Should You Buy A Home?

It's the American dream -- a home of your own. Too bad the American reality is much different -- a mortgage, repairs, insurance and added responsibilities weigh on every homeowner.

It is a big step to take. Whether you are a renter looking for your first home, a growing family needing a bigger space or a retired couple looking for a peaceful retirement, buying a home is a daunting task. There are signs to let you know that you are ready to buy.

Sign #1: Finding money isn't an issue

Sounds funny, doesn't it. Most consumers have a lot of trouble finding extra money. But if you have the money for a down payment and closing costs, then you are ready to buy. The down payment will range anywhere between 3% and 20% of the property value. You should aim for 20% down for several reasons. First, you will owe less, have less of a payment and pay back less in interest. Second, you won't have to pay Private Mortgage Insurance (PMI or MI). If you pay less than 20% down, you will be required to pay for PMI until you pay down your mortgage principal under the 80% mark.

A lot of people forget to factor in their closing costs. You will have to have cash on hand to pay for points, taxes, title insurance, financing costs and other prepaid or escrowed items. You can expect closing costs to hit anywhere between 2% and 7% of the property value. I suggest being on the safe side and making sure that you have the 7%, just in case. You should receive an estimate of the closing costs (a good-faith estimate) from your lender within three days of applying for a mortgage. But be aware that cloudy titles and other circumstances can cause your closing costs to be higher than expected. The estimate is based on a simple, pain-free closing.

Sign #2: Knowing your finances

Do you know your finances front and back by memory? You should. It's part of financial management that comes with successful habits that you practice regularly. Budgeting, debt reduction and savings are a part of your management. For example, proper management results in a person who can, within five minutes, tell you their net worth, how much they owe, who they owe and how much they have in savings. Someone really on their toes can tell you their recent credit score as well.

If you know how much you can afford, you are ready to buy. Freddie Mac suggests that your monthly payments be less than or equal to 25% of your gross income. But you should look at your debt and other expenses when deciding how much of a home to purchase.

Sign #3: No curves in your credit

If your credit report is a straight and narrow line to a great credit score, then you are in good shape. One of the most important things a lender will look at is your credit report and score. This is affected by how much debt you have, how much credit you have available and whether you pay things on time.

Well in advance of starting to consider buying a home, check out your credit. Get a report from each of the three credit reporting companies (Equifax, Experian and TransUnion), because they each can contain different information. Take your score with you when you apply so that the lender knows that you are aware of your credit situation. If you've applied for a lot of loans in the past, you may have encountered the occasional lender that likes to say you have marginal scores, when in fact they are perfect. This is simply to get you to pay a higher interest rate on your loan.

There are many other signs that you are ready that are more personal, such as the longing for a place of your own. We all find that our timing for making the move is different. Some of us buy as soon as possible and for some, it is best to remain a renter. But make sure that you aren't just making an emotional decision, but a financial one as well. Be smart and that American dream and American reality may fit well into your life.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today!

Lakefront Property For Sale

Lakefront property for sale is a highly valuable commodity. A life at the lakefront is just like your own personal heaven. A lakefront property cannot be compared with any other property. Hence, the delight of living next to lake can be experienced only by owning or renting lakefront property.

Today a huge number of lakefront properties are available for sale. Some are along the world's most beautiful lakes, while others are on small and quiet ones. Lakefront property is common in the USA and Canada, since they have about 3,000 lakes.

Some lakefront properties set themselves apart from the rest. Less than a 4-hour drive from the areas of Washington, DC, Pennsylvania, Virginia, and New Jersey is a village at the Bear Trap Dunes, which was given the 2002 Development of the Year award for some of the best lakefront property in the area. Near Delaware, elegant lakefront property is available next to the Indian River Bay.

In Florida, the Hammock Beach, situated at the Palm Coast, is enclosed by very old oak hammocks and the Atlantic Ocean. Here one has a chance to obtain pre-construction pricing. Then, moving towards the Southeast, there are beautiful lakefront properties in the Mississippi, such as the Pickwick Pines Resort in Iuka and the Old Waverly in West Point. These provide an amazing experience of stylish living. A lakefront property on Lake Wylie, near Charlotte, North Carolina, is The Sanctuary, which is a natural reserve society of less than 200 home sites. The Goodfield Landing, Decatur, is in Tennessee.

Lakefront Property provides detailed information on Lakefront Property, Michigan Lakefront Property, Lakefront Property For Sale, Wisconsin Lakefront Property and more. Lakefront Property is affiliated with Lake Havasu City.

Home Buyers Does Your Agent Work For You?

As a buyer, you may be looking at many properties -- those listed with an agent as well as those sold privately, by owner. Let's say you call a real estate agency regarding a listed property you have found in MLS (multiple listing service), the newspaper, or by driving by. Traditional agencies will offer you 'buyer assistance', meaning that they will show you properties, direct you to mortgage lenders, etc., all without a contract.

The agent you meet who shows you that property will be anxious to show you other properties, of course. You begin to feel that this agent is your agent. NOT TRUE. This agent works for the agency that listed the property, and most likely is working for the seller of the property, not you. Anything you say may be carried back to the seller at any time.

Agents may call themselves many things according to state regulations. In Massachusetts, for example, the listing agent is the agent who obtained the listing from the seller. The selling agent is the agent who actually makes the sale. In order to better understand this concept, bear in mind that a real estate agency makes the most money when one of their listed properties is sold by an agent in house.

Most properties are not shown or sold by the listing agent. Although the homesellers may have spent considerable time with the listing agent discussing the fine points of their home so that they will be knowledgeable when showing it, the property will most likely be shown by agents who are totally unfamiliar with their home. Remember, whether talking about a listing agent or a selling agent, unless you have signed a contract with a buyer's agent, their allegiance is always to the seller.

As if this isn't complicated enough. using Massachusetts regulations as an example, a broker can work for both the buyer and the seller on the same property provided the broker gets the consent of both parties and provides each with a written notice of the relationship. In this case, the broker is considered a disclosed dual agent. This broker owes both the seller and buyer a duty to deal with them fairly and honestly.

In this type of agency relationship, the broker does not represent either the seller or the buyer exclusively, and neither party can expect the broker?s undivided loyalty. Realistically, it's hard to imagine that properties are not discussed over lunch or between agents sitting at the next desk. Undisclosed dual agency by a broker is illegal. The agent must present the buyer with an agency disclosure form upon first meeting to discuss a particular property.

The use of an agent becomes further complicated when the subject of seeing properties offered by owner is brought up. Unless the agent that is showing you properties is a buyer's agent, the only way he/she can get paid is to get the private seller to list the property, something that is not likely to happen. You don't need an agent to see a for sale by owner property and some sellers prefer not to negotiate with anyone but the buyer directly. If you do feel that you need representation, the one agent that has loyalty to you, the buyer, is a buyer's agent.

A buyer's agent (ie. buyer broker) represents you, the buyer, and never the seller. Some buyer brokers are known as exclusive buyer brokers/agents. Exclusive buyer brokers do not list property - period, nor are they housed in an agency that does. The buyer broker's commission, typically 3%, is generally accommodated in the selling price of the property, paid at closing. The National Association of Exclusive Buyers Agents (NAEBA - www.naeba.org) is a good resource to locate buyer's agents in your area. Buyers, remember that a buyer broker is able to show you listed properties, foreclosures, new construction, and for sale by owner properties.

A word of caution....make sure you tell the agent that you want to see ALL available properties without regard to who pays the commission. We have often heard of overly aggressive buyer's agents who will not inform their buyers about a property unless the seller agrees up front to pay their commission. This behavior is unwarranted as the buyer has already agreed to pay any commission due.

NOTE: If you are currently working with a buyer broker and you are looking at a for sale by owner property, please let the seller know up front. Don't wait until the negotiations are underway to bring in representation. It could easily kill the deal. Most sellers are very open to showing their property to you and your buyer broker - just don't assume they'll pay your agent's fees.

Liz Provo, is the publisher of Picket Fence Preview For Sale By Owner Magazine, distributed throughout Western Massachusetts and online at www.MA4salebyowner.com

Website: www.MA4salebyowner.com Phone: 413-529-2971 Email: info@ma4salebyowner.com

Permission to use this article is granted as long as the author information and website link is included.