My wife and I have been married for 32 years, brought 8 (no, that’s not a typo) kids into this world, and have had the opportunity to buy four homes in which to house them and us.   And there has never been a single time that we’ve agreed on what we are looking for when we buy them.

Sure, we knew about how many bathrooms we needed (there were never enough) and how many bedrooms would fit all of us.  We could even agree quite often about the size of the garage (again, never big enough).   But that’s about where it ended.  You see, for me, I dreamed of finding a house that I could move into, unpack, toss my feet up on the coffee table and stay awhile without having to replumb, rewire or repaint.  My wife, on the other hand, would still be carrying in boxes from the moving truck as she plotted exactly which shade of beige (during my marriage, I’ve learned that there are roughly 38,000) she would paint the kitchen.

The fact is, men and women are different.  And a recent Coldwell Banker survey learned a lot more about how.   Women would rather live closer to their extended family than their job, and they tend to know faster whether a house is right for them.  Men were more likely to need to see a house two times or more before making a decision, and were far more likely to want to turn an extra room into the proverbial “man cave”; i.e, an entertainment center.

What I thought was particularly interesting, however, was how many (70%) of those surveyed said that they make financial decisions together—something I found very heartening.   After all, things like buying a house are huge commitments for any couple, and both of them should have a say in the process.   And not just choosing the house itself, but also realistically discussing the kind of payment they can afford each month, what kind of financing they’re going to look for, the real estate agent they’re going to choose and the lender they’re going to work with.

And, most importantly, how soon the kitchen has to be painted.

As a Texan, I’m used to pretty much everything being bigger here, from the size of our trucks to the smiles on our faces.  It was nevertheless disappointing to read in a report from RealtyTrac that Texas is now making some big news in a not-so-great way:  it’s in the top 10 states for foreclosure filings.   Foreclosures were up 6% in July from the month prior—and up 16% from the same period the previous year.

But according to Mark Dotzour, director and chief economist of the Real Estate Center at Texas A&M, not all is lost in the Lone Star State.  In fact, he believes that now is the time to buy or build a home here, with one significant caveat:  that “the federal government doesn’t cause further damage to the U.S. economy with higher levels of intervention in healthcare, taxation, cap and trade and rewriting accounting and legal standards.”

Now generally I’m a pretty optimistic guy with high hopes for the future.  In fact, I’m one of those folks who encourages people to turn off their televisions, ignore the doom and gloom and go out there and do some economic stimulating all on their own.  I’m a cheerleader for home ownership and believe that the recent downturn can end once the public starts investing in real estate—and their futures—once again.   And yes, I’m going to keep leading the charge for transparency in mortgage lending as a way of turning this industry around.

But I’ve got to tell you that Doutzour’s warning gave me pause.  You see, in the midst of raucous town hall meetings, the skyrocketing national debt, and the government being involved in private business a little too much for my comfort (regardless of which party is in office), I’m just not sure that “further damage” isn’t at least somewhat inevitable.

And this is one time that this Texan actually hopes that he’s wrong.

Are you thinking of becoming a first-time homebuyer?   Then put on your running shoes and get moving!

Time is quickly ticking by for folks looking to enter the housing market before the $8,000 federal tax credit expires.  That deadline?  November 30, 2009.

Sure, you’re just winding down your summer vacations and getting the kids ready to head back for school.  It’s likely that the last thing on your mind is what will happen after Thanksgiving.  And that could be a mistake.

Why?  You see, because of recent changes in lending laws, mortgage companies are simply unable to close loans as quickly as they used to—even those who are committed to transparency in mortgage lending.    Underwriting that used to take a matter of days now takes weeks.  Appraisals are taking longer.  More homeowners are (wisely) getting home inspections done prior to the sale.  And some homeowners are buying properties under short-sale agreements, which only lengthens the process even more.  As such, it’s wise to count on about 6 weeks to 2 months to go from loan application to the closing table.

That means that RIGHT NOW is the time to be pre-qualifying for your loan and working with a real estate agent to find the right home.

If you’re not sure what the tax credit is, here is a great “fast facts” overview prepared by Chicago Tribune columnist Kathleen Lynn in an article earlier this month:

• The tax credit is equal to 10 percent of the home’s purchase price, up to a maximum of $8,000.
• Buyers can claim the credit on either their 2008 tax return or 2009 tax return. If the closing occurred after April 15, 2009, a buyer can claim the credit on a 2008 tax return by filing an amended return. For more information, go to www.irs.gov.
• The home sale must close by November 30, 2009.
• Full credit is available to buyers with modified adjusted gross incomes of $75,000 (single) or $150,000 (married).  A reduced credit amount is available for people with incomes of up to $95,000 (single) or $170,000 (married).
• Two programs — one state, one federal — offer bridge loans or “prefunds” so eligible buyers can use cash from the credit on their home purchase this year. For more information, go to www.fha.gov.
• Buyers do not need to repay the credit if they occupy the home for at least three years.

So if being in your new home for the holidays is on your wish list—and if you want to get the benefit of a fairly hefty tax credit—lace up your shoes, stretch our your hamstrings and begin the marathon that is buying your first home.

On your mark, get set….GO!

New home sales outpaced analyst predictions in June.  No, you read it right—although you’re welcome to read it again and just let it sink in.   According to the Commerce Department, new home sales rose 11% last month, a feat that Bloomberg.com reported was the biggest one-month jump in 8 years.  And at the same time, the number of new homes on the market declined—as did new home prices.

As I see it, this is not only great news for the real estate market, but also for you if you’ve been thinking about buying a home.

You see, just like retailers reduce the price of their merchandise at the end of each season to move it off the shelf, it seems that builders have been reducing the prices of their spec homes in order to reduce debt and get to a more liquid position.    That means that you can get a beautiful, brand-new home with all the upgrades you’ve been wanting for thousands of dollars less than you would have paid even a year ago.

Combine a brand new home with a rate as low as 4.875%, and you’ve got a deal that is in my mind altogether too good to pass up.   Especially if you’re buying the home you will plan on being in for years to come, because you’ll have a virtually unsurpassed opportunity to earn valuable equity when the market recovers.

Now keep in mind that new homes aren’t the only way to go.  Recent reports from the National Association of Realtors reflected that sales of existing homes rose in June for the third consecutive month as well.   That means that people with a long-range perspective—folks just like you—are beginning to take advantage of lower-priced real estate in all of its forms.   And it also means that, if trends continue, we’ll start to see a reduction in the amount of available properties on the market.  And home prices—and values—are sure to follow.

The best way to get started on owning one of these properties?   Work with a loan officer to get pre-qualified.  Make sure he/she is committed to mortgage transparency.  That way when you do go to talk to a real estate agent, you know exactly how much home you can afford—and have the power to make a much stronger offer.

Questions?  Comments?  I’m always glad to hear them.

Are you a renter who’s been considering buying a home of your own?  You might want to start “considering” a lot harder.   Why?  Because as home prices have declined over the last two years in many areas, the gap between the amount you pay to rent and the amount that you’d pay for a mortgage payment is narrowing.

In fact, according to a recent AP story, “the gap between the monthly mortgage payment on a median-priced home and the median rent has shrunk from $777 a month to just $221 in the past three years.”

And in some areas—especially communities that were hard-hit by the recent downturn—that gap is even smaller.  As little as $100 in places like Atlanta, St. Louis or Indianapolis.

So here’s what I mean.  You live in a nice area—nothing too fancy—and pay $650 a month for a decent two bedroom apartment.  For a 3 bedroom, two-bath starter home in the same area, your monthly mortgage payment could be as little as $900—a difference of $250.   Plus, you could have all of the benefits of home ownership, including tax benefits, the opportunity to earn equity and more.   And until November, you can also take advantage of the federal homebuyer credit that will cover up to $8000 of your home purchase price.

Now I admit it, I’m in the lending industry (hence, my writing of this blog) so I happen to believe that homeownership is a good thing.  But I also know that it doesn’t make sense for everyone, all the time.   So here are a few things that you’re going to want to look at before you grab the keys to your first home:

1. Homeowners, unlike renters, have the chance to make changes to their living environment.  They can paint, upgrade countertops and appliances, install new flooring and pretty much do what they want.  At the same time, homeowners must pay taxes, perform regular maintenance and upkeep (unless you want your neighbors to despise you) and foot the bill when things like water heaters break.
2. If you’re planning on moving in the next year or two, or if your job is unstable, renting generally provides more flexibility when or if you need to move.   But if you’re happy with your job and your neighborhood, and you don’t anticipate moving in the next 5 years or more, homeownership provides you the stability of knowing how much your payment will be (except for taxes—no one can guess that one) month after month.  You don’t have to worry about rent increases or having your complex go condo.
3. If you haven’t really thought about homeownership until now, have a hard time making payments or don’t understand the process, you may want to take a step back and learn more about how to prepare for homeownership.   On the other hand, if you’ve been preparing for homeownership over the last several years by paying down your debt, keeping your credit clean and saving money for a down payment, there are a lot of bargains out there to be had.  Moving now, when the market is just starting its recovery cycle, may give you an unprecedented opportunity to earn equity.

So, if you still think that now may be the time for you to enter the world of homeownership, start the process by talking with an ethical and transparent loan officer and getting pre-qualified.    I cannot recommend strongly enough the importance of working with one who is committed to absolute transparency in lending;  in other words, one who has no problem showing you exactly what he or she is earning on the loan—including precisely how the yield spread premium is being used.

Man, I do.  That thrill of opening your front door for the first time after you sign the closing papers and realizing that everything you see is YOURS.  It’s an incredibly liberating—and a little mind-blowing.

You’d think that with all of the doom and gloom in the news, no one would ever get to have that experience again.  But according to a recent USA Today article, Stephanie Armour reports that first-time homebuyers are driving existing home sales.    And that’s good news in many ways.

Second, as mentioned in Armour’s article, many homebuyers are choosing to purchase “distressed” houses—homes that have been foreclosed.  Anyone who has driven by foreclosed property knows them instantly: the overgrown lawns, an obvious lack of maintenance, that feeling of abandonment.  As distressed homes welcome their new owners, appearances improve—and neighborhoods become more desirable.  And again, more people are willing to invest their time and money there.

Third, when a first-time homebuyer begins to invest in the home by remodeling or other efforts, it spurs other industries.  In areas where home building and remodeling has slowed, this is a crucial factor in overall recovery.  Every time a homebuyer makes the decision to install new flooring, change out a bathroom or repair drywall damaged by their home’s previous occupant, money starts flowing into the local economy.  And that is a very, very good thing.

Today interest rates are at historic lows and there are credits for first-time homebuyers that we’ve never seen before.  In short, there’s never been a better time for potential buyers to take that leap and make a home their own.