First Time Home Buyer: Part 6 of 8

All About Down Payments

An important aspect of getting a home loan is saving money for your down payment. You have many choices to make your home more affordable to you.

Lenders used to require a down payment of at least 20 percent of the home's price. These days, however, many lenders offer flexible home loan programs allowing you to put very little down -- three percent or less of the home price. For some buyers it's possible to buy a home with no down payment at all, or to receive help from local down payment assistance programs.

If you decide to pay make a down payment less than 20 percent, your lender may require Private Mortgage Insurance (PMI), which protects the lender in case you cannot repay the mortgage. Talk with your mortgage professional to find out the smartest deal for you.

You'll also need to pay for closing costs, which are costs associated with initiating a loan. These can include loan origination fees, discount points, attorney fees, recording fees and pre-paids. They often will total from three to five percent of the price of the home.

Once you have you down payment and loan pre-approval, it's simply a matter of finding the right house. Please call or email The Davidson Team when you're ready to take this next step towards owning your own home.

First Time Home Buyer: Part 5 of 8

Choosing the neighborhood for your home

Buying a home is an investment in the neighborhood as well as the house. In fact, the character and amenities of the neighborhood may be as important to the property value as the house itself. No matter what kind of neighborhood you're looking for, it's important to know its history and future when you decide to buy.

Here's what to research:

1. Recent sales - Find out if the market is slow and what homes have been selling for.

2. Homes now for sale - What homes are listed in the area, and are they listed above past sales? This will give you a good idea of the area's overall market value.

3. Home appreciation - Historical data on sales gives the best indicator of a neighborhood's potential. Are homes appreciating at 3%, 5%, 10% or higher every year?

4. Schools - School scores and district boundaries are very important to research before moving into a neighborhood. The closest school is not always in your district, and school scores reveal if a neighborhood is invested in the schools' success.

5. Crime - Get the hard facts about any problems in the neighborhood -- don't depend on anecdotal information.

6. Demographics and growth - Find out how the area is growing and changing.

7. Community -- Learn about neighborhood features, such as public schools, shopping areas, parks, commuting options and more.

The Davidson Team can help you with this information-please give us a call or email us any questions you have. You'll find that the more you know about the neighborhoods you're considering, the easier it will be to narrow your search for your new home.

First Time Home Buyer: Part 4 of 8

The Importance of Pre-approval

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford.

Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation process. Many sellers actually prefer to work with pre-approved buyers, especially in hot real estate markets.

To find a mortgage professional and get started with your pre-approval for a loan, please call or email The Davidson Team. Our goal is to provide you with practical information as you consider your next move.

First Time Home Buyer: Part 3 of 8

How Much Home You Can Afford

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment?

Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.

The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn't be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.

Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment.

If you'd like more information about how much home you can afford, please call or email The Davidson Team. We can help you get the mortgage information you need.

New Listing: 2027 Woodridge, Wenatchee, WA 98801

You can find this week's featured listing at:

http://www.wenatcheehouses.com/address.php?property_ID=12

A must see! Won Best Overall Value, Best Technology, Best Kitchen & Best Master Suite in the 2007 NCHBA Tour of Homes. Brand new Craftsman style home with gorgeous water feature and fully landscaped yard. Outstanding master suite with jetted tub, beautifully tiled shower and large walk in closet. Birch cabinets in chestnut and stainless steel appliances. Includes a top-of-line sound system!

Warm regards,

The Davidson Team

First Time Home Buyer: Part 2 of 8

Considering Making a Move?

When you're thinking about making a move, the first steps in the home buying process are:

1. Deciding when you want to make your move
2. Considering how much money you would like to spend
3. Thinking about what type of home you would like
4. Deciding where you would like to live

The next step is usually finding out how much loan you can qualify for and deciding the type of financing will work best for you.

If you're in the "thinking about it" stage, you will want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness.

You will need to fill out a loan application and go through the lender's loan approval process at a later date. When you decide to buy a home, you will want to become pre-approved for a loan prior to beginning your home search.

Please don't hesitate to call or email The Davidson Team for additional information about the buying process. Our goal is to provide you with practical information as you consider your next move. And, when you're ready to make your move, we'll help you find your dream home and handle all the details of the transaction, so all you need to do is pack!

Blaine's Recipe of the Week - 10/3/07

Pot Roast Tacos and Grilled Corn

2 pounds beef shoulder
Kosher salt and freshly ground black pepper
Extra-virgin olive oil
2 cloves garlic, smashed
1 large onion, sliced
1 (28-ounce) can crushed tomatoes, (recommended: San Marzano)
1 tablespoon ancho chile powder
1 tablespoon cayenne pepper
1 tablespoon ground cumin
3 bay leaves

Vegetable oil, for deep frying
6 fresh medium corn tortillas
Kosher salt
3 cups finely shredded white cabbage
Guacamole, recipe follows
1/4 bunch fresh cilantro leaves

For the simple salsa:
1 (28-ounce) can whole tomatoes, drained, reserving the juice (recommended: San Marzano)
1 small red onion, roughly chopped
1 Serrano chile
1 garlic clove, roughly chopped
2 limes, juiced
1/2 cup chopped cilantro leaves
Kosher salt and freshly cracked black pepper
Extra-virgin olive oil, for drizzling

Season all sides of the beef with a fair amount of salt and pepper. In a large Dutch oven, or other heavy pot that has a tight cover, heat 2 tablespoons of olive oil over moderately high heat. Add the garlic and the beef to the pot, browning the meat on all sides, taking the time to get a nice crust on the outside. Add the onion and allow to lightly brown, about 3 to 4 minutes. Add the crushed tomatoes, plus 1 tomato can of water, spices, season with salt and pepper, to taste, and add enough water to cover the meat. Bring to a boil then reduce heat and simmer with a lid for 3 hours until the meat is fork tender. Let meat cool in the liquid. Shred meat, add 3 count of olive oil and set aside.

Heat a large pot of oil over medium heat. When oil reaches 350 degrees F, fry the corn tortillas 1 at a time. Place the tortilla in the oil and wait about 30 seconds. Then use the handle of a wooden spoon to press down into the center of the tortilla and fold it in the middle. Hold down for a few seconds waiting for the tortilla to form into taco shell and then drain on paper towels. Season with salt.

For the simple salsa: To make salsa, pulse all the ingredients, except the tomato juice, in a food processor. Add the reserved tomato juice if the salsa is too thick. Drizzle salsa with olive oil, cover with plastic wrap and set aside, allowing the flavors to marry.

To assemble the tacos: Lay some shredded cabbage as a base. Top with some shredded beef. Serve alongside Guacamole and salsa. Garnish with fresh cilantro leaves.

Guacamole:
6 ripe avocados
3 limes, juiced
1 medium yellow onion, chopped
1 garlic clove, smashed then minced
2 serrano chiles, cut into rounds
1 big handful fresh cilantro with stems, about 1/2 cup, finely chopped
Extra-virgin olive oil
Kosher salt and freshly ground black pepper

Halve and pit the avocados. With a tablespoon, scoop out the flesh into a mixing bowl. Mash the avocados using either a fork or potato masher, leaving them still a bit chunky. Add the remaining ingredients, and fold everything together. Drizzle with a little olive oil, adjust seasoning with salt and pepper and give it 1 final mix with a fork.

Lay a piece of plastic wrap tight on the surface of the guacamole so it doesn't brown and refrigerate for at least 1 hour before serving.

Corn:
Grill corn until outside is blistered and has some color. Spread the following sauce on corn: 2 parts sour cream, 1 part mayo and 2 tablespoons cilantro. Then sprinkle with parmesean cheese and chili powder, and top with lime.