Mistake #1: Not knowing how much they can afford before they make an offer. The easiest way to avoid this mistake is to get pre-approved for a mortgage by a Lender so you know in advance exactly how much you can afford.   Most pre-approvals are free and it will give you a basis to make a more informed purchasing decision when you find the house you like.   Mistake #2: Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes.   Check with your accountant before you make your final decision on which mortgage you're going to choose.   Your CPA can tell you what the long-term effects will be on your income, your taxes, and the equity you build in your home over time.   Most people aren't aware that with a standard 30-year mortgage they'll be paying ... 07/29/2008

If you can't account for every dollar you spend, take solace in knowing you're not the only one.  Nearly half of us say we lose track of about $2,340 per year, according to a study by Visa, Inc.  The money simply "disappears," and we're not really sure where it's gone, the study's authors say.   Nearly half of us report spending about $120 in cash per week, and losing track of $45 of it.  Men under 35 are the biggest "mystery spenders," reporting that they lose track of $3,078 per year, or an average of $59 per week, mostly during a night out.  Women fared a little better, reporting losing track of $2,709 per year, or $52 a week, mostly while out shopping.   Visa's survey of 2,036 adults found that 48% of us suffer from this "mystery spending."  Check out this breakdown of when the mone... 07/28/2008

Pablo's Homes News When Less Is More    The Battle of Gettysburg, July 1 to 3, 1863, is considered one of the bloodiest of the American Civil War.  In November 1863 a cemetery was dedicated at Gettysburg, and the highlight of the ceremony was speaker Edward Everett, who spoke for two hours.  His oration was later praised on the front pages of the nation's newspaper.   Another speaker followed, who delivered a two-minute address.  Here is what he said, in part:   We can not dedicate, we can not consecrate, we can not hallow this ground.  The brave men, living and dead, who struggled here have consecrated it far above our poor power to add or detract.  The world will little note nor long remember what we say here, but it can never forget what they did here.   It is for us the living, rath... 07/28/2008

When building or buying a home, it helps to decide just exactly what you NEED and what you WANT.  Once you have a price in mind, THEN start looking.  If you do it the other way around, you'll fall in love with a home that you can't afford and none in your price range will ever measure up to it.   Location, location, location!  Don't you wonder why people always ask about location first?  Well, it's the hardest thing to change about a home once you buy it.  However, there are things besides the neighborhood that you need to consider.  Things like size of the lot - do you really want to mow those five acres or is it worth it to be that far from those nosy neighbors?   Dinner anyone?  Think about your lifestyle in relationship to the kitchen and dining room. Do you actually cook?  Do you n... 07/27/2008

Buying a home must up there with public speaking and the remake of The Exorcist for frightful experiences, but many of us will buy a home, speak publicly and watch that movie again and again in our lifetimes.  By giving you a few of the "behind-the-scenes" secrets, we hope to help you deal with the three things that scare you most about buying a home.  The Cost   The greatest fear that people have about buying a home is being able to afford it.  This is what keeps us awake at night - calculating and recalculating how many lunches we have to pack instead of going out with the gang, to be able to make the mortgage payment.   The behind-the-scenes secret to dealing with this fear is working with a great Lender and getting pre-approved BEFORE you start looking at homes, and being realistic ... 07/26/2008

Most people think when you get a mortgage you're stuck with it for 30 years.  What they don't realize is that using a couple of easy and painless ways to make some extra principal payments can cut years off the life of your mortgage and save thousands of dollars in needless interest costs.  Here are a few easy strategies you can use:  Round Up To the Nearest Hundred.   This is an easy strategy to take advantage of, and the results are dramatic!  Let's say you have a mortgage of $100,000 over 30 years at 8% interest.  The monthly payments would be about $734 a month.  Now, let's see what would happen if you rounded that payment to the next $100 by increasing your payment by $66 extra each month.  By paying $800 a month you'll shorten the length of your mortgage by 7½ years.  Just this on... 07/26/2008

Many people are involved in the home buying process.  These professionals have based their careers on helping you find and purchase the home of your dreams.  But do you really know just what they do for you?  Real Estate Consultant   The first person you'll probably become involved with when you begin your search for a home is the real estate consultant.  This term includes real estate agents, salespersons, brokers, Realtors, listing agents, and buyer's agents, all of whom must be licensed to serve you.  The agents and salespersons work for a broker.  Those licensed to sell may represent either buyers or sellers.  However, listing agents typically represent only sellers, and buyer's agents represent only the buyers - so as to avoid potential conflicts of interest.   Only those who are m... 07/25/2008

We've all heard the horror stories about movers who didn't deliver (literally) what they'd promised, or the priceless vase from Great Aunt Edna that got broken in a move.  Here are seven things to help you find the best mover that you can.   Identify only licensed, insured, and bonded moving companies. Think about what you're moving.  What is it worth to you to know that it will get to your new home safe and sound?  Licensed, insured, and bonded companies take the extra step to ensure that your things get to your new home, because they're held responsible if they don't.    Ask for estimates from two to three companies. Shop and compare prices.  Invite a mover's representative to inspect the contents of your home. They should be able to tell you how long the move will take, what it'll co... 07/25/2008

You've found your dream home, so you'll make an acceptable offer and live happily ever after...unless another buyer beats you to the punch! In a competitive marketplace, this can not only happen, but can potentially have a far greater impact than any negotiating gambit the seller would hurl your way.  Yet, more buyers erroneously fear the seller more than they do other competing buyers! That's why it's important to make sure your offer strategy includes a strong stance against other potential buyers and their offers.  There are several factors that make buyer competition a threat in today's real estate market. It's a sellers' market.   First, in a competitive market with relatively few quality properties available, "dream home" category houses will become hot properties - often as soon ... 07/24/2008

When you get a mortgage, there are three important terms for you to remember. Interest Rates Points APR I've combined these three terms here because they're related, and you'll understand them better if I explain them together.   Interest Rate:  "Interest Rates" are the price that Lenders charge for the use of their money.  So, when interest rates are high, it's because Lenders are charging you more to use their money right now.    Again, it's a trade-off between now and later.  Lenders are only going to give you so much money to use over the next 15 to 30 years (the life of your mortgage).  They work backwards from that figure using interest rates. If you have a higher interest rate, you have less money to spend now.  If you have a lower interest rate, you have more money to spend now.... 07/23/2008

Lenders approve loans based on their impression of your ability and INTENT to pay it back.  To figure this out, they look at five things:  creditworthiness, income, job longevity, job stability, and future income prospects.  We'll tell you how to make sure you look good in each of these things, so that you'll get a "YES" when you want to borrow money for your new home.   1.  Creditworthiness Creditworthiness is your history of borrowing and repaying against things like loans, credit cards, rent, and whether you've ever filed for bankruptcy.  Find out what credit bureau the Lender uses, then call or visit that same bureau for a copy of your credit report.  Some are even available online.   This is to make sure that there are no errors or surprises that you'll have to explain to the Lende... 07/22/2008

Here's a quick note to let you know how I can help you or anyone you might refer to me.              Aaron and Fallon wanted to buy a new hybrid car.  They knew it was environment friendly (with an engine running on both gasoline and electricity), and with the rising cost of fuel, they'd save money at the pump.  Aaron and Fallon loved the idea of owning one of these vehicles, but weren't sure how, in addition to their mortgage payments, they could afford to make such a purchase.              I'd helped Aaron and Fallon purchase their house three years ago and they asked me to look into refinancing their home.  After doing my research, I found that during the past three years, a good amount of equity had built up in their house.  With that knowledge, instead of refinancing I suggested ta... 07/21/2008

Every day of the year, but especially as the holidays approach, designating a driver as part of planning an event where people will consume alcohol is the responsible thing to do.  A designated driver (DD) is someone who:   Agrees to drink non-alcoholic beverages only. Takes care of other members in his or her group. Ensures all group members get a safe ride home. Plans ahead!   How does it work?    Designate DDs for house parties, socials, evenings at the bar - anywhere people consume alcohol.  You just need people having fun, a car, a sober driver, and a plan.   Licensed Establishments.  Many licensed establishments support their customers' decision of having a DD by offering them free non-alcoholic drinks.  Some require a group of at least four people in order for the DD to receive f... 07/19/2008

No, actually, it's more important.   In her article "Twenty-Five Top Tips for Tip-Top Communication," personal coach Grace Judson (www.svahaconcepts.com) offers a variety of communication tips you can try out at home and at work:   •·         How you talk about yourself dictates how others will communicate with you.  Do you put yourself down?  Call yourself names?  If you disrespect yourself, others will, too.   You don't have to agree with someone to understand their viewpoint.  Seeking to understand another demonstrates respect, and gives you insight into how to support and please them.   Your personal style choices send a message.  This includes the color, fit, and cut of your clothing and shoes, your hairstyle and jewelry, your makeup, your perfume or aftershave, your teeth and fing... 07/17/2008

Did you know that July is the month during which one of the most famous battles of the Civil War took place - the Battle of Gettysburg?  Here's a story about Gettysburg and the importance of victories, both large and small:  When he found himself near Gettysburg on business, he decided to take a day to wander the spacious acres of that memorable Civil War battlefield.  It was in late June and near the anniversary of the battle (July 1-3, 1863), so caretakers hadn't yet harvested the wheat or worked in the famous Peach Orchard.  He spent the entire day hiking from point to point, reading the history of the heroics of our ancestors, and musing about the inhumanity of man to man when people are fighting for a cause they believe in.     It wasn't the Union stand at Little Round Top that imp... 07/16/2008

When you're looking for a home, ask yourself these six questions to ensure that it meets your basic needs.  1.  Is it within the right distance to work, church, family, and friends?   One of the first things a real estate consultant will ask you is about location.  Think about where you like to shop, where you work, where you worship, and where your friends and family live.  Some people are willing to commute a little further to work in order to live closer to family and friends.  Others, particularly those who like to sleep in, prefer to live closer to the office.   2.  Does it have enough bedrooms and bathrooms?  How many children do you have, or do you plan to have others while you're living in this home?  Do you have three teenaged daughters?  If so, you probably don't want to be sh... 07/15/2008

Cracks, bulges, stains, odors, squeaks, and tilting are easy to spot and can mean a little or a lot of trouble in any home.   The first sign of trouble that you should look for is in the foundation.  You can do this by looking around the outside of the home.  If you can see cracks, bulges, mold, wood rot, or listing there may be severe problems with the foundation.  Bearing in mind that all concrete and asphalt will crack as it settles, hairline cracks will be acceptable; anything larger is not.  These things could mean a large foundation settlement because of soil instability, or that the builder didn't use steel reinforcements, indicating potentially slipshod work throughout the home.  You'll have to look high to see the second sign.  Are shingles rough, broken, curled, bubbled, warpe... 07/15/2008

When an individual's income starts growing and they manage to set aside some savings, they commonly experience what may be considered an innate instinct of modern civilized mankind.   The desire to spend money.  Since North Americans have a special love affair with the automobile, this becomes a high-priority item on the shopping list.  Later, other things will be added and one of those will probably be a house.  However, by the time home ownership has become more than a distant and hopeful dream, you may have already bought the car.  It happens all the time, sometimes just before you contact a Lender to get pre-qualified for a mortgage.  As part of the interview, you may tell the loan officer your price target. He will ask about your income, your savings and your debts, then give you h... 07/15/2008

1.  Decide to buy a home.  That sounds reasonable, doesn't it?  Yet, so many of us are really "just looking" rather than seriously considering changing the location of our home.  Why is it that you want to find a new home?  Has your lifestyle changed enough to warrant this type of investment?  Until you identify your NEEDS and your WANTS, you'll find it very hard to find just the right home for you.  2.  Find a great real estate consultant.  Once you've decided to buy a home, find a great real estate consultant.  What you're looking for is a Buyer's Agent.  This means that the consultant represents YOU as the buyer, rather than the person selling the home.  They will have YOUR best interests at heart. Really good consultants know their markets, and will help you find the best match for ... 07/15/2008

The stock answer given to this question is - if you rent and have cash for a down payment, you can purchase a home.  But what if you don't rent?  Then, here's the simplified version of what a mortgage broker would do with you.  Step One:  Annual salary ÷ 12  What is your gross monthly income from all sources?  If your annual salary is $75,000, divide this by 12 and you'll see that your monthly income is $6,250.  Step Two:  Monthly salary x percent you want to spend  Brokers and financial planners will recommend that you spend anywhere between 25% and 36% of your monthly income on household expenses.  We're going to use 36%.  $6,250 x .36 = $2,250 Step Three:  Calculate your debt  Add up your current monthly debt.  This includes things like a car loan, insurance, school loans, credit car... 07/14/2008