Weichert $8000 Tax Credit Countdown

How Much House Can You Afford?

If you are thinking about buying a house, either for the first time or upgrading, it is a good idea to calculate how much of a mortgage payment can you afford. It’s best to calculate these numbers BEFORE you start looking for a house. Otherwise, you run the risk of clouding your judgment or wasting your time looking at houses you can’t afford. So, how do we calculate how much we can afford? It’s not a hard calculation but it does require you to be honest with yourself.

STEP 1 - Figure Out Your Net Income

This is your income minus:

• taxes
• Social Security withholding
• retirement contributions
• and anything else that is taken directly out of your check

For this example, we’ll assume that your monthly NET income is $4,500.

STEP 2 - Add Up Your Monthly Payments on ALL Your Debt

These items can include the following:

• student loans
• car payments
• credit card payments

NOTE: do not include your rent or current mortgage payment.

If this number is MORE THAN 30% of your net income (or $1,350 using the $4,500 from above), STOP! You have too much debt! Your first priority should be to pay down your current debts so that you can better afford a mortgage payment in the future.

STEP 3 - Add Up ALL Your Monthly Living Expenses

Be sure to include EVERYTHING (even items that are marked savings). Be honest with yourself. If it’s something you pay once a year, divide it by 12 to get the monthly amount.

NOTE: Again, do not include your rent or current mortgage payment.

Subtract your monthly expenses from your net income (found in STEP 1). What’s left over is the MAXIMUM amount that you can afford to spend on your mortgage payment (including property taxes, homeowner’s insurance, maintenance, PMI, and any other costs that come with home ownership.)

Keep in mind that this formula does not include any tax benefits that might be available to you via income tax deductions. It would be beneficial for you to sit down with your tax consultant or your tax software and run the numbers to see what type of deductions you might be able to get. Any deductions will lower your monthly costs of home ownership.

What if you’re not ready for a mortgage payment? Don’t sweat it. Pay down your debts, save up some money, and have patience.

For further assistance in figuring your maximum mortgage payment and finding the perfect home...call me anytime day or night!
Andi Thapa
Your Hoover Real Estate Specialist
(205) 602-4588

I'm Back and with a new word...FRUGAL

I took a short break to have my third child, but now we are all used to each other and have a somewhat steady routine.
Having 3 small children with gas prices averaging $4 a gallon and milk almost $2 more per gallon (and can you believe a 20 oz coke is $1.39!) , I'm learning everyday about being more frugal! As I’ve always been frugal, for the most part, I started to look into being greener as well.
For instance: I conserve water in my home, along with electricity. Primarily because I want to keep the cost down. BUT in doing so, I am also being kinder to the environment by not wasting unnecessary water OR using more electricity, burning more fuel and leaving less of a carbon footprint by cutting back.
While it may not be in our nature, we can often make do with less. Look first for monthly expenses that qualify as luxuries. Cut down on meals away from home and cook up all the goodies in the pantry and freezer before you head out to the grocery. Look for other ways to shave unnecessary spending from your budget. Driving is my big issue since I now drive a huge tank to stowaway all my children and get around for work. I am struggling with it, but am having luck finding ways to reduce my driving.
Whether you choose to live frugally, or you choose to live green, or be a tree hugger, or be conservative, it's all the same in the end. Just a matter of the words you put together to describe it
SO...to get back on point...I'M BACK and I'm helping clients buy and sell AND SAVE!
Call or email me now to get information on how I can help save you money when buying or selling your home. athapa@weichert.com (205) 602-4588

TIME magazine confirms it...

This is part of an email sent to me from Jim Weichert (President of Weichert, Realtors) that I thought was worth sharing...

(recent) TIME magazine article....

If you haven’t seen it, the article makes a case for why buyers should act now. We have been saying this for a long time, and now a major news magazine agrees that there might not be a better time than now to buy a home.

Some of the points the author Dan Kadlec makes are worthy of sharing:

· According to famed money manager Peter Lynch, one’s first investment, even above purchasing stocks, should be to buy a home. In his view, an owner-occupied home is nearly always profitable, even in a declining market.

· Interest rates are low, making it the ideal time for buyers to make a move. As the economy and real estate market recover, home prices and mortgage rates will rise making homes less affordable.

· Trying to time real estate might not pay off. Kadlec uses a great example: If you buy a home today for $218,900 with 20 percent down and a 5.5 percent 30-year fixed-rate mortgage, your monthly principal and interest will be $994.31. If you wait a year and purchase the house for less – $197,010 – but have to pay a 6 percent mortgage rate, your monthly payment would be $994.94. In the end, you would have saved nothing and wasted a year “living someplace you would rather not be.”

How more true could that be! The time is now, so get on the phone and give me a call!

Andi Thapa

for your Hoover, Alabama Real Estate Needs

(205) 602-4588

Thinking of buying real estate??

When your are ready to start visiting homes for sale, consider working with a Real Estate Agent. It is the first step to ensure your new home and community meet your needs. I am ready to help you from finding the right home all the way to the day you get the keys.
If you're interested in finding out how to save time and money when searching for your new home, please contact me at athapa@weichert.com or just give me a call anytime at (205) 602-4588.
Andi Thapa
Your official Hoover, Alabama Real Estate resident Agent

Selling your real estate...

Thinking of selling your home? I love to list and market homes in todays real estate market. My marketing, along with Weichert, Realtors, is creative providing many options to sellers so that their home can be sold at top dollar in today's market. I'm here to assist you in gathering all the information before taking the next step forward. As you may know, price is a key factor in selling your home. Call me today to your free home analysis based on the statistics in your neighborhood.
Your Hoover Alabama Real Estate Agent,
Andi Thapa
(205) 602-4588

Why "Hoover 's Happening"

Hoover, Alabama is a great place to live, work and raise a family and this is why... Hoover is home to more than 70,000 residents and offers an unprecedented quality of life. The housing market and cost of living are among the most affordable in the Southwest United States. The city of Hoover was recently awarded an international award for livable communities competing with cities all over the world.
Hoover, Alabama has an outstanding school system: Spain Park High School was recently nominated as a blue ribbon award finalist. Hoover High school was selected as one of 24 model high schools in the United States by the international center for leadership and education. Teachers and students are recognized at both state and international levels.
Hoover is the fastest growing city in Alabama with a wide variety of attraction to suite just about everyone. There are a tremendous number of shops, recreation and entertainment venues.
Residents of Hoover, Alabama have the opportunity to see first hand why Mayor Tony Petelos always says "Hoover's happening".

Don't miss out! Call me when you're ready to start visiting homes for sale!
Andi Thapa
(205) 602-4588
Let's make HOOVER REAL ESTATE happen!