With all the turbulence in the real estate industry folks are standing on the sidelines waiting for things to settle down.  Do not just wait—be proactive.  You need to make sure you look great to a lender when you apply for a mortgage.

      Many folks are slowing or stopping the plastic at the stores.  This is good.  Plastic must only be used for an emergency or a necessity.  Reducing your use of credit cards will eventually help your credit score by showing you have less debt to income ratio and you are paying on time, as agreed.

      Do not cancel any of your current cards, even those that you do not or have not used for a long time.  Why?  Because each one has available credit.  When they are all added up, you want more “available” credit than charges.  This ration plays in your favor.

      Save money while awaiting the purchase of a home.  Mortgage banks want “seasoned” money in the bank.  Seasoned means at least on deposit for six months.  If you are borrowing from a family member, do it at least six months before you apply for a loan.

      Having money on hand allows you to make a larger down payment.  The amount of 20% is a great number to figure on to make sure you get the loan.  A veteran does not need money down if going through the VA.  If in Texas, a veteran can use the Texas Veterans Land Board (VLB) and sometime walk away with a 3.something% loan.  Disabilities are counted when using the VLB.

      While you are waiting for the right time to buy and trying to save money, the question is “How?”  Start with the little things most folks overlook.

      Reduce your utility bills by turning off lights and reducing your use of water.  Purchase CFLs instead of regular light bulbs.  Turn off computers, printers, chargers, etc when not in use.  Use power strips on the TV so you can kill the pwoer at night.

      Add a timer to the electric water heater to turn it off from 11 pm to 5 am if your personal work schedule allows.  Why heat water when no one is going to be using it??  If you use gas, cehck the tmepurature to make sure it is not hotter than necessary.  If remodeling, consider an on-demand water heater.

      Install a programmable thermostat for the air conditioner.  No need to cool the home when no one is there.  Also, install ceiling fans and use them when rooms are occupied.

      Wash clothes and run the dryer at night when electrical rates are lower.

      Do you really need a house phone?  Look at what it cost per month/year.  Is this a necessity?

      Close the blinds/curtains during the day to keep sunlight out.  This reduces daytime warming and reduces your energy consumption.

      Make sure you change the a/c filter each month.  Better for your health and your a/c unit.  Have it checked in the spring and fall to ensure it will cool and heat at maximum efficiency.  If you are using a system under 10-12 SEER, you may want to check into getting a newer one to save in the long run.

      When running errands with you car, use the circuit method.  Do more than one errand per trip and do it in a logical route.  This saves energy and time.

       All the little things in life we do add up.  The little things mentioned here add up to.  You will be much better off when it comes time to purchase that new house.

      Call me at (210) 273-9082 with any questions, without obligation.