Buying a home is an expensive proposition, regardless of your financial situation, so we want to give you a few pointers to keep in mind when buying your next home.

Your first step is to save for the down payment. The more money you are able to put down, the greater your chances of being able to negotiate a lower price for your home. Also, you’ll be able to save more on your mortgage.

A good rule of thumb when purchasing a home is to have at least 20% of the total value (if not more) for your down payment. You’ll also need some extra funds for the closing of the house.

Start saving now, don’t procrastinate. Put the money you are saving for a home aside so you don't spend it, by putting it in a savings account. Try to find a bank with a good compound interest rate for it’s saving accounts so while that money is being stowed away and saved, you are earning a little interest on it as well.

If your salary is not enough to save up for the house, consider the possibility of a second job. That salary, a long with the 20% you are saving will be a big help financially when getting ready to buy the house.

Remember, even while you are saving, you need to also keep up with bills you already have. Staying financially stable while saving for your house is important, as it will have a major impact on your credit score, and eventually your mortgage approval or not.

With these simple steps, you will be on your way to buying the house of your dreams.

Our September 2010 Orange County California Real Estate Newsletter is now online…

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Here are four inexpensive ways to keep your yard mosquito free during these "dog days of summer."

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Home ownership is a big step, and many people worry whether they're ready to take it on. If you currently rent your house, you may wonder if you can even afford to buy a home. Just looking at real estate listings online or in the Sunday paper can make you break out in a cold sweat. Yes, homes are expensive. But they should be considered an investment, and for many homeowners, it's one of the smartest investments they'll make. Depending on how much you currently pay for rent, how expensive homes are in your area, what your credit score looks like, and how long you plan to live in the house (among other factors), buying a home is often less expensive than renting in the long run. After all, when you rent, you just pay for a roof over your head. When you buy, you become the owner of that roof and everything beneath it.

Renting does have its advantages. Here are some:

• Renting offers more flexibility. If you like knowing you can pack up and move at a moment's (or a month's) notice, it may make more sense to rent. Depending on the terms of your lease, you're not tied to a residence for more than a year or two at most. When you own a home, on the other hand, you need to sell the property or find a suitable tenant before you can move—or else you'll end up paying a mortgage on an empty house.

Tip: If you know you're likely to move within three or four years, you're probably better off renting than buying. That's because you won't have time to build up much equity in your house (its cash value as you pay off your mortgage's principal) or break even on your closing costs.

• Maintenance is someone else's headache. When you rent, you call the landlord if a pipe bursts or the furnace quits. He sends someone to fix it and takes care of the bill. When you own, all the maintenance — from keeping everything in good repair to mowing the lawn and shoveling snow —- is your responsibility.

• You can move in faster. Buying a house takes time. If you're in a hurry to move to a new neighborhood, you might want to rent for a year and look for a place to buy during that time. Renters can usually move in soon after getting their rental application approved. Buying a home, on the other hand, takes months. You'll be living in your new house for years, so you want to take your time finding just the right home. Then you may spend a couple of weeks negotiating with the seller before you agree on a price and conditions. And getting financing and preparing for the property transfer can take 30 days or longer.

• Your move-in costs are lower. Renting a house usually involves no more up-front costs than two months' rent and a security deposit. Buying a home is far more expensive. You need a down payment of anywhere from 3.5 to 20 percent—or more—of the home's purchase price and thousands of dollars more for the fees and costs associated with getting a mortgage.

• You can keep your money in the bank. Being a first-time homeowner frequently means scraping together all the money you can find to afford a down payment and closing costs. Once you buy a house, your money is tied up in your home. After you built up some equity (cash value in the house as you make principal payments), you can tap into it with a home equity line of credit. But if you want your money readily available (especially within the next few years), or if you want to invest in something other than real estate, it may make more sense for you to rent.

If you're thinking about buying a home, you're already aware that buying has its own advantages. Here are some major ones:

• Say goodbye to your landlord. It irks some people to pay good money each month and not get anything more in return than the right to live under someone else's roof. When you own your home, each mortgage payment builds up your equity in the house that increases with time. Some landlords are great, but others are slow to make repairs—and quick to raise the rent. If you want to feel like your home is your own, you might be ready to buy.

• Take advantage of tax breaks. You can deduct mortgage interest, property taxes, and some closing costs from your federal income taxes.

• Beat inflation. As the cost of living goes up, the cost of rent goes right up with it. If you use a fixed-rate mortgage to buy a home, however, your principal and interest payments stay the same for as long as you live in the home. The longer you stay there, the more pronounced this benefit.

• Build equity. Renting is pay-as-you-go; as long as you pay your rent and abide by the terms of your lease, you can live in your home. But if you buy, as you make mortgage payments and as home values rise, you gain equity in your home. You can treat your home's equity like a savings account, cashing out when you sell the home and using the money for a down payment on your next home. Or you can borrow against it using a home equity line of credit.

• Have your own place. For many people, the main reason to buy a home is to have a place that's truly their own. You're not paying off the landlord's mortgage—you're investing in a home with your name on the deed. That's a great feeling, whether you buy a one-bedroom manufactured home or a many-roomed mansion.

Wondering whether renting or buying is best for you? Contact us and we'll discuss your options with no obligation on your part.

Decks and patios not only provide a space for outdoor entertaining, they can also increase your home’s curb or external appeal.  But before you start construction, spend some time thinking about what you're looking for in an outdoor space. The wrong deck or patio can become unused space and an eyesore. The good news is, there are plenty of options with decks and patios that are sure to satisfy anyone’s vision of their perfect outdoor retreat.

Start by thinking about how you’ll want to use the space. Be realistic with your size expectations as well as your budget. Don’t forget to consider the maintenance requirements as well. Wood is the most common material choice for decks, however wood also requires a lot of maintenance. Wood decks should be inspected for loose boards, protruding nails and splinters and they need to be cleaned, sanded and refinished regularly (sometimes as often as once a year).

In general, decks are more affordable than patios, and concrete is often the most durable option and requires the least amount of maintenance. If you like the look of a wood deck, another option is called “alternative decking”, which is composite “wood” made of wood, plastic or aluminum that could be blended with recycled wood fiber, sawdust, plastic or fiberglass. This option better resists the effects of weather, but that doesn’t mean it’s totally maintenance free. You’ll still need to power wash your deck and keep an eye out for any needed repairs.

Patios and terraces are other popular options for outdoor spaces. Patios provide a great place for family barbecues and backyard parties. There are several surface options to choose from: stone, slate, brick, gravel and concrete, just to name a few. Having several options allows you to customize your space exactly to your liking.

A well constructed outdoor space can increase the value and appearance of your home. Once you’ve completed your retreat, be sure to make the most of it by spending lots of time in your outdoor space!