Buying a home can be one of the biggest and most important investments you can make. The process of buying the home that you want can be a long and tedious process, taking up most of your time. It’s up to you, as the consumer, to ask any questions, pay attention to details and to learn about the real estate market in the area in which you intend to buy.

Step One

You must know what your wants and needs are before embarking on the long journey of house hunting. Taking a piece of paper, sit down and write down all the features that are most important to you:

Are you looking for a house in a specific city, neighborhood or school district?

How many bedrooms and bathrooms do you want or need?

Do you want off street parking, or a one or two car garage?

If you operate a home based business, are there any restrictions in the area you intend to buy in?

Do you want a finished basement or attic space?

Do you want a ranch style home or two story house?

Do you want a central air unit?

Do your want a furnace or a boiler for heat?

Now, on a separate piece of paper, write down all the features that you absolutely do not want in a house:

Living in a congested part of town.

Living next to an airport, train station or highway.

A home that is in great need of repair.

A home with too many stairs.

Keep this list in mind as you look at houses. This list may also change from time to time as you look at houses. You may choose to add or remove certain features you do not want or are willing to make compromises on. Don’t be disappointed if you can not find the “perfect” home. Most homes do not come “perfect,” they can only be made that way through time and patience.

Step Two

Before you begin looking at properties, you will need to get your finances in order. This will be a good time to review your credit report and possibly clean it up a bit to improve your credit score. It’s important to check your credit report to make sure there are no discrepancies. Any past due amounts should be paid in full or most companies will be willing to negotiate a settlement price to close the debt.

For example: If you have a past due credit card debt you no longer use and that has been entered into collections at an amount of $900. You may be able to offer the company a settlement of $500 to settle that debt and have the debt stricken from your records. Before paying this settlement, have this agreement in writing. Be sure to keep all of the receipts to the items you settle on your credit report because it may take weeks or even months for the settled debt to be removed from your credit report.

Step Three

Now decide what kind of property you are interested in buying. Are you interested in a HUD, foreclosure, real estate or for sale by owner property? There are many web sites on line where you can find homes by city, state, or price range. On these sites, you can see the picture of the home, many with virtual tours, and review the listing features and details.

Step Four

Now is the time to find a lender and get pre-approved for the loan. This will give you a better understanding of what price range you can look into. Being pre-approved also serves a great advantage for when you find the home that you want, so that you can move ahead and place an offer on the house without having to wait on a pre-approval while someone else steps in and takes the house right from under you.

Lenders may offer special programs on loans, such as the FHA or Ameri-Dream, that can save you extra money in the closing process. Before deciding on a loan, ask the lender about any of these special programs and what would work to your advantage.

Step Five

Most first time home buyers prefer to work closely with a reputable real estate agent, regardless of the type of property you wish to buy. Real estate agents are very knowledgeable and can give you many helpful tips and information that can benefit you. They are also great negotiators and will help explain the complicated paperwork involved when placing an offer on the house or when closing a deal. Be certain that your real estate agent is working for you as the buyer and not for the seller of the house you would like to purchase. This can lead to a conflict of interests and cause many problems.

Choosing a real estate agent to work with should take more than picking a number out of the phone book. Talk to your friends and neighbors and ask them for any recommendations. You should only work with an agent you feel comfortable with.

Scams have become an ever growing thing in the world today; as soon as one is knocked down another one arises in a new and even harder to catch form. Let’s have a look at some of the most extreme accounts of scams that are very common and hit people right where it hurts, their pocket.

5. Mortgage Elimination Scams:

This scam works by the company telling their client that they can completely eliminate their mortgage debts through loop holes in their contract for a small fee. This fee is usually around the few thousand dollar mark. These scams aim for people who are financially stressed and are looking for a way to get back on top their mortgage repayments. Home owners have fallen for this scam and the only real outcome is that they have put themselves further in debt and have a lost a fair bit of their money as well as sometimes even having criminal charges put against them.

4. Investment scams:

These scams work by enticing people to invest their money into their company with low and a discounted deposit which include a super high interest rate. They guarantee that you will start making money on your investment within a matter of a few short hours. Usually the people who are most likely to fall into such a scam are people who are new to the whole investment arena. The outcome of such a scam will be your loss of a lot of money that is most likely never going to be retrieved.

3. Mortgage Loan Scams:

This scam works by either advertising on the internet or through the local paper and will usually use well known names of loan companies. These ads are often aimed at people who are looking for a low interest rate mortgage loan. Many people buy into it, contact them and give them a wealth of information about themselves such as their social security number and their bank account details. Usually these loans are approved immediately and the next step is for you to fax your personal information to them. You will be expecting them to make a deposit or a repayment for you, but it never happens. Usually the outcome to this scam is that people lose their money, have no mortgage loan and are at risk of identity theft.

2. Business Opportunities:

Everyone has the dream of one day working at home or owning their own business and that is why this scam is always around. A person fall into it every single time it’s offered, especially now that the internet is here and makes it that much easier to scam people. These scams work by promising, for a small up front fee, that you will receive a list of jobs or have a great selling business that you can make thousands of dollars from, every single month. Usually the outcome is that you pay out money not to ever receive any work or any thing in return.

1. Credit Card Scams:

I saved this one for last as it is the most extreme and most common scam that’s around today. No one is safe from it and it can happen anywhere and at any time. Some common ways people can get your credit card number and scam you into paying thousands of dollars worth of bills is through the internet and using insecure pages to log in your credit card information. Through the phone, people ring you up pretending to be the bank or another company asking you for your credit card numbers to verify it. Many new credit card holders have their cards stolen and nowadays it is easy for the people who steal them to verify them. Using such inventions like the ‘fake’ caller ID, all they have to do is have your credit card number along with your phone number and they can make the verification call from anywhere by dubbing your number into the fake caller ID. The outcome of this is usually always the same, they create one enormous bill for you to pay before you even realize that your card or your cards numbers have been stolen. Also another outcome is the risk of having your identity stolen, as they have all the information they need.

As you can see all of these scams are pretty common and you see them everyday, but just because they are common doesn’t mean that you need to fall prey to them. Always protect your personal information and use your common sense when applying for things.

Buying a house for whatever reason should be a fun and exciting time.  Open houses are an enjoyable event.  You may even visit three or four different homes in one day.  There are special things to look for when going to see these houses.  An open house is used to check the market and let potential buyers window-shop.  There are certain criteria you have in mind when searching for the perfect home.  Jot those ideas down and compare them to the homes you view.

Take a notepad with you to each house and make a note of the address of the homes you visit. Jot down things you like and dislike about each house. This will help you keep track of which house is which.  Make note of nearby schools, the general neighborhood, how close is freeway access, where are the shopping malls, and any other information that will help you decide on your choice of home. The commute to work is a vital piece of information.  Many forget to consider how far away the job is.  The last thing a person wants to do is spend too much time on the road instead of with the family.  When attending an open house, remember that the neighborhood surroundings are an important aspect to purchasing a house.

Check the condition of the house, the road and the yard.  Is it suitable of children or pets?  Who will take care of the yard or can you hire a gardener?  Whatever you desire, be sure to think of everything and take plenty of notes.  A poloroid camera is well worth taking. Clip instant snapshots to your notebook to help you remember specific houses. Buying a house is an important step, so make sure you know what to look for.  Check everything.   Notice cabinets, appliances, doors and even views out of the windows.  Listen to noises that could be bothersome, such as a train that passes near by or a freeway. Make sure there is plenty of living space or room to add more if you desire.  Most people forget to ensure there is enough closet and storage room.  Write down vital pieces of information which should include anything that will help you with your decision.

At the open house, an owner or broker is likely to be present. If there is one in attendance, ask questions.  Find out all the little secrets about the house.  Granted they will not always be straightforward.  Have a memo of each inquiry.  Put in writing all the answers.  When you make the choice on a house you can add these questions into the sales contact and re-ask the query.  If these replies differ in the writing stage you may not want to do business with these people after all.  All homes have concealed facts.  Some are not real terrible but others can be horrendous.  Interrogating the owner or broker is an ideal way to find out things that are not visible.  Do not be shy about wanting to know how your dream home is really shaped.

Many times, several brokers, lenders or agents frequent open houses.  They want your business as soon as you step foot onto the property.  Do not sign anything.  Even if this were the house you would like to purchase.  On sight people have one agenda, to sell you something.  Usually the brokers who visit many different open houses will try and get you to view other properties.  Which is fine, however they do not know anything about your wishes of the home you want.  The mortgage lenders may try to sell you a different house at a better rate.  However, in the end it is more likely you will end up paying more.  At the stage of an open house it is most probable you are playing the field.

Going to an open house is a time-honored tradition.  Open houses are for looking and sometimes even buying.  With an important and expensive decision to make, it is better to research and look at all of your options.  When venturing upon an open house, understand all the choices offered.  Try not to be persuaded in making rash decisions.  You have the option of looking, taking those important notes, returning to look some more, and even moving on if this house is not for you.

Your mortgage off early

One niggling question that perhaps gnaws at everyone’s peace of mind at some point of time or other is: Should you pay off your home loan or invest the money? You’ll be amazed by the variety of answers this question can elicit, and from this alone you can realize that there’s no one answer for everyone. Though theoretically, the concept is simple: If you think of extra mortgage payments as an investment and your return as the interest on the loan, you need to now consider if you can get higher returns elsewhere? “Yes?” Then, keep the mortgage and invest the money securely.

Having said that, it’s a matter that requires great thought whether you should pay off your mortgage payments or carry them for longer. It depends on several factors such as your tax bracket, how your cash-flow picture looks and what you think about carrying a big loan on your head. Your decision really depends on your mental make-up and your situation in life.

For instance, if you are at the peak of your career, you should hold on to your mortgage. No, don’t consider paying off an early mortgage just yet. If you are in the high income bracket, it means higher income tax too. The good news is that your mortgage interest is just one more income tax deduction you can claim to pay a lower tax. This is the happy side to your loan and you never realized it, did you?

Now, you can even get the most out of your mortgage-interest deduction if you pay off the greater part of your interest early on in your loan term. You can do this by paying one or two more installments during the year. Now to balance your budget, take care to save for a rainy day, for your children’s education, etc.

If mortgage rates are low, invest your money in schemes that give you better returns. But when mortgage rates are higher, invest it in to your home since this guarantees you a higher rate of interest. If for example, you have a 14% mortgage, you can get a 14% rate of interest if you pay it off. Then, before you know it, you will be loan-free.

If you are reaching retirement age, you perhaps want to expedite the repayment of your loans so that you are debt-free when you hang up your boots. Ensure that paying off your mortgage payments in a rush doesn’t actually become counter-productive.

So suppose you decide to refinance your mortgage so that your term is shortened to 15 years and you have a zero balance on your home loan by the time you’re 65 years old. Due to this, your principal and interest payment stand at $950 a month instead of $750 a month. When you reach pay-off day, you can now invest that $950 in a fund that gives you 9% interest. Give yourself another 15 years and you’ll have a tidy sum of $360,000.

Now let us suppose you’ve been retired for a few years now. Considering this, you’re sure to have been paying off more principal than mortgage interest. If this is so, paying off the mortgage loan becomes your prime interest in life, besides also proving to be a cash flow problem. If you know that post-retirement your cash flow will be largely restricted, it would be wiser for you to concentrate on paying off your mortgage. But if you have a few assets or none, it might be a better idea for you to diversify your investments. You could consider saving in either a savings or money market account which would give you healthier returns than the interest you are paying out on your mortgage.

If you’ve just sold a big house and are cash-rich, taking out a mortgage makes complete sense, just so long as your investment returns are larger than your mortgage interest. If you don’t tie up all your cash in real estate, you can take full advantage of tax deduction, invest in other schemes and have greater liquidity at your command. Not only will your loan be paid off, but you will have peace of mind in your sunset years.

Open house is a great opportunity for both the buyer and the seller.  It gives the seller the chance to showcase their home and the buyer can view the home in all its glory.  Buyers love to scope out potential homes and many offers are made at open houses.  After all, open houses are really sales presentations. In order to have a successful open house, there are some tasks that should be completed by the seller beforehand.

The most obvious task is cleaning.  The house should be spotless, including appliances.  If you work full time and don’t have the time to get the house cleaned, hire a house cleaning service.  The money spent is well worth it if you are able to sell quickly.  It might be hard to keep it clean if you are still living there, but you must make a concentrated effort to try.  Your home presentation must be impeccable.

Keep foul and mysterious odors away.  The first thing a potential buyer will notice is an offensive odor and you will probably never see them again.  Regularly inspect your home for potential odor sources and keep a steady supply of candles and air fresheners on hand.  If you have an indoor cat, keep the litter box out of sight and scooped out daily. 

Clutter is a major turnoff to potential buyers.  It just isn’t comforting to see piles of clutter everywhere.  Keep small appliances stored instead of out on the countertops.  Remove photographs and knick-knacks.  You want people to envision their belongings in the house.  Clean out and organize the closets.  If there is no reason for something to be displayed, get rid of it.

If you can, remove non-essential furniture to make the rooms appear larger.  Spacious rooms are more appealing to the eyes.  Keep your boxes of junk stored out of sight.  It is a good idea to start figuring out what you need and what you can live without.  It would be a good idea to have a garage sale before you put the house on the market.  If you can’t bear to part with anything, rent a temporary storage unit.

You cannot ignore the outside of the house either.  The outside presentation has a major impact on the buyer.  Clean the leaves out of the drain gutter, don’t let garden hoses or other tools pile up outside.  Pick them up and store them elsewhere.  Make the effort to beautify the front entry.  If the door handle is rusty or the whole door looks junky, get a new one.  Keep the flower beds neat and free from weeds.

Look at the walls and try to put yourself in the buyers’ shoes.  How would you look at the walls in someone else’s house?  Is the paint chipping or is the color outdated?  It would be well worth your time to give the walls a fresh coat of paint.  Nothing makes a room come alive more than a fresh coat of paint.  Give the rooms a little bit of a makeover with new décor that compliments the wall colors.  If you have a garden, bring in some fresh flowers and put them in attractive vases.

Establish a pleasant atmosphere by baking bread or cookies.  Candles add a nice touch along with background music.  Classical or jazz music are both good choices.  You want to convey style and elegance to your audience.  First impressions go a long way.

When trying to sell your house, you should be prepared for a showing at any time.  Last minute requests are very common and can turn into offers.  You have the option to request 24 hours notice before a showing, but in doing so you limit your home’s exposure.  Try to be as flexible as possible.  Accommodating the hectic schedules of a potential buyer will make you and your home look that much better.

It is a good idea to not be present for the showing.  Buyers might not feel comfortable in your presence or they might be afraid to ask a particular question for fear of offending you.  If they can’t view the house fully, they will probably just move on to the next one.  You don’t want that.  They are supposed to fall in love with your house.