Did you know that your knowledge about home financing can mean the difference between making and losing tens of thousands of dollars?

If you’re like most people, home financing…with all its hidden costs and games…can be a daunting and confusing event. And for about 80% of people out there, borrowing $100,000…$200,000…or even $500,000 or more is the largest financial transaction you will incur in your life.

Small mistakes can leverage themselves into big losses of money. That’s why you need to be armed to the teeth, not only with helpful knowledge, but with proven, helpful strategies and questions that will get you the very best mortgage for your situation for the absolute lowest cost available in the market.

And that’s why I created this report…to give you a number of helpful, straightforward tips for avoiding costly mistakes and getting the very best financing for your dollar.

Here are seven strategies (I call them “secrets” because so many home buyers disregard them when buying a home) you should consider when financing your home:

Secret #1: Clearly Understand How Much Financing You Can Afford

Like it or not, there are two guidelines bankers and mortgage lenders use to determine how much loan you can afford.

The first guideline is the Payment To Income Ratio. This guideline compares your income – or your total household income – to the amount of mortgage payment you’re considering.

To calculate the “payment” part of the formula, the lender will take the mortgage payment (principal + interest) and add to it Property Taxes and Insurance. Hence the term “PITI” (principal, interest, taxes, and insurance).

Usually lenders will loan up to 28% of your total household income.

But before you think you’re home free, there’s something else you need to know…

It’s called the Debt To Income Ratio. Debt refers to ALL the major monthly payments other than your mortgage payment (PITI). To arrive at this amount, the lender will consider…

Your car payment.
Your credit card debt and payments.
Any IRS liens or payments due.
Any other payments and debts you have (boat, second home, etc.)

Then, they’ll compare your total debt to your ability to make current payments with your new home loan added into the equation.

Now, here’s the “catch.” Each mortgage company sets different limits on your Debt To Income ratio, which is why it’s critically important to find a MOTIVATED LENDER!

Don’t follow the “canned” financial advice like you see on TV. Most of that advice is “rule of thumb,” and designed for the lowest credit rating and highest interest rates.

Think about this…

If you spend two or three days to find a loan that saves you $40,000 to $150,000 or more over its term, your time is WELL WORTH SPENT! Doing a little homework on your own will literally save you thousands over the term of your loan.

For the other 5 secrets email us at Homes@paulConti.com or call 408-691-7700

FORECLOSURE ALERT: As our foreclosure students know, there is a pathetic Civil Code Section 1695 that affects foreclosure sales in California. If a real estate agent has an investor client interested in a one - four owner-occupied property that has a Notice of Default filed, there are many problems. First, the owner must be given a written five-business day right to cancel and be told in 12-point type that no documents can be signed during that period. The written contract for sale must be very complete in 10-point type and be in the language in which the sale was negotiated. Even if you follow all the rules the sale can be rescinded up to two years from date of recording if unconscionable advantage had been taken of the seller. Finally, the agent must show written proof to the seller of a valid real estate license plus the agent must make a written statement that he or she has a bond equal to twice the value of the property.

Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?

A professional appraiser's opinion of a property's market value is based on the recent sales of similar homes in the neighborhood, and on the square footage and condition of the property. Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

An alternative to a professional appraisal is to ask a professional real estate agent for a written market analysis of your property. This analysis will include information about recent home sales in your neighborhood, as well as how those homes compare to yours. Real estate agents may provide this service with no charge or obligation. If you are still unsure of the value of your home, you may wish to pay for an appraisal.

The market is not hot. But buyers are waiting for the cold market. Let me say that the cold market is not here or coming. Now is the time to buy. Sellers are opposite from the buyers. They want more and the buyers want less. The gap is large and so the market is flat. The best thing I can offer is that there are peolpe who watch things happen and some wait for things to happen. I will only work with people who make things happen. If your buying get to it. I will show you how to make things happen. And is your a seller. We can make things happen. I have been here before. Let our 30 years of experience work for you. http://www.paulandgloriaconti.com

The trade deficit for November declined by 1% to $58.2 billion, the lowest level since July 2005, the Commerce Department said January 10. Despite the improvement, the total 2006 trade deficit is on pace to reach $765.4 billion (December's trade numbers must still be tallied), compared to $716.7 billion in 2005.

Led by robust holiday shopping, retail sales increased 0.9% in December, the strongest showing since a 1.4% increase in July. For 2006, retail sales rose by 6%, a solid showing, but down from a 6.9% increase in 2005.

Despite improving retail sales, U.S. wholesale inventories leapt by 1.3% in November, triple the 0.4% rate of increase predicted by analysts. A broad-based accumulation of stockpiles ranging from cars to farm products to petroleum helped fuel the increase.

Following a dip in interest rates for the first time in five weeks, U.S. mortgage applications soared 16.6% in the first week of the new year (through January 5), the Mortgage Bankers Association (MBA) reported January 10. The MBA's survey covers approximately 50% of all U.S. residential loans.

The number of newly laid-off workers filing unemployment claims fell by 26,000 to 299,000 for the week ending January 5, the Labor Department said January 10. It marked the first time jobless claims had fallen below 300,000 since the week of July 22.

This week look for updates on the Producer Price Index on January 17 and the Consumer Price Index on January 18.