By Bill Wehr

With mortgage rates still low, and a number of flexible loan programs available, it has never been easier to buy your first home. You have some money saved, and being pre-qualified by a lender, you feel you are ready to find that dream home. But you need to set time aside to review your household budget to see the real financial impact of home ownership before you shop. By doing this you will have a much easier transition to home ownership and at the same time get a handle on the amount it costs you to live each month.

When you are pre-qualified for a mortgage loan by a lender there are key debt to income factors that are taken into account. First your gross qualifying income is calculated. This is your paycheck before anything is taken out for federal tax, state tax, and SSI. You may have additional deductions for group health or retirement contribution. What you have left over is what is generally termed as “take home pay.” This is the amount that needs to be looked at closely to get a realistic consideration as to how much you are willing to pay each month for a house payment.

The second factor that the lender takes into consideration is your monthly debt. But the debt that is counted is mostly restricted to what the new mortgage payment will be which includes property taxes and homeowners insurance, installment loans, revolving charge cards and child support or alimony that currently appear on the credit bureau. This gives the lender a debt to income ratio in which to determine if the buyer qualifies for a particular loan program. There are other aspects that will decide whether the loan is ultimately granted. What we are looking at here is the debt to income consideration only.

So this leaves it up to you to take the extra step in really figuring what it will mean to you to own a home with the take home pay you have. What you are looking at is not only the increase from rent payment to mortgage payment, but also the increase in such things as utilities, cable and garbage service. These may be included in your rent and completely overlooked.

You can make your own personal list and break it down as follows:

· House payment- it is the full amount of principle, interest, taxes, homeowner’s insurance & if any mortgage insurance. If you were given the choice of paying your own taxes & insurance instead of the lender collecting the payment then plan to put 1/12 of the amounts away each month to meet the billings when they are due.
· Utilities- Gas, electric, water, garbage and cable. Several of these can have wide swings month-to-month depending on seasonal usage. The utility companies have plans where you can pay a level monthly payment thereby having control of these particular expenses.
· Household expenses- Food, household items, clothes are ongoing outlays. Look at your checks and receipts for the last 12 months and come up with an average monthly amount spent for each of these items.
· Charge cards, car loans, other installment loans, medical & dental bills- make sure that if you are only paying the minimum it is only for the purpose of budgeting for a home otherwise eliminate as much as possible.
· Car expense- Average the gas & repairs on the vehicles for the last 12 months. Car insurance is another expense that can be prorated over 12 months rather than a large lump sum each year.
· Other expenses- these are the ones you may totally eliminate, but do you really want to? These are the fun things to do like eating out, movies, recreation, hobbies and vacations that round out your life. You want to feel good about owning your home and not feel trapped in it watching television as your only source of entertainment.

It is very likely that as a first time homebuyer that your housing expense will go up noticeably from what you were used to with renting. Don’t let it overwhelm you. By taking the time to see where your money goes you get a realistic perspective on what you can afford. If homeownership appears out of range then perhaps cutting back some expenses, or if possible totally eliminating some, will get you into that first home.

About the Author:
Bill Wehr publishes mortgage articles at http://www.mortgagejourney.com. Bill has an MBA and is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com serving Oregon and Washington. For loans please complete a secure on-line application at http://www.portlandoregonmortgages.com.

By Mark Nash

Many home buyers judge a book by its cover, a sometimes costly mistake. It’s easy to be infatuated with a cutting-edge kitchen or drop-dead views in home that you want to buy. Don’t skip having a property inspection on your dream home. Most home inspectors are licensed or certified today, but they can only report what they see. Sometimes materials defects or red flags are hidden behind walls, soil surrounding foundations or buried in sewer lines. Know what the red flags are and what they mean in additional costs or if they are not easily corrected. Mark Nash author of 1001 Tips for Buying and Selling a Home offers homebuyers tips on real estate red flags for homebuyers.

-In homes more than twenty years old have the sewer line inspected from the house to the street. The latest in technology offers you the piece of mind that you won’t be digging up the front yard to replace the main sewer line because of mature tree roots invading and clogging or breaking it up. Sewer or plumbing companies can send a camera through the sewer line and provide you with a video tape of what they discover. If it’s clean you can relax and if there is a problem, you can show the property owner.

-Cracked heat exchangers on furnaces indicate that it’s a health issue and time for a new furnace. Home builders, owners and developers can put in lower-quality and under-sized furnaces that can have prematurely cracked or damaged heat exchangers. If your home inspector finds one, you better plan on replacing the furnace. From a safety standpoint cracked heat exchangers emit dangerous gases into a home.

-Under-sized or antiquated electrical systems. Many homebuyers need to learn about home electrical systems and what composes an adequate one. If a home you look at has knob and tube wiring, forget about getting homeowners insurance, move on. Look for circuit beakers in electric panels and if you see fuses in a home electrical box, plan on updating the panel. Depending on the size of a home and power requirements the electrical service should be at least 100 or 200 amps. If a property advertises a new electric service verify that in addition to the main electrical panel being updated that the electric service from the house to the transformer has also been upgraded, a common oversight.

-Fogged or non-operative windows. I’ve seen many defective windows in homes that have built in the last ten years. Many people skimp on windows and these are easy to spot. Water condensation fogs the space between double-layered windows. Newer inexpensive windows sometimes don’t operate properly after minimal use. Metal framed windows transfer more heat and cold than wood frame windows. Many defective or obsolete windows can be cumbersome and expensive to replace. Older homes might have single-paned double hung windows that are painted shut, have warped closed or have faulty counter-weight systems.

-Leaky or end-of-useful-life roofs. If a home you are interested in has three layers of shingles and needs to be replaced, you will first have to have all the existing shingles torn off before a new roof can be installed. Leaky roofs are caused by faulty flashing around chimneys, sky-lights and roof ridges or valleys. Many newer homes have roof issues from inexpensive shingles have are only rated for fifteen years. Ask the year life-time rating on existing shingles on any home your want to buy. Slate, tile and wood shingle roofs are attractive but be forewarned that repairs to them can be costly.

-Cracked and bulging foundations. If you see a bulging basement wall from the inside, you have a costly problem. Hire a structural engineer to inspect a bulging basement wall . These can be material defects and should be disclosed by property sellers. Cracked foundation walls can allow ground water into crawl spaces and basements. Cracks should be professionally repaired and monitored. I’ve seen major cracks in homes less than five years old.

-Basement water damage. Water stains on basement walls and popped floor tiles can indicate prior flooding. If a home your looking at has a flood control system it’s a sure sign that the area floods. Check for sump pumps and verify they they have battery back-up systems.

-Structural walls or floors removed. Open floor plans are the rage today and many homeowners have created them in older properties. The problem is unless the openings were framed properly and included appropriate load-bearing trusses, these ex-load bearing walls could shift supporting loads to other areas that can impact the structural integrity of the entire house. Have a qualified structural engineer inspect any questionable alterations that omitted original load bearing walls.

-Mold in attics, basements and living spaces. Depending where you live in the country mold can be minor or can impact your families health. Newer homes aren’t immune to mold, in fact because they are so effectively sealed for energy savings, this can contribute to mold, especially between the walls where it is hard to spot. Hire a professional that specializes in mold to inspect for problems, offer remedies and project associated costs.

-Insects and pests. Carpenter ants, termites and other pests can rack havoc on a home. Have a qualified pest inspector evaluate your potential new home. I’ve seen my fair share of squirrel damage in attics over the years, so have your pest inspector check for this too.

-Buried oil tanks. You would be surprised how many oil and gas tanks are still buried and abandoned around the country, in urban, suburban and rural areas. Most states and the federal government have strict laws pertain to their removal and disclosure to buyers. If you have one on a property you want to buy, gather estimates for removal costs before you move forward.

About the Author:
Mark Nash’s fourth real estate book, “1001 Tips for Buying and Selling a Home” (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Whether it’s your first time buying a home or not, you should familiarize yourself with the whole mortgage process. Numerous mortgage lenders will assist you in the process of acquiring a pre-qualified and pre-approved home buying application. Of course, your mortgage qualifications will be required by your agent to strengthen your deal in finding and buying a home.

Here are some things to consider when buying a home.

- Money

Before buying a home, consider your financial status. Check your credit situation by getting hold of your most recent credit report at the credit center. You should know exactly how much money you have and how much you can afford to spend on a home.

- Time

Don’t expect to find a great home tomorrow if you’ve only begun your search today. Buying a home is like working on a school project. It needs ample time. If you think you’ve gathered enough information and resources within your time table, so be it.

- The Right Agent

If you believe in the comfort and rewards of buying a home, you will need to trust the agent who will do the work for you. In finding a reliable agent you will need to look at many sources of information to determine “who represents what”. It is always best to compare experiences, backgrounds and referrals of reputable people.

- Needs vs. Wants

Why confuse yourself between needs and wants when you can have both? Upon gathering information in buying a home, take into consideration the different types of houses available and decide what you want from what is offered.

- Word Confusion

Needless to say, when you buy a home you should familiarize yourself with the terms and words used during the dealing and negotiating with your agent and contractor. Also, try to keep a list of the questions you have that need further clarification.

- Cue Cards

You don’t want to forget even a single detail about the home you’ve selected, right? Why not keep little cue cards where the ‘plus & minus’ on each home or property you’ve seen is listed and recorded.

- Points and Plus

Learn how to bargain and get the best possible deal.

- Safety and Security

Be sure to get homeowner’s insurance. It may seem like a lifetime expense, but it will get you continued savings in the long run.

- Final Check

Do a final inspection or walk-through of the house before settlement and before the contract is processed.

Consider the above points as helpful factors when you to decide to buy a home. Plan ahead and avoid the common mistakes that most home buyers make.

By: Raynor James

Many communities have associations for homeowners, property owners, condo owners, or similar associations. The presence of a homeowners association, also known as “HOA”, introduces another layer of rules and regulations to consider when buying a home. Some people love these associations and some hate them.

Homeowners’ Associations

Some associations have very simple rules such as no abandoned, non-working motor vehicles and no grass above ten inches tall are allowed. Others have architectural review boards that must approve your paint scheme before you can repaint your house. I’m serious.

I was once looking at a townhouse with a potential buyer, and a neighbor knocked on the door to hand deliver a notice that the door had been painted without permission (it was a deep, wine red). The notice went on to state that the door would have to be returned to its original dark green color or an exception applied for within ten days. Although she liked the townhouse, the potential buyer decided she did not want to live with this sort of micromanagement.

Some associations add a significant amount of cost to the home purchase via high monthly, quarterly or annual dues payments. An aggressive association may also attempt to issue levies on homeowners for improvement projects. My husband and I once looked at a penthouse condo on the outer banks of North Carolina. I was reviewing the annual budget for the condo association, and noticed a twelve thousand dollar per unit levy made during the prior year. I asked about it and was told that it “depends upon the ‘beach push’ situation.” Further questioning elicited the information that when hurricanes or severe storms eroded the beach, fresh sand had to be brought in. Not only did it have to be brought in, it had to be pushed up into dunes and the dunes planted with sea oats and grasses! I am all for preserving the environment, but the twelve thousand dollar levy certainly made me nervous.

If you are considering a property controlled by an association, watch out for the following:

1. Sometimes associations limit what pets owners may have

2. If the association allows pets, it may limit the hours they can be outside.

3. Parking places may be assigned coupled with an aggressive towing policy.

Some associations maintain pools, tennis courts, elevators, trash collection, snow removal, grounds maintenance, provide bus or limo service, concierge service, and in general make life pleasant and trouble free. While these are nice benefits, make sure you are comfortable with the costs associated with them.

Look Before You Leap

So, as you can see, whether your concern is protecting the value of your investment (no junk cars), maintaining your freedom to choose (you want an eggplant door, a place to park the company truck, and/or to build an addition with a family room and a new kitchen), it’s very wise to check out those things which can limit your control and increase the cost of home ownership before you buy.

About the Author:
Raynor James is with the FSBO site - http://www.fsboamerica.org - FSBO homes for sale by owner. Visit our “sell my home” page - http://www.fsboamerica.org/seller.cfm - to sell your house yourself with a free 1 month listing.

Buying your first home can be both thrilling and scary and getting your first mortgage is usually part of the equation. Obtaining a mortgage can be confusing and stressful for many people, especially if this is a new experience. Without a doubt your home, even if it’s a starter home, is and will be, one of the biggest investments of your life. With that in mind it is important to take the mortgage process slowly and not rush or skip important steps.

One of the very first steps necessary in the mortgage process is to decide if you want to go with a direct lender or a brokerage service. Dealing directly with lenders can, in most cases be a little bit cheaper because you don’t have to pay a brokerage commission. However, a brokerage service can find lenders that are most suitable to the needs of the borrower and also take care of the many administrative tasks involved in the process. That is what you are paying them to do.

For first time homebuyers there are many programs that can assist including, but not limited to, FHA, VA and other specialized programs that vary based on where you live. Any quality mortgage company will be able to supply a listing of programs suitable to the lenders needs. In many cases these programs can be quite helpful in assisting in that first home purchase.

It is also important that you pre-qualify for a mortgage. That way you will know in advance how much home you can afford which in many cases will save you time, aggravation and in some instances embarrassment. You can go on the Internet and use any one of the free mortgage calculators available to help you figure out what your monthly payments might look like. Filling out that application and getting pre-approved is a must for any one seeking a mortgage.

You should also ask a lot of questions about anything that you may not fully understand. Find out the difference between a fixed and adjustable rate mortgage. You must also find out about any fees that may be charged to you. Some fees, quite frankly, can be avoided by the educated shopper so shop around. Buying a home is similar to buying anything else, only on a much larger scale. You always want to get the best deal possible and remember to never, ever sign anything that you don’t fully understand.

By: Jim Hart

The home buying and selling season is fast approaching and I will be giving out a series of tips for home buyers and sellers in the weeks and months ahead-tips that will help you protect your legal and financial interests. Buying or selling a home is a BIG business deal composed of people, emotions, contracts and cash-all the ingredients for legal and financial pain if you don’t know what you are doing and most people don’t. When you are doing a real estate deal, you are surrounded by sales people who have an economic interest (called a commission check) to manipulate you into spending as much of your hard earned cash as possible. Keep your eyes on my column over the next weeks and months, especially of you are a home buyer, because real estate agents legally represent sellers and NOT buyers (.)

Here’s a few basic tips I like to refer to as the 10 commandments for home buyers and sellers.

1. BUYERS: real estate agents legally represent sellers, NOT buyers…their job is to get the highest possible price for the property. They are not “your agent” and what you tell them may be used against you. Learn how to take control of the relationship.

2. BUYERS: avoid giving more than $100.00 when you write a purchase offer on a home. In this way, if you cannot complete a transaction you have less money at risk. Large good faith deposits do NOT guarantee you will get financing. Why risk your money?

3. BUYERS: arrange your home financing first, BEFORE you look for a home. Doing so gives you the same power as a cash-buyer. Our home buyer products show you how to use your pre-qualification to SAVE THOUSANDS when buying a home.

4. BUYERS: When you sign a purchase offer, make sure that you write above your signature the clause “subject to buyer’s attorney’s approval”. These 5-magic words can get you out of a bad deal if your attorney does not approve.

5. BUYERS: remember; a purchase offer becomes a legally binding contract when accepted by the seller. Fully understand the legal details before signing

6. SELLERS: avoid signing long-term listing agreements with any real estate agent. Keep the listing contracts limited to 90-day increments so that you can review performance.

7. SELLERS: Avoid signing a listing agreement with part time agents. Use only full time agents so that you increase your chances for more professional representation.

8. SELLERS: Interview multiple agents before signing a listing contract. Make sure that you write above your signature the clause “subject to seller’s attorney’s approval”. These 5-magic words can get you out of a bad listing contract if your attorney does not approve.

9. SELLERS: avoid signing purchase offers with unqualified buyers. Doing so removes your property from the market while waiting to find out you are dealing with a dud.

10. SELLERS: Make sure your agent presents you with an itemized marketing plan detailing the selling activities that will be performed during the listing agreement.

Planning on buying or selling a home? May I humbly suggest you visit our website? Smart Books Publishing specializes in representing consumers, people like you, who are planning on doing a real estate or business deal and you should know that this resource is available to you. Why? Because people are like lambs among wolves when buying or selling a home! Agents are trained in real estate principals, practices and some law. How much training have you had? Ever heard the term: caveat emptor? That’s legal jargon for “buyer beware” which is a fancy legal way of saying cheating is okay. The agents are on commission, the mortgage brokers on are commission and it’s a “good old boys club” which you are NOT a part of. Visit the site and get smart fast!

My E-Report: 101 Tips For Home buyers, Sellers And Money Borrowers will help you with more information regarding this article-go to smart Books website, send us an email requesting a copy and we’ll send it to your email address within 24 hours-absolutely free! (limited to first 20 responders-make sure you say you saw it on Ezine!). Another Ezine Exclusive! Until next time…
Jim Hart - EzineArticles Expert Author

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SMART BOOKS WEBSITE: http://www.smart67.com
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By: Ann Marie Rubertone

Unless you’re buying a custom home on a rural lot, you’re not just buying a house but the neighborhood that surrounds it. In many respects, the identity of a neighborhood is as important to the value of a property as individual properties themselves.

In a planned community, strictly controlled architecture governs a carefully crafted identity block after block. In a rural town, tree-lined streets and an old-fashioned town square preserves a disappearing way of life. In a large city, an older neighborhood’s ethnic history has shaped its character and is driving its rejuvenation.

It’s important to know where a neighborhood has been –and where it is going–before you decide to buy there.

Here are some places to start:

Head for the statistics:
Between FBI crime statistics, school scores now available from several national companies and demographic information culled from U.S. Bureau of the Census and other sources, it’s now possible to break out a lot of valuable numbers about a community, much of it on line. This means that you as a buyer are no longer dependent on anecdotal information only about school quality or crime levels. You can see for yourself.

Go to city hall or planning & zoning:
The last thing you want to find out about the neighborhood of your dreams is that there is a huge discount-tire store due to be built on the big empty lot right across the street from your quaint Craftsman bungalow. Your town or county’s zoning and/or planning authorities are good sources for any kind of planning document for the town. If you want to be sure that the rural hideaway you just bought stays that way, check with these officials. Large projects like major road construction is planned years out from the actual start date.

Check out community:
Want to know what’s really happening in a neighborhood? Ask the local barber. It may sound like a cliché, but nobody knows a neighborhood like the people who work there day in and day out. For your part, visit the neighborhood on your own at different times of day and night. Talk to neighbors. Visit nearby schools and shops. Subscribe to the local paper. Small local papers can be chockfull of information you can use in scoping out a neighborhood or community. If you depend on public transportation, find out what is available and how accessible it is. Drive to and from the house from several different directions, not just the most scenic route that your agent used when showing you the home.

Think ‘resale’:
It’s difficult to think about reselling the dream house you’re about to buy, but the quality of a neighborhood will play a big role, whether you are living in least or most expensive house on the block. Get a list of homes for sale in the neighborhood from your agent to determine how many days they’ve been on the market. If properties haven’t been selling quickly, you’ll want to find out whether it’s just the market (slow) or whether there are any neighborhood issues that may make resale difficult.

Find the “hot” spots:
A good place to start looking for tomorrow’s hot neighborhoods is right on the edge of the most desirable, well-established neighborhoods. These tangential neighborhoods frequently are next in line to experience a run-up in prices. Other signs of a neighborhood heating up in popularity:
· Multiple-offer home sales
· An increase in the number of out-of-area buyers moving in
· An increase in local residents trading up within the neighborhood
· A decrease in the percentage of renters
· Signs of remodeling

A desirable neighborhood may have more than one of these elements:
· Close proximity to a thriving economic center
· Good public schools
· Nearby shopping, check out the stores! The type of retail and stores are good indication of the economic development in the area. ex: too many $1 stores/discount stores are a good sign of BAD economic development.
· Good public facilities
· Convenient commute options to a major metropolitan area
· Well-maintained homes
· Low crime
· High percentage of owner-occupants

Before you buy:
If you haven’t had time to thoroughly check out a neighborhood, always ask your agent to do some research for you, most agents should offer this service without asking! Before you make an offer to buy there, include a broadly written inspection contingency in your purchase contract that includes the neighborhood and the house. Such a contingency might state that the offer is dependent upon the satisfactory inspection of both the property and neighborhood by the buyers. If you only want to buy the house if you can answer a very specific question about the neighborhood, then write this in as a specific contingency of the contract. For example, the contract might be contingent upon the buyer confirming that a deli cannot be built next door.

About the Author:
Ann Marie Rubertone is a Treasure Coast Florida Realtor working with investors nationally and internationally specializing in 1031 tax deferred exchanges and commercial and industrial devlopment. She also assists FSBOs in the marketing and selling process.

Ann Marie Rubertone Treasure Coast Realtor (772) 323-9628 http://www.AnnyIsMyAgent.com cio@adelphia.net

Admit it… for years, or even decades – it has truly been your home sweet home. And now, you refer to it as a plain ‘property’ to sell.

Selling a home need not be a bitter encounter. We should healthily treat it as a source of marketable commodity, a money-generating property, a real estate. We should see our property as not just a plain house or a shelter, but as a fortress! In selling a home, we should also let other people (especially prospective buyers) get the same home sweet home experience we had.

One good move in selling a home is to first cut off your personal attachment from it. Have it ready for others to see and in time, they’ll consider buying it.

People usually are not looking for big houses. They might consider the size more important if they have a large family, but most probably they’ll look for the comfort and homey feeling it brings. In selling a home, remember to restore its best features – just like the way it looked when you first stepped in.

Remove all posters and frames of photos and de-personalize before selling a home and presenting it to prospective buyers. Make sure you have a final walkthrough to see if all personal memorabilia has been removed. Then try to see the parts of your home that need some re-conditioning.

Removing all the clutter is also a major step in selling a home. Sadly though, this part is also the hardest to do for homeowners as they have become emotionally attached to it. On the part of the buyer, seeing clutter is a very negative thing that will drive them away from the idea of buying. In selling a home, highlight all spacious area of the house and clear away all visible clutter.

In selling a home, you will most likely meet two types of realtors. Realtor Type #1 will present and come up with prices much lower than what you’ve estimated and will strongly strengthen their statements with sales records of homes similar to yours. Then here comes Realtor Type #2 who perfectly agrees and matches with how much value you are expecting to get, or sometimes they may even declare a higher value. Study their Competitive Market Analysis before you decide.

With the few tips provided in this article you CAN get started. Review your plans, pair up with the right realtor, and in just a short time you will feel much more comfortable in buying and selling real estate.

Fun and purchasing a home are probably two concepts that cannot be further apart. Instead of being fun, purchasing a home might prove to be nerve-wracking and stressful. This is understandably so since this is an investment that spans a lifetime – a whole set of generations even.

We can make it less stressful!

Buyers are intimidated by the various dimensions that make purchasing a home troublesome – the legal aspects, the financial aspects, dealing with brokers, agents, insurance, and others purchase concerns.

But dissecting these roadblocks and adding some spice to you choice of property could make this life-changing decision an enjoyable one.

Step 1: Assess your finances

The question here is can the buyer actually afford payments for a home. The buyer may want to consult a financial adviser as to the strategy he or she may employ in paying for a home. This is imperative especially if the buyer has a troublesome credit history and other financial obligations. The buyer must also reach a compromise between payment capability and desired property.

Get yourself that “pre-approved” certificate from a lender. This certificate gives the seller the assurance that you have enough money to buy their property. Securing a Pre-Approved certificate would range from a few days to a few weeks depending on the status if the request. But it’s worth the trouble of waiting. It increases the chances of you getting the best deal in the market.

Step 2: Survey the Market

With the explosion of information in today’s age, it becomes more exciting to search for possible properties. Newspapers, advertisements, referrals, brochures, and even the internet all give the buyer more choices and better options. Buyers should take full advantage of this information glut to facilitate his or her decision regarding a house.

Consider the Multiple Listing Service. The MLS is a database - an extremely convenient way to know what properties are for sale at any given moment. This makes it very useful to real estate agents and brokers.

Basically, the MLS is like a huge property warehouse. When a property is available for sale, it enters the warehouse. When it is sold, it leaves the warehouse.

The MLS only contains information since real estate cannot actually be stored in a warehouse. This information comes from the various brokers that exist in the scope of an MLS.

Why the MLS works for home buyers

First of all MLS is very convenient. Buyers can browse through the available properties listed on an MLS.

Using the MLS also does not cost anything. It is a free service that is sponsored by the Realtors advertising their available properties.

Step 3: Learn from Others

If the buyer is a first-timer, he or she does not have to make the common mistakes newbies commit. He or she should contact people who have been in the same circumstance and learn from their experience. This will save the buyer from a great deal of grief later.

Even grizzled veterans of such purchases would do well to seek advice from trusted colleagues on the matter.

Step 4: Find an Suitable Agent

This is one of the most underestimated, yet important aspects of home buying. Most buyers end up with an agent by sheer accident. It would do well for the buyer to do research and contact an agent whose strategy and skills fit the buyer’s needs. Buying or selling a house is a thrilling experience. But connected to this is a stressing and overwhelming job. This calls for a good real estate agent. But what do we need to know about hiring an effective real estate agent.

Verifying the real estate agent’s license is very helpful. It pays to be very cautious because this involves the property! This includes his state license in selling a property. Added to this is a doing a short background check on the agent. Ask for the previous estates he sold or acquired for a client. Knowing the trainings and seminars he’d attended would also give the client a grasp on the abilities of the agent he would be hiring.

Develop a good chemistry with your agent. With the agent knowing what the buyer or seller wants he knows where to start and what to consider. The agent should be able to tell his client the true worth of his property because it is really what is worth and not because he just wanted to lure the client in doing business with him. Meeting up with the agent once in a while so they could keep their clients updated about the property.

In selling a house, the agent acts as the adviser. He gives the owner advices like the asking price of the property and acts as mediator between the buyer and the owner. And in buying a house, the agent acts as the researcher. He also does the legwork and sorting through which properties best suits the need of his client.

A skillful agent can save the buyer a great deal of trouble and is instrumental in a successful sale.

Step 5: Close the deal

A great deal of discussion and paperwork in involved in closing a deal. However, if the preceding steps were accomplished well, this step will most probably be exciting instead of worrying. Here, the buyer and the seller come to terms with the financial details, paperwork, and other details vital to the sale. If this comes up right, the buyer can now come home to an exciting new home.

Whether it’s your first time buying a home or not, you should familiarize yourself with the whole mortgage process. Numerous mortgage lenders will assist you in the process of acquiring a pre-qualified and pre-approved home buying application. Of course, your mortgage qualifications will be required by your agent to strengthen your deal in finding and buying a home.

Here are some things to consider when buying a home.

- Money

Before buying a home, consider your financial status. Check your credit situation by getting hold of your most recent credit report at the credit center. You should know exactly how much money you have and how much you can afford to spend on a home.

- Time

Don’t expect to find a great home tomorrow if you’ve only begun your search today. Buying a home is like working on a school project. It needs ample time. If you think you’ve gathered enough information and resources within your time table, so be it.

- The Right Agent

If you believe in the comfort and rewards of buying a home, you will need to trust the agent who will do the work for you. In finding a reliable agent you will need to look at many sources of information to determine “who represents what”. It is always best to compare experiences, backgrounds and referrals of reputable people.

- Needs vs. Wants

Why confuse yourself between needs and wants when you can have both? Upon gathering information in buying a home, take into consideration the different types of houses available and decide what you want from what is offered.

- Word Confusion

Needless to say, when you buy a home you should familiarize yourself with the terms and words used during the dealing and negotiating with your agent and contractor. Also, try to keep a list of the questions you have that need further clarification.

- Cue Cards

You don’t want to forget even a single detail about the home you’ve selected, right? Why not keep little cue cards where the ‘plus & minus’ on each home or property you’ve seen is listed and recorded.

- Points and Plus

Learn how to bargain and get the best possible deal.

- Safety and Security

Be sure to get homeowner’s insurance. It may seem like a lifetime expense, but it will get you continued savings in the long run.

- Final Check

Do a final inspection or walk-through of the house before settlement and before the contract is processed.

Consider the above points as helpful factors when you to decide to buy a home. Plan ahead and avoid the common mistakes that most home buyers make.

First time home buyers face many challenges in understanding the process of purchasing a home, obtaining a mortgage, and knowing which type of loan will best suit their needs. Advice from well meaning loved ones can be helpful, but buying a home is a major financial commitment and you would be wise to educate yourself on the home buying process before taking the first step.

When you make the decision to purchase a home, talk with a real estate agent who can give you expert advice and valuable information. The purpose of this initial meeting is not to sign a representation agreement with the real estate agent, but instead to make yourself aware of local real estate customs in your particular area. If the agent has no time to discuss the home buying process with you, then keep looking until you find one who will. A good real estate agent will offer you information on the local real estate market and give you an idea of the types of mortgage products that are available to you. A mortgage broker or lender can also give you valuable information when you decide to buy a home.

The questions you should ask the real estate agent or mortgage broker include how to make an offer on a home you wish to purchase and the specifics involved in between making your initial offer and the final acceptance of the offer from the seller. Ask about the settlement costs, the down payment amount that you may need, and the length of time involved between the acceptance of your offer and the final closing date.

Make sure you understand your credit situation and what it means to you as far as applying for a mortgage. Down payment requirements and the interest rate you will receive are directly related to your credit score. You should be aware of exactly what is on your credit report before beginning the home buying process.

These tips will give you a good start in making wise decisions when you purchase your first home. Keep in mind that buying a home can be stressful at times and that a calm attitude and the ability to cope with any issue that may arise calmly will make the purchase of your first home a more pleasant experience. Buying your first home is one of the most exciting events in your life. Give yourself the information you need and take the advice of experts when you begin the home buying process. The experience will be less stressful and you will benefit from the knowledge you have gained.

Yeah, it’s been a while since I’ve posted. Not much and a lot has happened. We’re still in our apartment and the new house is being built. We go out every Sunday to check on the progress and everything is moving along quite well.

We were supposed to close on Friday this week - WOW! Yes, they really built it fast, didn’t they? Only thing is Hurricane Rita threw things off track last week and the granite countertop company doesn’t have computer access, consequently they can’t tell the construction supervisor when the countertop will be installed. Sooooo…we won’t close this week. Maybe next week, we just don’t know right now.

Last time I was out there, about 8 days ago, it was looking really nice. The cabinets were in (no countertop) and the tile had been laid. The tile installer did an especially nice job. I wasn’t real happy with the cabinets, right now, without the countertops, they look cheap. I think after the countertop is on and we add some nice hardware, everything will look okay. I will say though, they are not the best cabinets, they are cheap, builder grade cabinets. Oh, well, what can I do? We got a great price on the house and I guess they save money in the cabinets. We’ll do what we can to make them look good and I’m sure they will be fine.

They also poured the patio, it’s a really nice size. With all we have planned for the backyard, it’s going to be super nice. We also decided on the colors we want to use in the living room/kitchen area. It’s an “open” floor plan so all the colors will need to flow. We’re going to use a ragging technique in the living area, a golden color over the cream base color that is already there. In the dining area of the kitchen, we’re going to use a reddish terra cotta color on the wall that faces the living area. It looked great on the swatches in the natural lighting of the house, we’ll have to see what it really looks like once it’s up.

Anyway, I’ll update again soon.

Buying Houses For Sale By Owner
by Steven Gillman

Houses for sale by owner, also known as “FSBOs,” are a unique case in real estate investment. Buying from an uninformed seller who thought he knew enough to handle everything by himself can be frustrating. It can also be very profitable if you are prepared.

Why do people try to sell a house on their own? Only one primary reason comes to mind: To save the sales commission. Of course they usually underestimate the cost and complexity of going it alone. They end up frustrated and tired of the process, ready to drop the price and be done with it. Help them solve their problems, and your reward can be a good price on a good investment. Keep the following in mind:

1. An owner isn’t an agent. Don’t ask possibly offensive questions. Don’t make negative comments about the house. Whether you like it or not, the truth is that it’s difficult to get a good deal if the seller doesn’t like you.

2. Houses for sale by owner have often been on the market a long time. The seller is usually tired of the process, and wants it to be done. In other words, you’ll get a better price if you are willing to close quickly and easily.

3. FSBO sellers usually think they’re being smart. Encourage that belief and they’ll be more open to your offer. When they have a good idea, tell them so. It is not unethical to make people feel good about themselves when negotiating.

4. They usually don’t have a plan for where to close, where to buy a title policy, where to keep a good faith deposit, etc. Be ready with simple solutions to all these problems. Walk them through the process while letting them feel in control, and you’ll both be happier.

5. They have often spent more than they anticipated. Advertising and other costs have already eaten into their imagined extra FSBO profit. Be generous in negotiating any pre-close expenses - as long as you get your price and/or terms.

6. Pass over problems and return to them later. Once a seller has invested more time in a negotiation, he’ll be more inclined to give you what you want.

Professionals will tell you that most houses “for sale by owner” net less than those sold by an agent. It’s too late for the seller to recover his money and time spent, however, so he usually just wants to get the thing sold as easily and quickly as possible. Help him with that, and you can get a good real estate investment at a good price.

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Well, we did it, we signed the contract to build a new house. I think we got a great deal, it’s out in the Cypress area and for less than $140k, we got 1937 sq. ft. and all the bells and whistles you can imagine.

We spent several hours out there yesterday just looking at one of the houses that’s in the contruction phase. We were lucky, the AC was on. They already had the tile layed and the granite countertops on. We were able to see how the undermount sink is installed ~ it was AWFUL. That’s a real concern, we may just go with an overmount and change it out later.

Anyway, here’s what we’re getting ~

• Upgraded carpet pad and one level upgrade carpet
• Tile ~ entry, extended entry, breakfast, kitchen, pantry, laundry room, hall bath, master bath, hallway, and around the breakfast bar
• Granite countertops grade level II (uba tooba - black with some gold), upgraded bullnose edge
• Undermount sink - this is still up in the air, I’ll need to see a good installation
• Upgraded 42″ cabinets with a cabinet over the fridge ~ the ceilings are 10′ high, 30″ cabinets would get lost.
• Upgraded GE stainless steel appliances, we also got the refrigerator since we sold ours with our house.
• French doors to the dining room since we’re going to use it as an office.
• Double width crown molding in the family room, single width in the entry and extended entry. The entryways are separate little rooms that aren’t as tall as the family room, we think it will be okay to only use the single width there.
• Arched doorways from family room to hallway, from dining to kitchen and from living to master bedroom.
• Chair rail in the dining room. We’re going to use it as an office but when we sell, the new buyers might want it to be a dining room again.
• For energy we’re going all out - radiant barrier on the roof, R38 insulation, SEER 14 Air Conditioner, and Energy Seal package.
• Brick on all four sides, it comes with three side brick and Hardi-Plank on backside, Brent likes brick all the way around.
• Full gutters all the way around.
• Two flood lights (one in front and one in back) and two carriage lights on the sides of the garage.
• Garage door opener.

Pretty good for less than $140k huh? I went and looked at some new houses that are being built near our current house, they will be zoned to the same high school. Guess how much they cost? Well, the base price for their 1-story 1850 sq ft home was $169,990 BEFORE upgrades. The standard items were comparable to the house we’re building. We’re spending about $15,000 on upgrades and the builder gives a $6000 incentive. The builder over here near our current house give a $4000 incentive. If I bought his smallest house with the same upgrades, I’d be at about $181,000. I’m currently at almost $140,000 at the house we bought. Quite the difference, huh? We’re going to be in a new part of town that’s a little further out, but we’re going to save $40,000!!!!! Wow!!! I feel good about our decision.

After finding those nice Pulte homes on the other side of town on Sunday, it made me wonder what other neighborhoods they were building in. So on Monday I got on the internet to find out.

I found a neighborhood that’s on our side of town, it’s a lot further out than we are but it’s still in our school district. This was Monday about 3:30 p.m.. Brittany had just gotten home from her volleyball practice and on a fluke I asked her if she wanted to drive out with me to take a look. YES! Like I said, she LOVES looking at houses. It’s kind of nice, we’re getting to spend some time with her in this process.

So, we drove out and found the same floorplan that we saw on Sunday and it cost the same. The neighborhood was still very new but not as bad as the one from Sunday. Brittany and I really got into it. We looked at inventory homes, even picked out a lot…you see, I will ONLY buy a north/south exposure, I learned from experience that an east/west is NOT a good thing.

We went home that night with a floorplan picked out and a lot. It was in our price range and the West Park Tollway went right out to the neighborhood so Brent would have an easy drive to work. I sat down with Brent and went over every detail. Wednesday morning we had scheduled with our realtor but Wednesday afternoon Pulte would be seeing our shining faces. I wanted Brent to see this.

In the meantime Brent sat down at the computer to figure out how much it would cost to take the toll road to the location where he’s going to be after the house is built. Once they finish the toll road all the way out there would be 4 or 5 toll booths, each costing $1.00 and an exit toll of .25 cents. Whew! That’s a lot of money in tolls, it could be over $10 a day round trip. We starting thinking how we really needed to consider that before we jump into anything.

So, Wednesday rolled around and I’ll tell you all about the resell houses we looked at in the morning with the realtor in another post, but that afternoon, we went out to see the Pulte homes. Turned out that a second trip was a little more telling. I hadn’t seen the HUGE electrical plant that was within eyeshot of the lot we had picked out. Plus, I had been so excited that I drifted away from my original desire to have a one-story house.

Anyway, Brent wasn’t as enthralled as Brittany and I were so we also looked at the houses that Pulte was offering that were a step-up from the original house. We ended up liking one of those much better. We even looked at lots, north/south exposure. Guess what, there is a cell-tower right in the middle of the neighborhood. So even though we “kind of” got away from the electrical plant we had a cell tower just one street over. Hmmm…not exactly great for resell value.

So Brent and I left and drove around the area some more. We found a couple of great neighborhoods. One we knew we couldn’t afford, but the other…well, it looked good. They were building Ryland homes. The salesperson was quite busy with something but he did take the time to tell us about the neighborhood and the energy saving features of the houses they build. We got to thinking about how much money those great double-pane low-e windows would save us on our electric bill, you know we pay $370 a month on balanced billing right now? That’s $370 each and every month of the year, if we weren’t on balanced billing, our summer bills would be near $500. Hmmm, energy-efficient sounds really good.

So that night I got on the internet again to see where else Ryland was building. Low and behold, they were building out in Cypress, that’s where we were on Sunday. But you know what? The same floorplans were $12,500 to $15,000 LESS!!! Oh my goodness, that’s A LOT of money! So Thursday morning before Brent went to work, we went out there.

They had the perfect little floorplan and we fell in love with it. Plus the neighborhood was almost finished and it was really nice. So, we started thinking this was it. Brent still had reservations about the drive and we just had to do some more thinking. But, it was close enough for me to spend some time with the upgrade sheet and start to figure out what we wanted.

Back at home we were telling Brittany all about it and she wanted to see it. Her volleyball practice is on that side of town from 12-2 p.m.. She wanted me to go to practice with her and take her over to see the house. So we did but first we drove around to see what other builders were in the area. Brent and I hadn’t done that the day before because he had to get to work. I’m really glad we did that because first, it gave us a good idea of what the area is like and second, we found a better house for the same price. It was like God dropped us into the perfect situation.

Well, it’s looking like we didn’t find a house on OUR side of town, but that’s okay. We drove from the house to Brent’s work and it really wasn’t a bad drive at all, and he won’t be paying tolls which will save us a lot of money. So, I’m going to wrap up this post, but I’ll come back later this week AFTER we sign the contract (I don’t want someone to go out there and take the lot we picked out because they read about this great deal here on my blog) and tell you all about the new house we’re getting ready to buy. I think you’ll agree, we got a great deal.

Looking for a new house is a lot more work than I first envisioned, especially when you’re looking on the other side of town. And we don’t live in a small town, we’re talking Houston where it takes 45 minutes to anywhere.

Well, we first started trying to figure out where we want to live a couple of weeks ago, after the lady who bought our house came for her first showing. We just knew she would be making an offer, so I got on the internet and started looking for distressed houses and foreclosures. There were tons of them but the problem was I didn’t know the neighborhoods and the only way to know if they’re somewhere you want to live is to go look ~ in person.

So, I made a list, printed off maps, and gassed up the car, Brittany and I went hunting. I did a good job of planning the day so we didn’t have to do any back-tracking. We looked at about 15 neighborhoods. A lot of them were nice and others were nicer. Our outting ended in the vacinity of West Rd and Barker-Cypress where they are building a ton of new houses.

For some reason Brittany is loving the hunt, she loves to go look at houses. It doesn’t matter if they’re new, old, distressed, only in the framing stage, she loves looking. We weren’t ready to go home yet so we decided to end the day by looking at some new houses. Well, of course, that was the best.

It’s hard to even remember what the first new house we looked at actually looked like. I know it was only about 10 days ago but you can imagine, I’ve probably looked at 100 houses in the last 10 days. Anyway, I remember it being really small and plain. There were no bells and whistles, no tile on the floors, no tile backsplash in the kitchen, no solid surface countertops. It was an inexpensive house and looked like an inexpensive house. I really wasn’t too impressed.

The next day we all went looking again, Brent was with us this time. We basically did the same thing, driving around looking at neighborhoods and making notes of whether or not we would want to live there, at the end of the day, we ended up in a new Pulte neighborhood. We absolutely loved the houses. They gave you a ton of upgrades (tile floors, tile kitchen backsplash, 6 panel doors, etc., etc.) plus you could buy $10,000 worth of upgrades for $2500. Cool. And since the house we live in