I already -- you won't extent that we talked about colonials and why some of them may not be making big staff then why that is modestly impacting the real estate recovery. But we've got your answers now while we -- that the path for you if you -- Think divine the next twelve months and you've you've you've listened that you don't want I would be part of the solution not the problem and it jumped in and I my first house -- First were gonna tell you. Makes you understand the the weighty implications of this. What is likely you'll largest investment in making your life -- not jump in we'd rather you sit on the sidelines -- got. The proper savings a great job where you -- know that you can afford this. Home as the long term investment it is. Realistic is not a short investment it's along went five to ten years should be the minimum timeline that you believe you'll owned this property before you seriously consider making an investment. All right Craig we ready we -- okay ready so why did you know that 38%. 38% -- number that's how much cheaper on a national average buying his vs renting. I would say it's it's got to be pretty accurate -- till 23040%. Okay see you're you're twelve months out and guys we cover this about a month ago Maher are -- at. Pretty heavy series on first time home -- a segment on atomic you're twelve months out make sure the timing right so what do the rent vs own calculator identify I think your market. It does make sense if you can find shelter the roof over your head they you can afford it and it's a better deal to. -- -- vs rent or maybe it's to rent or his own but he got to -- in the numbers go to Trulia dot com some great calculators the year we've got some on the website also that. That really wanna give in and punch all the numbers and it's not jester mortgage payment folks. It is just your rent payment. -- utilities that your mortgage payment. Is just one and I'd say it's probably 65%. Of the cost of homeownership -- that makes sense makes complete sense mark all right did your acting gear which means you know make your credit. Run your credit report on that did you get your free copy or you go to mortgage lenders they'll they'll run credit for -- identify what you gotta get cleaned up. Where you need your score to be and I'll tell you what your score to be as high as possible 760 your goals 720 is kind of where you're going to be in. Us a sweet spot of getting the east the standard deal anything below that you're gonna pay a higher interest rates. Mom also on start to do some preliminary search research on what you like what you're looking forward in the house what -- the neighborhood gym like etc. Greg Craig gaining on us whether when I don't add up twelve months out yes she needed -- of -- opinion to build reserves. If ever going to be buying a home your a year out there's no reason why you can't sit down senate budget. And figure how much you can be putting aside each month now if you develop the habit now twelve months from now when you take on the obligation homeownership you continue this pattern. In May be hopefully -- to do more for saving money by buying vs renting currently. You'll be able to add to those reserves reserves of the key folks so. Make she got to play a -- and accuracy to Harman 30400 you're gonna have to save your down payment money up anyway yes he's in an 83 half percent for an FHA loan. 5% or more for conventional loan CNN that. We what you have reserves as well at least six months where your bills. In reserve where that money can't move backwards. Potentially invested in something safe but he can't move backwards so. Work on that. Way out you -- have a budget if you don't have a budget a budget we'll have -- -- -- you're -- don't but John buying a house -- -- -- time. I like that big -- is in the can ally -- he doesn't he he's not lying he does he likes a big budgets are rights. Should he stay or should you go folks don't worry we're gonna get back to the to get you ready to buy your first home -- he -- and take your business near the music play. Our rights. Andrea in Phoenix Arizona asked the following question I had a BA loan with a rate a fourth quarter percent on thirty year loan. I've had my -- for two and a half years I received an offer to refinance at three point 875. But it had about 7500. Dollars in fees average operate that threes but does this offer made sense. Stay stay stay no it does not make sense they're talking about reducing your rate by three eights of a percent. And and you're gonna pay 7500 dollars up front and it can take years to breakeven on that deal. Don't do it you need to have somebody in less transaction honestly for the quarter you're not bad shape -- -- -- -- he can't really she able out of that rate right now. And do without cost or budget fees that's why there's so many fees are charging appoint. Stick with what you've -- for right now but do you find a certified mortgage -- to make sure that you have a bona -- mortgage plan they withdrew over a financial picture they might have some other ideas for. Cano and make sure you understand it when -- advertising there are no special special government tricks that tips it Saturday they can save you thousands of dollars. Then you. Won't that the the wanna sign on without reading the fine print. So are really a special government tips and tricks are religious straightforward refinances however the people use that mislead him. Marketing terminology. Don't usually give a straightforward refinance right big one where you they show you three and seven eights they say here's how much money you're gonna save. You're not really saving them money because -- A bunch of fees and loans just make sure you read the fine print folks and we recommend you read judge was windier scenarios that we can approve it. Or rejected stay or go will give you the truth. -- -- -- Six -- -- for six months out where the some of the things but Americans when you're six months -- was trying to be looking to the lender you wanna start. Well -- well you wanna get your credit score figured consider continuing to look at ways of booster credit score so mark. What's the average credit score nationwide I think it's about 755. There yeah oh yeah -- -- -- -- -- 755 folks it's actually that's not true that's for approved mortgage reckons that's rather -- -- -- national averages -- and that while for people that are approved for market so folks usually seven for your carrier it's pretty solid -- 76 year by the you -- you know you pretty much solid gold some people on average are having a higher credit score in the third inning -- mortgages but. You wanna make sure that you looked that good he was good on paper so you start were were working on boosting your. Credit scores look over the current reports users easy to be cleaned up make you pay your bills on time unity extra diligent. About that and not obtaining a bunch of inquires on your credit while you're in this process -- -- -- -- now six months to work with a mortars and you've already started or a mortgage planners -- we recommend. You started identifying and you know kind of what you like two months ago you start work -- credit for coming got your budget ordered -- Go and start the pre approval process when we come back. Program we're gonna give a little more information -- six months out bringing on down the three months ready to make that offer almost like he's gonna stay tuned. And -- Are -- folks we are back like that you own it. Didn't you ready to buy that first home we talked about what to do it twelve months out where in the -- six months out. With talked about it in this credit scores don't opening new accounts you don't actually have to do you don't close any accounts that you don't necessarily need to close the season and sector scorers. Mark what else. Are you also need to start drilling down on that you've got pre approved now by Europe mortgage lender and you've looked at the numbers make sure you understand not just the PI TI payment that you're standard mortgage -- skinny did you PL ATS while Craig principal. Interest taxes insurance me hate the Red -- links you content. They probably unfortunately. They're probably not gonna cover all the other expenses if there are certified mortgage plan they are. If they're not the product and I talked about the other expenses associated with homeownership. Everything from landscaping to purchasing the washer and dryer the -- the utilities that are now going to be more than you would -- to rent the apartment. All of those things the upkeep and maintenance all of that -- got to count on that. That go to truly or any the other the the body cocked by home calculators. The good ones we'll have all that information and there are so really start. Forecaster future bills what do -- going to be in the new house make she got sufficient savings start shored up -- down payment and the purchase of these things. Now you get closer to three months out Craig from when you wanna buy so now you're contacted a real terror. What -- you Dylan or your your your contacting may be several realtors -- we recommend you interview more than a handful. Or more than one I should say maybe handful be sufficient that's two or three yet to find a personality match number one that you've got to check. Make sure that the credentials are -- not saying that it is less experienced real tree isn't the right fit for you. Who make you do -- really understands the market here -- understand your needs he mapped out what you want you've articulated that this particular realtor. Visit with each real toward that you're going to interview share your wants and needs -- they'd listen well here's a little tip for you. You'll be able to tell the best ones from some little less desirable ones by how well they listen. In can convey back cute their understanding of what you -- particular home interest needs are. What I seal -- a -- is you'll be very specifically looking for an home. And in the shot Kenya over 25 house is they want you that we do to pick out which when you wanna go look at and then having features are very few that you said you're looking for. Make sure you're working with someone -- -- detailed and in efficient in getting this done that's -- that's one big one -- -- -- Another is now you're gonna start you've you've got your down payment you're pretty close on -- is -- three and a half 5% or maybe you've got more -- You're identifying you've identified the financing right here in ego into an FHA loan new conforming loans with 5% down and and or 10% down in -- -- MIC. Picked the option to cut a line that up and now you need to go ahead and start seriously looking at. Making offers on how's she getting ready to now consummate the transactions -- seriously look at now. You're ready to make an offer your fully pre approved. It's subject to you're not changing your job in not messing up your credit and now Europe in the money looking for your -- out to make sure. You stay true to that list you put out what your needs. What are your once what is your budget. And what is your mortgage payment make your budget and your mortgage payments are all one thing it's not I qualify up to X from my mortgage payment no. It's I qualify up to -- In my budget. Understand the difference between those two you can qualify for a lot more mortgage then you can afford believe it or not betray all right so. Now you're ready become -- home minor home owner of a home minor you know out of -- America's you would -- millennial because we know those are all at least eighteen year old right. Yes. Next grammar cranked. Would you think of your retirement -- Why -- or any good some grammar yeah IR Ohio in just knowing we -- -- -- -- essence dissed the data shows on on listings this is an Wall Street Journal couple weeks yelled bomb on not read thin and it. Grammar early. Identified spelling errors and other grammatical red flags and descriptions of homes listed at. At one million and above in 52 metro areas in 2013 and guess what. Those that had no errors or red flags. Ten point 6% of those sold over list price. While those with -- numerous. Errors and red flags guess how many of those sold for over list price. Less than 1%. Bottom line is spokes make sure you're working for favorite -- professional regardless of the listing of your house -- listing price of your house. Sure that if -- put your best foot forward. It's actually your best foot forward. No run on sentence no misspelled words any of those things if it's a high -- house I can tell -- the professionalism associated with proper grammar. Probably impact some people to seriously look at your house yeah I know I've possibly passed over some of assault -- of -- declares a Mike just the way it works on stuff yourself ice do years ago would be you know. Messed with some cars or motorcycles and things -- fix them up and someone -- step and I put together amazing. Ads on the BM and described the car very well it's very well spoken of trees for the enthusiasm for this card -- motorcycle. In -- and I did well with that that you read some of these other ones and it's just so. Bonnie has nothing to get excited about the same thing with your house this is a big big purchase people wanna have something to you know feel like it's right when it's all Gianni depth. Jack it up yeah get a million dollar house yeah all right did you know that nearly half of all home sales. Our all cash deal strength you know I knew that KG said at the opening of the show but before that I wasn't clear on our all cash deals hit a record 43%. Of all sales. During the first three months of 2014 according to realty track. That is up 1% from 19% from a year earlier in the highest level reported since they began tracking in 2011 to jump the student to main factors one is stricter lending standards that make it difficult to get a mortgage. On and two is intense fire competition in many markets were seeing cash buyers they want to hear their offer to be. The most seriously considered one and yes believe -- or not folks if you're cash buyer in -- offering the same amount for the home may be even less. On the people are gonna take you more seriously you've got an opportunity get the home. Now I'm gonna say that another big part of that is going to be the number of institutional investors that's a good chunk of it better. Are putting big money into purchasing homes and turning them into rental properties. That is going to be a lot of cash this coming in of that. I don't have those that data specifically. But it's not that 43% to your friends and neighbors are paying cash -- and rich uncle Michael Jordan. When we're back we'll wrap this up -- -- it's and to score on.