You see, I'm human, just like you.  I sometimes get caught up in the moment, before I think the situation through in entirety.  I've got a great job, am making a little money, and feeling pretty good about myself.  Why not?  Go out and splurge!  Buying a home is a HUGE investment, one that many people will only do a couple times in their lives.  This is a choice of mammoth proportions and you really need to think the entire through, from beginning to the complete end. 

You need to know all of the steps to buying a home.  You need to know what needs to come first, second, third...  You need to know the many people who are involved in a single real estate transaction, the various timeframes, and the numerous pitfalls that can cause the deal and your dreams to crumble.  Obtaining a pre-approval, or at least a pre-qualification is the first victory that can successfully lead you to the victorious title of "Home Owner!"

Now, pre-qualifying yourself before you start looking for a home gives you a general idea of the price range you can afford. A lender takes a look at your income and expenses and plugs them in to a debt-to-income ratio. (Click here for approved lender)  This usually takes about 15 minutes and sometimes can be done by phone.  It does not typically include an analysis of your credit report or an in-depth look at your true ability to buy a home.  It will not nail-down an interest rate for you, nor will it take into consideration other factors that will affect the monthly payments a bank will allow you to make.  A Pre-approval means a lender has looked closely at both your credit report and your income and determined that you qualify for a loan. The lender will tell you the maximum amount of loan it will make, which loan program(s) you qualify for, and will discuss the interest rates it will offer for different types of loans.  Really, a seller will not even look at your offer on their home with any sincerity unless it is accompanied with a pre-approval, so let's get first things done first, and soon enough become an overjoyed first time home owner!

"What does Olathe and Lenexa, KS real estate look like right now?"  Well, here we go:

What this means to you:

If you're buying a home, it is important that you work closely with a highly-motivated realtor® who understands what's going on with the real estate market and local economy.  I can advise you on how to get the most for your money and what homes you may want to avoid, as there are homes on the market that are not priced at their fair market value.

If you're selling a home, it's also important to work closely with a highly-motivated realtor® who understands what's going on with the real estate market and local economy.  Your goal is to net top dollar - which you might not achieve if you over price or under price your home.  Homes priced right and competitively sell.

So "What does Olathe and Lenexa, KS real estate look like right now?"  Pretty darn good.  mhecker@kw.com

Real Estate Sickness 

Olathe and Lawrence, KS real estate (locally) as well as across the nation we are suffering from a "down market," a slump, a sickness.  Unfortunately, I think the source of this real estate sickness is partly due to "Misinformation."  The real estate news gathered from TV, different housing sources and friends alike all say that NOTHING is selling; that your "House will be on the market not for days or weeks, but for months or maybe even years!"  I believe that this preceding sentence covers the general thought of the misinformation that I'm speaking of.  It gets right to the heart of the real estate sickness that we are all suffering from. 

Now, it's Sunday afternoon, and I've actually got another sickness (a cold.)  Nothing big, but while I'm "Laid-up," I thought I'd share my thoughts and attempt to briefly explain the parallel and remedy that I believe will help make it all better.  For my cold, it's simple: take it easy and wait it out.  For the real estate misinformation sickness: We each, as Realtors, need to inform and educate the local public that HOUSES ARE SELLING.  Granted, those homes that are priced as if it's still the 2006 / 2007 real estate market have been sitting on the market for a while.  But if we educate our Sellers on the present market, stressing that their home needs to be among the top 20% in visual attractiveness / staging, and be priced very competitively (among the top 20% of the comps) it will sell rather quickly.  There are 2 markets out there: one is full of over-priced, stale properties, where sellers claim that, "Well, I know my home is worth $___,___, and I will not sell it for a penny less!" and one where good homes are selling for good prices quickly. 

See the articles in Realtor® Magazine Housing Inventory Seen Stabilizing and Housing Prices Still Above Average.  The revised monthly forecast from the National Association of Realtors, which followed nine straight months of downward revisions, calls for U.S. existing home sales to fall 12.5% this year to 5.67 million - the lowest level since 2002. Last month, the association predicted 5.66 million existing homes would be sold this year.  The Realtors' group also forecast sales will rise slightly in 2008 to 5.7 million, up from last month's prediction of 5.69 million.  The Spring season is coming; rates are low... (More on '...get Buyers...' later)

The real estate market is what it is.  It presently is, more or less, depending on your location, a Buyer's Market.  You might have two other words for the present real estate market: ?&*! and _*&%@^.  My two words are "Stability" and "Affordability."  Check it out!  Look at the Olathe, Lawrence and Kansas City markets.  (If there are any investors out there that are interested in KC investment real estate, drop me a line.)  There have been similar market shifts in the past.  Did all Realtors® throw up their hands and say, "It's time to look for a new job?"  Nope.  They shifted with it and continued to prosper.

I know, inventories are still high and prices might be down.  But inventories are high and prices are down!  Rates are still sub-6%.  Go out and find some Buyers!  Have your Sellers price their homes right and assure them that they will more than make up the difference on the Buyer side! 

I saw a 4 bedroom, 2 bath, 2,320 SQFT Tampa home this morning that has dropped it's price $100,000!  This statement might not support my thesis, when looking at it from the Seller side, but the house is MARKED DOWN $100,000.  Who wouldn't appreciate a deal like that?  The layout of this property even could allow a portion to be a rental.  Monthly income baby!

In closing, help me help you, by educating, and doing our part to attempt to bring out the Sellers and Buyers.  I know, this won't help the home loan implosion, but you can more directly be a part of the remedy, the solution.  Help cure the misinformation sickness.  Educate and prosper, my friends.

--> I wrote the entry, then found this story.  Sums it up pretty well, I think... Use Your Know-how to Build Business