Buying a home is one of the largest debts you will undertake and not being prepared in the beginning will be to your own demise. There are many things that surround the purchase of a first home and going in ready to tackle the process works to your advantage.

Here are the top five tips for staying in the know about your first home:

Secure Financing
While it is exciting to start working with a realtor and visiting new homes, your first priority should be money. Have your budget on hand and decide how much you can afford to pay. Contact a loan officer and discuss your financial situation. Once you have been preapproved for an amount, you’ll be able to shop more realistically and save yourself a lot of time and hassle. Experts note that a good ratio of house payments in relationship to your income is one-fourth, meaning that no more than ¼ of your income should be dedicated to the mortgage, taxes, and insurance. You may be pre-approved for more than that but it is unreasonable to go outside of your budget.

Understand the Costs
Obviously your mortgage payment is a big consideration in the process but too many times new homeowners forget the rest of the expense of owning a home. There are down payments and closing costs to consider right away. Plus, you’ll need to factor in the utilities, home maintenance fee, and any potential repairs necessary. Be sure to understand how much insurance, taxes, homeowner association fees, and the like will be added on for your new home.

Check Out the Neighborhood
You may find the perfect house in a not so perfect place but because you think you are in love, you may neglect to consider the big picture. Real estate experts suggest sitting down and making a list of what you really want in a home and a neighborhood. There are many factors to consider such as proximity to the places you go most often, the commute to work, the distance and transportation to the local schools, and how the other neighbors relate. These are very important because committing to live in the new area means facing these issues daily.

Consider Your Lifestyle
While many people do buy a ‘starter’ home when just starting out, it is still a big commitment. If the house only has 2 bedrooms, you really need to consider how many kids you plan to have. That is just one factor in the equation. You’ll need to think about where you see yourself in a few years down the line. Some folks may find they are better off renting in the beginning so they can maintain flexibility for careers and such. But if you think you are ready to settle down, plan ahead for the future and don’t just live in the present.

Are You Ready?
A home is not only a huge financial responsibility it also takes a lot of work. Be sure you understand what it will take to keep things running smoothly. If you have a big yard, are your prepared to cut so much grass? It may sound like a simple question but if you are too quickly overwhelmed by the daily tasks of maintaining a home, you might want to wait. If you are ready to devote your time and money to the investment, call up a realtor.

It seems that the home market is restablizing and home sales are getting back on track. If you are looking to offload your home, it may be the right time to get back on track with doing what is necessary for a successful and quick home sale.

Here are 6 tips you need to know if you want to sell fast:

Find Your PR Person
If you plan to use a realtor, pick one that is enthusiastic about your home and has a track record for being a great sales person. You don’t want someone who will let you languish in the MLS listings. Be sure your realtor knows your area well and has ideas to share about making a fast sale that benefits you.

Get a Home Inspection
A professional home inspection is good for two reasons. For the seller, the inspection can point out potential problems that can mess up a sale. Owners will then have time to tackle the problems before a buyer even knows something was wrong. For the buyer, a pre-sale inspection can build confidence that no major problems exist and that sellers have nothing to hide. A professional inspection runs about $400-$500.

Tackle the To-Do’s
Even the best of homes can generate a list of little things that need to be done around the house. Little repairs like squeaky doors and a new paint job need to be done immediately. If you are capable of the repairs yourself the costs should be minimal. Go over the house with a fine toothed comb. The longer we live in a place, the less obvious small repairs are to us.

Clean Down and Dirty
You need to prepare your home by cleaning like a fiend. From big items like wall-to-wall carpets getting a steam clean to the tub grout getting a toothbrush treatment, you need to clean every nook and cranny in the house. The windows should be shining on the inside and out and all smells should be eliminated. Replace carpets with too many spills or pet accidents.

Get Rid of You
Go through the house and start packing away your personal items. Family pictures, mementos, and knickknacks need to be the first to put into storage. While your house should remain homey, the idea is to get potential buyers to envision themselves living there so give them room to picture their stuff hanging on the walls or placed on the built-in bookcases. If you plan to repaint, use neutral colors and keep clutter in the house to a minimum.

Don’t Forget the Great Outdoors
You may spend a lot of time focusing on the inside of the home but don’t forget the outside. Clean up the garden, the front lawn and the backyard. Remove all of your personal stuff from the outside. Do some minor landscaping to make the house look great in publicity photos buyers are browsing online. Plant flowers, trim the bushes, and keep the grass cut and tended to. Make sure sidewalks and driveways have cracks repaired.

Whether you are concerned about your current home value or that of a property which you are considering for purchase, you should understand what factors contribute to home values. In the current economy and real estate market, many people are seeing home values decline and not always for the obvious reasons. Here we look at what factors are affecting these home values.

Common Factors

There are several factors which most homeowners or buyers are aware of when considering the value of a home. The following common factors affect home prices and value.

• Convenient location- You guessed it-one of the number one factors in determining home value is location. Homes that are in a desirable location have more value than similar properties located in a less desirable locale. Consider school districts, distance to shopping and other amenities as well as points of interest in the area.
• Community- The value of your home is directly affected by the properties on the same street and community. Well maintained homes in a nice location will bring higher property values. Inventory in your neighborhood will have an impact on your homes value. How many homes in the area are vacant? If there are many houses that are for sale or currently not occupied, this will affect your property values as well.
• Upgrades- Remodeled or renovated properties (when done properly) have higher property values than homes that need updating or lack the extra pizazz renovations can bring to the table.

Uncommon Factors

While the previous common factors are generally widely understood, there are also less common- even hidden factors which can affect the value of a property. There is term that is currently being used to describe people who hold mortgages that are higher than the current value of their home. Underwater borrowers as they are called, represent one-third of all mortgage holders and can affect your property value in a negative way. As the homeowners debt rises they could face foreclosure which will hurt not only their financial situation but also the property values of those in the surrounding area. Although there is nothing you can do about the financial position of your neighbors you can at least understand how it might affect your own financial situation.

Thousands of dollars can be lost if you buy the wrong home or sell at the wrong time. By understanding what conditions go into calculating home values, you can make informed decisions when buying or selling a property.

Just a few decades ago, home ownership was normally limited to buying one family home and living there for your entire adult life. Families made home improvements to improve their own comfort and convenience. Today more people begin with what is called a starter home and either move up to another price point or move all together due to changing jobs. With this in mind, home improvement projects have become more of an investment toward the resale value of a home, meaning you must avoid certain mistakes or risk losing money in the long run. Here are a few tips to ensure your home improvement projects add value to your home.

• Know when to hire a professional- There are plenty of qualified contractors out there better suited to tackle big jobs than yourself or a family member. When it comes time to do a major repair or remodel you would be better served to call in a professional than risk doing a less than perfect job. Save the do-it-yourself projects for smaller things that won’t have a significant impact on your home’s value should things to amiss.

• Think twice before adding a pool- Before you invest in a swimming pool, especially an in ground swimming pool, consider whether or not the investment is worth the possible negative impact to the value of your home. Potential buyers might now want the added expense of a swimming pool making it a con versus a pro when it comes time to sell your property. In addition to resale issues, swimming pools require an investment of time and money to keep them up and running in good order. This is “improvement” that might end up costing you more money than you are willing to spend.

• Personalized remodels- Home owners have every right to decorate and remodel their homes to suite their needs and personal taste. Unfortunately what looks great to you might not appeal to future buyers. Unless you plan on living in your current home for many years or the rest of your life, you might want to stick to less personalized remodels to retain value when it comes time to sell your home. The same can be said for jumping on the band wagon and following the latest style. While this may appeal to buyers looking for a home today, trends change and what works today will likely be considered “dated” in just a few years. Consider this when making design chooses.

Making the right home improvements can be a great way to add value to your home and convenience to your day-to-day life. For consumers who have plans to move in five or ten years, it is important to keep future home buyers in mind when making major changes to your home or risk a property that languishes on the market. If home improvement projects done today cost you tens of thousands of dollars at the time of sale, they aren’t really improvements after all.

In today’s economy, are reverse mortgages the way for seniors to recoup their lost retirement funds? In some instances the answer may be yes and the numbers do prove that retirees are leaning toward using reverse mortgages to bolster their flagging funds. HUD states that Home Equity Conversion Mortgages (reverse mortgages) have increased 77% percent in the past year. A lot of this is due to advertisements and television commercials that make them appear to be the simple way to get additional money. What many seniors do not realize is that they will be hit with some pretty high costs for the convenience.

Front-loading (or up-front) costs are extremely high with reverse mortgages. The closing costs are the highest in the industry and in addition the home-owners will still be responsible for real estate taxes, home repairs, home owners insurance, and mortgage insurance which will be required. These costs can add up to much more than what was anticipated when reverse mortgages were looked at as a solution. One other thing most seniors do not consider, reverse mortgages can impact Medicare benefits because the money generated is considered to be an asset.

A home-equity loan may be a better choice for some people. The rates will be lower and the remaining equity in the home is not subject to interest as it would be with a reverse mortgage. But, using the equity in the home should be a last resort decision for everyone. Many seniors will find themselves encumbered with bills far greater than the relief the loan or reverse mortgage generated. The best thing for a person considering a reverse mortgage (or any home equity type loan) to do is seek advice from a consumer counselor. These counselors are always unbiased and are usually well-versed in the services and opportunities available within the community. Many people intending to get a reverse mortgage have found that there are resources available for seniors that can alleviate the need to even consider a reverse mortgage.

Reverse mortgages are a viable choice if there are no other choices available. But there are a lot of additional costs and responsibilities that come along with the service. With unscrupulous people out there trying to separate seniors from their money every caution should be taken. Seniors need to be proactive and ask questions and continue asking them until they understand all aspects of the loan. Taking an advocate into loan negotiations will provide a buffer between being pressured into something that may not be fully understood. Caution should always be used regardless of how attractive an offer may appear to be at first glance.

There are many reasons a person may relocate throughout their life. Certain occupations or careers require individuals to move regularly. Other individuals may move out of their apartment or even their city in a quest for better opportunities or to follow personal goals. Regardless of the reason behind your relocation, there are a few things that should be considered before packing up the moving van.

• Location, location, location- There is a reason why real estate agents preach the importance of location. Paint colors can be changed, flooring materials can be upgraded but you cannot change the physical location of your future home. Look for a place that reflects your personal needs, for example close to public transportation or within walking distance of shops and restaurants. If you are determined to live in a very popular location, understand you will be paying for that zip code.

• Create your new budget before moving- As many people learned during the recession, sometimes numbers do not work out in real life as they do on paper. Even so, it would be unwise to move without first looking at your income and expenses (including moving costs) and creating a budget for the first few months. Of course no one can anticipate all expenses however certain costs are standard when moving. Security deposits, down payments, hook up fees for cable, Internet and phone services are all normal expenses people expect when moving. It is important that you can afford the initial costs as well as long term costs before you make your move.

• Employment opportunities- If you are relocating in search of better employment opportunities or if you are moving for your current job, it is important to first check out employment statistics in the area you are considering. There have been occasions where a person transfers to a new location for work only to find a month or year later that their job is not longer secure. If that happens, are their other opportunities in the area? If you are moving to improve your employment situation, have you researched available jobs before making your decision? You should spend some time reviewing salaries, turn over, and opportunities for growth for the area you are moving. This increases your chances of securing or remaining gainfully employed.

• Protect credit and identity- Credit card fraud and identity theft are no longer considered isolated incidents that happen to “other” people. When you relocate there are dozens of opportunities in which your personal information could be compromised. All personal paperwork should either be packed (securely) or destroyed (shredded). Do not leave any identifying items behind and make sure all utilities are paid in full and taken out of your name. You do not want to get a past due cable bill forwarded to your new residence six months after you have moved.

Americans will relocate an average of eleven times in their life. Ideally each move will offer new and exciting opportunities for personal and professional growth. Ensure your future growth by carefully considering your new location. Financial missteps can be avoided with a bit of planning and forethought. Prepare in advance and eliminate the stress of moving to a new location.

We all watched as the housing market took a terrible tumble along with the rest of the economy. It is not over with yet as there are still those who are losing their jobs and have no way to make their monthly mortgage payments.

If you are a part of this group, then you know what it is like to be caught in the prospect of a foreclosure. The first thing that you want to accomplish is to get back on track with your payments. How that happens depends on several factors, the most important of which is the assistance that you can find from your mortgage holder.

If you are behind on your mortgage payments, there are a few things that you can do to help you get caught up.
The FTC says that first you must know your mortgage: “Do you know what kind of mortgage you have? Do you know whether your payments are going to increase? If you can’t tell by reading the mortgage documents you received at settlement, contact your loan servicer and ask.”

Contact Your Mortgage Company – There is help available from mortgage companies designed to keep their customers from going into foreclosure. They have as much incentive as do you in getting you back on track, because if there is a foreclosure, they stand to lose money in the process. If they can help you get back on track, then they have a chance of reviving the loan payment process and keeping the mortgage intact until you pay it off, or until the house is sold and the proceeds are used to satisfy the loan. Call and ask about forbearance programs and mortgage modifications. If they refuse to help you or appear to be less than willing to provide assistance, then you can contact makinghomeaffordable.gov for help.

Increase Income and Reduce Expenses – The reason that these are mentioned as one item is that they work hand-in-hand and are successful when approached with equal intensity. If you lost your primary job, your first priority is to find a job. Not your ideal career job (although that would be great if you can do that), but a job that will bring in an acceptable income. Then increase your income further by taking on a part-time job or multiple jobs, and begin to make your normal payments plus extra to pay back that which is in arrears on your mortgage. If you have multiple family members who are able to work, they might have to take jobs to help out as well. If you are not too far behind, most mortgage companies will work with you on this basis and even be willing to forgive late fees in some cases. Doing this in addition to reducing your monthly expenses can help you get through this time.

“The longer you stay in your house, the better the chances of making it through this down cycle.” So says Karen Blumenthal in an article in the Wall Street Journal.

Sell Your House – This is can be difficult depending on where your house is located, but it can work. Some have done this and have gotten enough from the sale to pay off the mortgage. Contact a local real estate agency to find out what houses are selling for in your area and see if you have an opportunity to get a fair market price which will pay off the loan. Then, until your income stabilizes and you can get back on your feet financially, rent a house or apartment.
Karen also says, “If you need to sell the property and can’t afford to cover the shortfall, your lender may agree to a “short sale,” in which you sell at a price below the mortgage amount. This is a much more complicated transaction to pull off than a regular home sale, though, and it may hurt your credit score if the lender reports that you failed to pay off the whole obligation.”
Look at Credit Counseling – A structured plan to re-pay debt is looked upon as a good thing by most creditors. Just be careful in selecting a company to work with as there are some unscrupulous ones out there. Also, creditors are not required to take offers or make deals with anyone who represents your financial interests. Even good counseling agencies are not 100% successful. But, it is worth a try. In the process, you will learn a lot about your finances and how to better manage your money.

Typically, mortgage repayment schedules are developed so consumers are making one monthly payments to satisfy their mortgage obligation. For homeowners, this means making twelve payments of the same amount each year throughout the life of your mortgage loan. This method is great for consumers who can easily budget their monthly mortgage payment and find that there are no surprises. However, while paying in this structured manner will allow you to meet your financial obligations towards your mortgage, making one simple change to the way you pay your mortgage can save you thousands.

Make the Bi-Weekly Switch
By changing from making one lump sum payment a month to a biweekly payment system, you could literally cut years off of the length of your mortgage. The reasoning is simple: there are 52 weeks in each year. By paying biweekly, you increase your 12 payments a year to 26, meaning you will end up making two extra payments in a year which is equal to one full monthly payment extra. The best part of this plan is that the overage you have paid in the course of a year will be applied directly to your principal, meaning your will pay less in interest because you will pay off your loan faster.

How To Begin
Before considering this biweekly method and certainly before altering your payments to your mortgage company, be sure to speak to your lender about your plan and if the lender will even accept such payments. Most will but some will not. Those that do will need to be asked specific follow up questions such as whether or not the overage will be applied directly to the principal as well as if the lender will apply each payment separately upon receipt or will they wait till both payments have come in before crediting your account. If they credit in one lump sum, making biweekly payments will then have no savings benefits. You also want to ensure that if your lender does accept biweekly payments that will go directly to the principal on the mortgage that the lender will not penalize you for paying off the loan early, which some lenders will do. Provided you are reaping benefits of the biweekly payment plan, you can decide if the plan will work for your own financial situation before making the switch. Also, you must be cautious of agencies that are promoting a service or program that claim to assist you with making biweekly mortgage payments. These companies will advertise they can do the conversion work for you for a fee. However, the services are completely bogus and there is nothing in the process that can not be done by the borrower themselves. Avoid any ad or agency that is offering such services as they will only run away with your money and not worry about fulfilling their promises or your financial obligations.

Some people are under the impression that only home owners need insurance on their home. This is completely untrue. It is very important for renters to invest in renter’s insurance in order to protect their property and valuables. There are a few different things that are covered under renter’s insurance. Here are a few examples which should help you in your decision to invest in renter’s insurance:

Disaster – If for some reason you are put out of your home, like a fire or a flood, renter’s insurance will help you with some of the costs for temporary shelter. This way you aren’t footing the entire bill to stay in a hotel until you find a more permanent residence.

Possessions – If your home is burglarized or destroyed, renter’s insurance will help to cover the cost of replacing your items. This includes electronics, furniture, clothing, and other possessions. Make sure to look into what your policy covers. While most policies will cover the replacement of your possessions, you may have to get an extended policy in order to protect your more valuable possessions (like jewelry).

Injury and damages – If someone is injured on your property, they may feel the need to sue you for damages. With renter’s insurance, different bills having to do with the damage or injury will be partially paid off for you. This may save you a lot of money depending on the extent of the damage or injury. It’s also great because renter’s insurance can cover damage done at other people’s property as well as your own.

Depending on the type of coverage you purchased, you may be covered in places other than your home. You could be covered while on vacation, down the street from your house, or while in someone else’s apartment. Also, some policies cover items stolen out of your car. This is not necessarily available on all policies, but check into your specific policy and see what is included.

Investing in renter’s insurance can save you a lot of money, especially if for some reason you have to deal with damage to your home or possessions. While the person you are renting from may have homeowner’s insurance that pays for damage to the house itself, you need renter’s insurance if you want to protect the items inside your home. You may not think you have much, but if the time comes that you have to replace any of it, you’ll see really quickly how much your things were really worth.

Selling a house in the current market can be a bit scary for home owners. The market is flooded with properties, buyers face difficulty securing financing and many people are simply not interested in making a big investment in the current economy. Unfortunately if you find yourself in a position where delaying the sale of your house until more these conditions improve, you will have to learn what mistakes to avoid in order to get your home sold quickly. Here are a few of the common mistakes sellers make that prevent a quick sale.

• Letting emotion get in the way- While it is not uncommon for people to live in several different residences throughout the span of their life, there are certain houses that we truly call home. Whether you are selling the house where you grew up or the home in which you raised your own children, it is important to avoid letting your emotional attachment to your home get in the way of sale. This means if a potential buyer comments on renovations or heaven forbid-demolition during the walk through, remember that once you sell the house it becomes their home to do with what they wish. The only thing that you should consider from potential buyers is their offer, not their intentions.

• Setting the right price- It can be challenging to set the right price in the current economy and housing market. Now more than ever it is important to look at your house objectively and compare it to other properties currently on the market. If your home is priced similar or higher than the house down the street that hasn’t sold in the past few months, chances are your price is going to turn off potential buyers as well.

• Failing to showcase or stage your house- Some people are in such a rush to sell their home that they put it on the market “as is” without putting the time, energy or money into small repairs or renovations that would easily pay for themselves ten times over. Just as you would probably prefer to buy a product in good condition, so does a potential homeowner. Small repairs, renovations and the proper staging of your home can make the difference between an offer or watching a potential buyer walk away.

• Pets- There is no doubt that we are a nation of pet lovers. Millions of houses are the homes to cats, dogs, birds and various other household pets. While you may love your pet, potential buyers may not share the same view. Even the cleanest cats and dogs can leave behind an odor in addition to hair, dander and other evidence of their presence in your home. Whenever possible, consider having your pets visit with a trusted friend or relative while preparing your house for showing. Consider having your home professionally cleaned as the dander from pets is a common allergen which can “stick” to fabrics and other surfaces for up to six months after the pet is removed from the property.

These are just a few of the common mistakes sellers are making in the current market. It is important to remember that unlike a few years ago when sellers had the luxury of picking between several bids or holding out for a better offer, homes today are languishing on the market. By making every effort to prepare your home and having realistic expectations you are will be more likely to find a buyer for you house.