Thursday, April 24, 2014
Top Entrepreneur News

Fri, 25 Apr 2014 05:30:00 -0500

Oral Health company Orabrush shares its strategy behind creating viral online videos.

Fri, 25 Apr 2014 03:15:00 -0500

At no other time have companies been able to learn so much about consumers. They can tap insightful data from mobile devices to provide timely messages.

Fri, 25 Apr 2014 03:00:00 -0500

You don't have to step in the ring, but learning how to control your fighting instincts will help you reach success.

Fri, 25 Apr 2014 02:30:00 -0500

You're not selling products. You are selling experiences. To make that work, connection is everything.

Fri, 25 Apr 2014 02:00:00 -0500

We need to catalyze a national response to declining tech education for young Americans at a time when science, engineering and math are considered uncool.

Fri, 25 Apr 2014 01:55:00 -0500

Mark Pincus's departure from Zynga is a reminder that the skills needed to start a company are very different from those required to successfully manage its growth.

Fri, 25 Apr 2014 01:33:00 -0500

In a deal rumored to be worth just under $10 million, Etsy has acquired Grand St., an online marketplace where indie hardware makers vend cutting-edge tech.

Fri, 25 Apr 2014 01:30:00 -0500

Peruse some fun ideas for developing a brand moniker for a startup that will translate into business fortune.

Fri, 25 Apr 2014 01:11:00 -0500

Facebook appears to be unstoppable as it releases its first-quarter earnings.

Fri, 25 Apr 2014 01:00:00 -0500

Find out the difference between the two roles from someone who has started a venture as his own company as well as worked on startups within firms.

Fri, 25 Apr 2014 00:38:00 -0500

Amazon Prime members can now have big boxes filled with regular-sized household items delivered at a flat rate.

Fri, 25 Apr 2014 00:30:00 -0500

Millennial-proofing your office, like, goes so beyond ping-pong tables and yoga classes.

Fri, 25 Apr 2014 00:00:00 -0500

These lessons learned can help you navigate the audit process.

Thu, 24 Apr 2014 23:30:00 -0500

After your nonprofit is up and running, a strategic plan will help you keep it in business and moving forward.

Thu, 24 Apr 2014 23:29:00 -0500

The new rules would reportedly allow ISPs to charge content providers for a faster, separate pipeline into customers' homes, effectively ending net neutrality.

Thu, 24 Apr 2014 23:01:00 -0500

Fresh off of a $250 million round of funding, the ride-sharing company is venturing into new markets.

Thu, 24 Apr 2014 23:00:00 -0500

The Golden Goose, a kitchen gadget that scrambles raw eggs within their shells, has nearly surpassed its $34,500 Kickstarter goal in one week.

Thu, 24 Apr 2014 23:00:00 -0500

A set of beliefs can guide a young company as it chooses new staff and lays a strong foundation for the future.

Thu, 24 Apr 2014 22:55:00 -0500

On the heels of a disappointing earnings report, McDonald's announced its mascot is getting a new look and joining social media.

Thu, 24 Apr 2014 22:05:00 -0500

KMel Robotics has programmed drones to play musical instruments. Check out their first music video.

Thu, 24 Apr 2014 22:00:00 -0500

Take it from tech expert Veronica Belmont. These tapps can save you time and hassle.

Thu, 24 Apr 2014 21:30:00 -0500

Even with past failures, entrepreneurs often continue to persevere on, looking for their next venture to jump into. For our series The Grind, one entrepreneur opens up about why she isn't ready to throw in the entrepreneurship towel.

Thu, 24 Apr 2014 20:30:00 -0500

Stimulating entrepreneurship means accepting more inequality. Policy intervention needs to understand that.

Thu, 24 Apr 2014 20:00:00 -0500

Creating a logo can be the most critical branding step. Here, we critique and offer insight on the logos from some of the biggest brands.

Thu, 24 Apr 2014 19:30:00 -0500

An advisory board can be essential to a startup's success. But it isn't always easy to get busy professionals to join you team. Here are five tips on getting them to say yes.

Thu, 24 Apr 2014 18:30:00 -0500

After nine years as a stay-at-home mom, Andrea Sammreich reentered the working world as a Pillar to Post Home Inspections franchisee.

Thu, 24 Apr 2014 04:20:00 -0500

After surging during the recession, college enrollment is down as high school graduates appear to be choosing work over school.

Thu, 24 Apr 2014 03:33:00 -0500

Bitcoin core developer Jeff Garzik is taking steps to set up a satellite system that would beam Bitcoin's block chain public ledger down to earth.

Thu, 24 Apr 2014 03:30:00 -0500

How your startup uses language to shape the customer experience says a lot about what it believes in.

Thu, 24 Apr 2014 03:00:00 -0500

Does the New York Knicks president's recent decision to fire the entire coaching staff show that leaders shouldn't be so obsessed with moment-to-moment results?

Thu, 24 Apr 2014 02:35:00 -0500

At the launch of Tribeca Film Festival's Innovation Week, a panel of leaders in NYC talked about what excites them most right now. Answers ranged from a crowdfunded virtual reality headset to a new way to think about our own identities.

Thu, 24 Apr 2014 02:30:00 -0500

A corporate consultant warns about the disastrous effects of overuse of a very common qualifier.

Thu, 24 Apr 2014 02:23:00 -0500

Forget heavy night vision goggles. Scientists are developing a better, lighter way for soldiers to see in the dark.

Thu, 24 Apr 2014 02:00:00 -0500

This setup grants tax advantages while enabling workers to receive valuable stock in the firm when they retire.

Thu, 24 Apr 2014 01:30:00 -0500

For our Ask the Expert column, marketing guru Joanna Lord highlights the top tools she uses for social media.

Thu, 24 Apr 2014 00:48:00 -0500

In 50 years' worth of innovation, much has changed. But in some ways, the more things change, the more they stay the same.

Thu, 24 Apr 2014 00:16:00 -0500

CrowdRise, a for-profit site founded by the 'Fight Club' star that fuses social networking with charitable activism, raised $23 million in its latest fundraising round.

Thu, 24 Apr 2014 00:08:00 -0500

The New York Police Department got a little more than it bargained for on social media when Twitter users hijacked its #myNYPD campaign.

Wed, 23 Apr 2014 23:30:00 -0500

If you wait till the last minute, the public offering will disrupt your business. And if that happens, what's the point?

Wed, 23 Apr 2014 23:05:00 -0500

Analysts expect an unimpressive earnings report from Apple as consumers hold out for the new iPhone 6.

Wed, 23 Apr 2014 22:57:00 -0500

While breakfast has been making headlines, there are other high-stakes areas where U.S. fast-food giants should be focused.

Wed, 23 Apr 2014 22:35:00 -0500

Why? Bay Area rents are too damn high.

Wed, 23 Apr 2014 22:30:00 -0500

Before you can start the hard word of raising money for your mission, there are a few things you need to put in place to help guarantee your nonprofit's success.

Wed, 23 Apr 2014 22:14:00 -0500

While many of us scramble to file on time and avoid penalties, an internal investigation has revealed that IRS workers who owed back taxes were actually given bonuses.

Wed, 23 Apr 2014 22:00:00 -0500

Our expert explains you must be compelling to be remembered.

Wed, 23 Apr 2014 22:00:00 -0500

Early-stage startups don't need a PR firm to get press. Instead, they need to roll up their sleeves, do the work and execute.

Wed, 23 Apr 2014 21:30:00 -0500

If you're seeking employees with intense focus and attention to detail, consider a candidate with autism.

Wed, 23 Apr 2014 21:00:00 -0500

Providing incentives and learning to listen can help managers maximize a crowdsourced workforce.

Wed, 23 Apr 2014 20:30:00 -0500

As a founder, you are going to see your fair share of twists and turns, with some making you want to throw in the towel. Here are seven books to read when you are feeling discouraged and need to feel inspired.

Wed, 23 Apr 2014 20:15:00 -0500

The security feature on Samsung’s new Galaxy S5 was tricked. Here's how.

Wed, 23 Apr 2014 19:30:00 -0500

When asked about the future of wearable technology, tech enthusiast Veronica Belmont says she is more excited about 'embeddable' tech. Here's why.

Wed, 23 Apr 2014 19:00:00 -0500

In order to succeed in business you need to anticipate what your market will want or need before it’s completely obvious to all. Here's how.

Wed, 23 Apr 2014 18:00:00 -0500

No matter how smart you are or how great you startup idea is, one big investor says the elevator-style pitch doesn't work. Here's why.

Wed, 23 Apr 2014 17:30:00 -0500

This Scottish Razzamataz Theatre Schools franchisee used franchising to get into business young while learning from an organization's experience.

Wed, 23 Apr 2014 03:37:00 -0500

Running your own business is stressful, tiring and risky. So, why bother? A new survey reveals some surprising insights.

Wed, 23 Apr 2014 03:15:00 -0500

Did the mistake lie not with a faulty part but rather with how the entire company dealt with problems?

Wed, 23 Apr 2014 02:35:00 -0500

Cognitive, artificial intelligence is moving into e-commerce.

Wed, 23 Apr 2014 02:32:00 -0500

Consumers must opt into the advertising initiative that adds weekly events to their electronic calendars via Apple, Microsoft, Google and Yahoo.

Wed, 23 Apr 2014 02:28:00 -0500

A newly published paper says geo-tagged tweets can assist in the prediction of crime.

Wed, 23 Apr 2014 01:30:00 -0500

Before you get too carried away with excitement, it’s important to slow down, take a deep breath and make sure that you’re actually ready to launch.

Wed, 23 Apr 2014 01:00:00 -0500

Explore these six ways to generate money from individuals and groups in order to make your non-profit organization a success.

Wed, 23 Apr 2014 00:55:00 -0500

New York-based startup Casper is looking to bring some transparency -- as well as vertical integration -- to the $13 billion mattress industry.

Wed, 23 Apr 2014 00:30:00 -0500

For those just jumping on the social-media bandwagon, here are a few tips on getting started.

Wed, 23 Apr 2014 00:00:00 -0500

When it comes to leadership, different employees take to different approaches. Having a cookie-cutter strategy can lead to disaster and in this case, losing top talent.

Tue, 22 Apr 2014 23:41:00 -0500

The program, which could earn customers store credit, is part of a larger environmental stewardship campaign.

Tue, 22 Apr 2014 23:30:00 -0500

In this video, tech expert Veronica Belmont shares some important business takeaways from the world of gaming.

Tue, 22 Apr 2014 23:20:00 -0500

When Netflix raised its subscription prices two years ago, users rebelled. This time, the company is doing it differently.

Tue, 22 Apr 2014 23:08:00 -0500

In a quarter that saw fast-food breakfast wars and the polar vortex, here's how McDonald's is measuring up to the competition.

Tue, 22 Apr 2014 22:30:00 -0500

If entrepreneurs raise a round of capital the more than likely will face the angst-inducing conundrum of determining board structure. Here are a few pointers.

Tue, 22 Apr 2014 22:18:00 -0500

The controversial streaming TV startup has battled broadcast goliaths before -- and won both times. Will it prevail again? Either way, Aereo's fate could forever change the way we watch TV.

Tue, 22 Apr 2014 22:00:00 -0500

You might not have heard of this company before. But that might soon change. It’s using guerilla-style marketing to aggressively get the word out about its forthcoming Android-based smartphone.

Tue, 22 Apr 2014 21:56:00 -0500

Looking to bolster your LinkedIn profile? You can now add photos from your phone.

Tue, 22 Apr 2014 21:55:00 -0500

As the SEC works on final regulations for equity-based crowdfunding, one of the pervasive fears has been that non-professional investors will be swindled by fraudsters. But is there really reason to worry?

Tue, 22 Apr 2014 21:00:00 -0500

Fail. Hope. Repeat. How a few simple steps can help you spring back if your startup fails.

Tue, 22 Apr 2014 20:00:00 -0500

Make sure your business capitalizes as users start to check out on Fridays.

Tue, 22 Apr 2014 19:54:00 -0500

Tony Lutfi started his career in franchising as a cook at Jack in the Box. Now he owns 21 restaurants – plus five other brands.

Tue, 22 Apr 2014 19:30:00 -0500

A subtle but important trait of the most successful entrepreneurs is the ability to manage uncertainty and strategically problem solve.

Tue, 22 Apr 2014 19:00:00 -0500

The root of behavior change and building better habits is your identity. If you change the type of person that you believe that you are, then it’s easier to change your actions.

Tue, 22 Apr 2014 18:30:00 -0500

If you want to success in business, a daily workout should be considered a must.

Tue, 22 Apr 2014 04:42:00 -0500

Shucks. 'Streetlamp of-the-sea' didn’t make the final cut. What did? We know you're dying to know the lucky newby's winning web name, so come find out.

Tue, 22 Apr 2014 04:38:00 -0500

Tom Preston-Werner's departure comes a month after an employee publicly stated that she was harassed by members of GitHub's leadership team.

Tue, 22 Apr 2014 04:12:00 -0500

Get ready to see more photos that are relevant to your interests.

Tue, 22 Apr 2014 03:30:00 -0500

Competition for all-star sales reps has never been fiercer. Adopt a winning strategy to build your team.

Tue, 22 Apr 2014 02:30:00 -0500

There's a reason why kids eat their vegetables, and you can apply it to business.

Tue, 22 Apr 2014 02:00:00 -0500

Decide that you desire to achieve your goals (and build a startup) more than you're afraid of the obstacles.

Tue, 22 Apr 2014 01:45:00 -0500

The sportswear company is shifting its focus from hardware to software.

Tue, 22 Apr 2014 01:30:00 -0500

There is no magic equation between taking control and leaving it up to a higher presence.

Tue, 22 Apr 2014 01:00:00 -0500

From 'You've Got Mail' to 'Office Space,' modern technology would have altered -- if not outright killed -- the plot of these films.

Tue, 22 Apr 2014 01:00:00 -0500

Why reinvent the wheel when you can take what’s worked for others and apply those principles directly to your business?

Tue, 22 Apr 2014 00:38:00 -0500

E-reader company Oyster has released a classic business best seller in a new pulsating format created by startup Spritz.

Tue, 22 Apr 2014 00:30:00 -0500

Access to capital can pose a challenge ot many a new business. Make sure you obtain financing from legitimate sources.

Tue, 22 Apr 2014 00:23:00 -0500

You've got to bring in the money if you want to achieve your mission. Here are five financial sources you should consider.

Mon, 21 Apr 2014 23:59:00 -0500

Bowing to customer outrage, the food giant has done an about-face on its terms of service.

Mon, 21 Apr 2014 23:30:00 -0500

In this video, tech expert Veronica Belmont discusses the one thing business owners need to do better when it comes to technology.

Mon, 21 Apr 2014 23:07:00 -0500

Silicon Valley's biggest tech rivals are seriously upping their game in the mobile gaming battle. Here's how.

Mon, 21 Apr 2014 22:30:00 -0500

The first hires for any startup are the most important. Here's what to look for.

Mon, 21 Apr 2014 22:26:00 -0500

The billionaire has announced plans for a 240-room hotel in trendy Nashville, Tenn., following additional slated properties in Chicago and New York.

Mon, 21 Apr 2014 22:07:00 -0500

You may be able to order pouches of powdered vodka, Cosmopolitans and 'Powderitas' as soon as this fall.

Mon, 21 Apr 2014 22:00:00 -0500

The popular Entrepreneur.com contributor will talk about confidence, founding a startup around your passion and growing that business so that you can live the type of life you've always wanted.

Mon, 21 Apr 2014 21:45:00 -0500

Hate writing? You're not alone. Here are top tips from writing professionals on how to break through the paralysis and start to put words on the page.

Thu, 24 Apr 2014 18:50:00 -0500

The iPhone 6 will be just a little smaller than the just-released Samsung Galaxy S5, and virtually identical to the Nexus 5, but thinner. This is the conclusion of Toronto-based mobile device expert Lewis Hilsenteger of Unbox Therapy, based on a prototype of a case for the forthcoming iPhone 6 procured by the leak-o-sphere's Australian prodigy, Sonny Dickson. In a video released yesterday (see end of this post), Hilsenteger does a Goldilocks comparison of a mockup of the iPhone 6 inside the leaked case and the current iPhone 5s (too small), the Galaxy Note 3 (too big) and the Nexus 5 (just right!).

Thu, 24 Apr 2014 17:46:00 -0500

Google Glass was introduced without a clear explanation of what it was supposed to be used for. When promotional videos started to show people going about their daily routine, it quickly became clear that what we were being sold wasn't a gadget, it was a lifestyle. The actual product was the intoxicating prospect of instant access to information. Glass offered to be much more than a device, it was a ticket into an exclusive club that promised special abilities.

Thu, 24 Apr 2014 16:06:00 -0500

Stop me if you’ve heard this before.

Thu, 24 Apr 2014 15:34:00 -0500

Walking through an airport terminal recently, I saw a man in a business suit stop a young soldier with two rows of campaign ribbons on his uniform to thank him for his service and shake his hand. We’ve all witnessed such scenes before, but this time I was struck by the fact that our young veterans today need more than a handshake, they need a hand.

Thu, 24 Apr 2014 14:07:00 -0500

As we all know, the release Heaven Is For Real somewhat surprised the industry last weekend with a robust $22.5 million Fri-Sun debut, and a $29.5 million five-day total. Looking at the slate of upcoming films, as well as the relative strength of the holdovers, it is somewhat possible that the religious-themed drama will end its second weekend in the top spot. Now while rank itself is of course an arbitrary concept, the notion gives way to a bit of mathematical speculation. What follows is an academic exercise as well as a weekend box office preview. At the very least, it gives me a chance to write about the new films this weekend prior to the respective debuts. Let's dive in.

Thu, 24 Apr 2014 07:04:00 -0500

If you’re interviewing with a company that is in the least bit reputable, that hiring manager is going to your name.  Now, unless your name is Marie Smith, the good news is that you can indirectly communicate with them via the web and ace your interview before you even walk in the door.

Wed, 23 Apr 2014 15:33:00 -0500

Many hockey fans feared that last year's lockout-shortened NHL season might put a damper on the sport's growing popularity in the United States. Those fears appear to have been unfounded as hockey viewership is up big this year, but even with that success the NHL is still way behind the NBA in terms of postseason viewership.

Tue, 22 Apr 2014 18:33:00 -0500

The unemployment rate among veterans who have served on active duty since 2001 fell to 9% in 2013, according to data released last month by the Bureau of Labor Statistics, while the jobless rate among all veterans dropped to 6.6%.

Tue, 22 Apr 2014 18:06:00 -0500

“It is impossible to overlook the extent to which civilization is built upon a renunciation of instinct,” Sigmund Freud said.

Sun, 20 Apr 2014 13:41:00 -0500

Ten days ago, the federal government released a huge data set detailing how it spent $77 billion in Medicare funds in 2012 to over 880,000 health care providers. The release of this data is part of a new transparency effort by the government, which many of us applaud.

Latest News & Information

Current Articles | Archives | Search

5 Chaldean Home Buying Power Tips
By Salam Abbo :: Wednesday, March 14, 2007 :: 9569 Views :: Article Rating :: Business & Finance

Michigan, USA - It is a seller’s market in many Chaldean concentrated states.    While the economy is doing great in states like Illinois, Nevada, Arizona, and California, Michigan’s economy continues to free-fall.  In Michigan the real estate opportunities are far and wide as the buyer market continues to heat up as homes are foreclosed, residents move out of the state, and businesses close.  Chaldeans can seize on the opportunity of depressed Michigan economy by finding and securing an undervalued piece of property. 

There are many advantages of becoming a home owner.  This includes the appreciation, tax benefits, a higher quality lifestyle, a more stable family life, and obviously the investment.

Chaldeans are able to better prepare themselves when planning to purchase a home.  For such occasions consider these 5 Chaldean home buying power tips.

1.  Understand your Debt-to-Income Ratio
When a lending company determines a Chaldeans’ ability to qualify for a mortgage, a lender looks at what is called the "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees, college loans, and other forms of debt or recurring expenses. It will also include your monthly consumer debt, including credit cards, installment debt, and car payments.

For example, suppose you earn $5000 a month and you have a car payment of $400. Using an interest rate of 8.0%, you would qualify for approximately $55,000 less than if you did not have the car payment.

In short the debt-to-income ratio affects your buying power.  Your debt to income ratio is a simple way of showing what percentage of your income is available for a mortgage payment after all other debts are met. The ratio is one of the key things a lender considers before approving your home loan.
Conventional loans are sometimes expressed as debt limits like the 28/36 qualifying ratio. Those numbers refer to two percentages that are used to examine two factors of your debt load.

The 28% Number: (PITI)

This number indicates the maximum percentage of your monthly gross income that the lender will allow for housing expenses. The amount will include payments on the loan principal and interest, private mortgage insurance, hazard insurance, property taxes, and homeowner's association dues.

The 36% Number:

This number is for the recurring debt.  This is the maximum percentage of your monthly gross income that the lender will allow for housing expenses.  Recurring debt includes credit card payments, child support, car loans, and other obligations that will not be paid off within a relatively short period of time (6-10 months).

Doing the Math:

Yearly Gross Income = $45,000 / Divided by 12 = $3,750 per month income

$3,750 Monthly Income x .28 = $1,050 allowed for housing expense

$3,750 Monthly Income x .36 = $1,350 allowed for housing expense plus recurring debt.

Chaldeans should keep in mind that not all loans are the same.  For example, the FHA loan ratios are typically 29/41, allowing a higher debt load for both housing expenses and recurring debt.  This translates into FHA allowing $1087 for housing and $1538 for housing plus recurring debt.  For a VA loan, the debt to income ratio should not exceed 41% of your monthly gross income.

2.  No Major Purchase of Any Kind
Even if you feel you can afford a major purchase like a new car, the car payment will impact your ability to purchase a higher valued home.  Remember mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender.

However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being.

3.  Don’t Move Money Around
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.

The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer.

Oh…don’t change banks, either.

4.  Changing Jobs May Affect Home Buying Power
For most people, changing employers will not really affect your ability to qualify for a mortgage loan. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.

Salaried Employees
If you are a salaried employee who does not earn additional income from commissions, bonuses, or over-time, switching employers should not create a problem. Just make sure to remain in the same line of work.  Hopefully, you will be earning a higher salary, which will help you better qualify for a mortgage.

Hourly Employees
If your income is based on hourly wages and you work a straight forty hours a week without over-time, changing jobs should not create any problems.

Commissioned Employees
If a substantial portion of your income is derived from commissions, you should not change jobs before buying a home. This has to do with how mortgage lenders calculate your income. They average your commissions over the last two years.

Changing employers creates an uncertainty about your future earnings from commissions. There is no track record from which to produce an average. Even if you are selling the same type of product with essentially the same commission structure, the underwriter cannot be certain that past earnings will accurately reflect future earnings.

Changing jobs would negatively impact your ability to buy a home.

Bonuses
If a substantial portion of your income on the new job will come from bonuses, you may want to consider delaying an employment change. Mortgage lenders will rarely consider future bonuses as income unless you have been on the same job for two years and have a track record of receiving those bonuses. Then they will average your bonuses over the last two years in calculating your income.

Changing employers means that you do not have the two-year track record necessary to count bonuses as income.

Part-Time Employees
If you earn an hourly income but rarely work forty hours a week, you should not change jobs. There would be no way to tell how many hours you will work each week on the new job, so no way to accurately calculate your income. If you remain on the old job, the lender can just average your earnings.

Over-Time
Since all employers award overtime hours differently, your overtime income cannot be determined if you change jobs. If you stay on your present job, your lender will give you credit for overtime income. They will determine your overtime earnings over the last two years, then calculate a monthly average.

Self-Employment
If you are considering a change to self-employment before buying a new home, don’t do it. Buy the home first.

Lenders like to see a two-year track record of self-employment income when approving a loan. Plus, self-employed individuals tend to include a lot of expenses on the Schedule C of their tax returns, especially in the early years of self-employment. While this minimizes your tax obligation to the IRS, it also minimizes your income to qualify for a home loan.

If you are considering changing your business from a sole proprietorship to a partnership or corporation, you should also delay that until you purchase your new home.

5. Delay Buying a Home in Certain Circumstances
Assuming you have the financial resources and the desire to eventually own your own home, there are very few good reasons to put off the purchase. You can miss out on years of appreciation if you do.

The main thing you want to avoid when buying a home is being put in a position where you will have to sell it too soon. If you have to sell a home before it has appreciated enough to cover the costs and commissions of selling, you could find yourself in a financial bind. This is especially true for those who buy a home with a down payment of ten percent or less.

Real Estate commissions traditionally run around six percent of a home’s sales price. The seller’s closing costs generally come to about one and a half percent. You can see how this can easily exceed the first year’s appreciation. If you made a minimal down payment, you could actually have to come up with cash out of pocket to sell your home.

New to the Area
Chaldeans are becoming more mobile and moving from one state to another.  Especially in Michigan where the economy has become deplorable and with governor Granholm talking about raising taxes the state can expect harsher economic conditions.  

Before moving into a new state you might want to get as much information as possible.  If it is another strongly concentrated Chaldean state you might want to contact the nearby church and speak with members of the parish council to get some insight. 

It makes sense to rent for a number of months before deciding on exactly where you want to live.  Taking out an ad in the church newsletter or contacting a realtor in the area to help identify a rental option before purchasing a new home is always a very smart move.  

Uncertain Job Future
You could be right out of college or expecting a promotion and a transfer. Or your company has announced an impending "restructuring." If any of these apply, it might be best to wait to buy a home. When you have a more accurate picture of what your next few years will be like, that will be the time to buy.

Marital Problems
Real estate agents see a lot of life unfold before their eyes. One of the saddest occurs when former clients divorce and are forced to sell a recently purchased house. It happens all too often when a family in turmoil decides that buying a new home may help resolve their problems. Perhaps it is inevitable that such problems occur, but selling a home before it appreciates can create an additional financial burden in an already difficult situation.

 


 

 Salam Abbo is a Century 21 realtor, who has achieved the prestigious 10 million dollar sales club.  The sales club honors realtors who have demonstrated leadership in real estate measured by their sales.  Mr. Abbo lives and works in Michigan with real-estate partnerships in Chicago, Phoenix, and San Diego.  Mr. Abbo has been married for over 25 years and has three college educated children.