DON'T BUY A HOUSE!! (Till You Do These 6 Things First.)

By Doc Schmyz

Buying a home, especially if it's your first one, is often quite scary. There are so many things you don't know and terms you've never heard before. People often fear what they don't understand. In fact, studies have shown that this fear literally prevents some people from taking the first steps to buying a home.

For most people buying a home is the largest financial purchase they will make. If it is your first time be sure to take advantage of all the program information and home buying programs you can.

Do some research and be fully informed before beginning your search for a home. Here are the six steps you should take before buying:

1) For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.Think about what it will be like to be a homeowner.

2) Have an idea about your credit right from the start. Your FICO score will normally be between 400 and 850. the higher the score the better your funding chances are. Get a copy of your credit report and review it. Look for any discrepencies and report them to the agency. In some cases you may want to use a credit repair agency.

3) Know your finances. A down payment is a big barrier to homeownership. There are, however, many different loans/mortgages out there that offer low down payment options. You should work with a quality mortgage broker or banker to find out what would work best for your situation. And don't forget the government...a HUD loan is usually a great way to get into your first home also. Again, check with your broker or banker for more specifics.

4) When meeting with a good mortgage broker or banker, ask them to pre-approve you, not pre-qualify you. Pre-approval is an actual underwriting of your file (whether manually or auto-underwritten) and will let you know how much you can actually spend on a house and up to what rate you would be able to go to. This means, of course, that you will have to provide your income documentation, credit, and various other items required by the lender to actually underwrite your file. When you are ready to make an offer on a home, you'll have more bargaining power over someone who is just pre-qualified, which just means someone has looked over your info and thinks you would qualify for financing.

5) While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. They should have an idea of what would be available to you. There are many programs out there run by counties and cities and other governmental agencies. The trick is to know about them, first, and then to see if you qualify for them.

6) First-time home buyer classes. Many lenders and Realtors offer home buyer education classes. They are usually a few hours long and will educate you through the process of buying a home. From applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home.

These six steps will help you on your path to owning a home. Just remember to ask LOTS of questions. Talk to friends and family who are home owners and see who they trust. Buying a home doesnt have to be scary as long as you understand what your getting into. - 23221

About the Author:

Doc Schmyz has invested all over the US. He built a free website shares Real estate investinginformation for all over the US. Find Real estate investing information by state

Is a Debt Consolidation Loan for You?

By Layla Vanderbilt

Choosing to get a debt consolidation loan is a big choice that you hopefully won't have to make very often. Debt consolidation loans are very handy tools for getting out of debt. Many people have used debt consolidation loans successful. However many people have also fallen victim to the temptation of debt consolidation loans as well. It's important that you determine if you should get a debt consolidation loan and for what reasons you're getting it.

It's important that you factor in if you have bad credit or not. This is because many of the loans that you will qualify for with bad credit will be secured loans. This means that you will have to use a house or vehicle as collateral and if you fail to pay the loan then you will lose whatever item you put up for collateral. Thus it's important to identify why you're getting the loan so that you don't lose something of even greater value. If you happen to qualify for an unsecured loan and you're trying to pay off your debts and not your current bills then you should opt for the unsecured loan. In the event that something unpredictable happens, such as you losing your job, you won't have to worry about your home being in jeopardy. Finally you should ensure that the monthly payments that the loan will cost will fit into your budget without it becoming a problem as you don't want to default on the loan.

When getting a debt consolidation loan it's equally important to look at how you got in debt. Many people fail to look at how they got into debt and then get further in debt after they get their loan. If your finances are in bad shape because of several past bills that you no longer have then a debt consolidation loan will work well, however if your finances are in trouble because of your current bills then a debt consolidation loan won't help you as you won't be able to pay the loan or your bills. You should consider moving, switching jobs, or getting a second job to help supplement your income.

Many people don't realize the purpose of a debt consolidation loan. Rather than getting rid of all the old debts they have, they use it to pay current bills as a supplement for income. This in turn makes their situation even worse and puts them in a position to never be able to get out of debt. This is especially true if they default on the loan. It's better to use a debt consolidation loan properly then use it to pay for month to month expenses.

For those who have a lot of debt a consolidation loan is a good answer to their problems. Before you get the loan make sure that you can make the payments and that it will actually help you instead of hurt you financially. You should also ensure that your chosen lender is offering you a fair price on your interest rate. These factors can help you get out of debt. - 23221

About the Author:

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

Real Estate And Its Info

By Don Burnham

When you buy property at auction in a state that has redemption laws, you get a special deed or special title. Because the owner has a number of months in which they can repay the purchase price and redeem their property, it's called a defeasible title. That is, one that can be defeated, which means that you don't have clear title yet.

Redemption Rights: If you buy the redemption rights from the owner at the time of the auction, you will own the title and the rights and therefore be able to get clear title. A redemption purchase should also be notarized. You should consult a local attorney, because each state differs in the way in which this should be handled.

When purchasing redemption rights, you may be dealing with an owner who is under a great deal of stress and may not be aware of the amount of equity they have in their property. Though they may be able to get more for their redemption rights, the rule of thumb is to offer the owner $1,500. They may ask for more, but you should weigh the amount of equity involved.

Purchasing Property

Acquiring Property:A lot of hopeful homeowners, besides scouting out good property, usually start with getting a loan. A note is the borrowed money, say $200,000. When you use that note to purchase real estate, you are issued a mortgage or deed of trust -this is the security instrument. So when you're paying off your loan, it's called paying off your mortgage. If you, the owner and borrower can no longer pay for your mortgage, your property can be foreclosed -that is repossessed, confiscated, or taken as collateral. Or, depending on certain factors, the lender can see you in court.

The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:

In a Deed of Trust state, there are three parties involved in the foreclosure process:

Trustor = Borrower

Beneficiary = Person lending the money (mortgagee)

Trustee = Party handling the transaction

In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.

In the event of a foreclosure, there are usually 2 major ways to handle it:

Short Sale

Equity Split

Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23221

About the Author:

Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.

Hot Stocks are A Winning Gamble

By Hannah Page

The is a new game in the stock market these days called hot stocks. This goes against the standard Wall St. Recommendation of buy low and sell high. The new hot stocks strategy is to buy high and sell even higher. The way it works is that you buy stocks that are rising in worth and sell them while they are still rising. The time between the buy and the sale is short.

Rather than purchasing undervalued stocks and waiting weeks or months for them to rise in value, with the hot stocks approach, you purchase stocks that are rising in value. Rather than holding the stocks, you wait only a short while and sell them when their value is higher than the price you paid. You turn a fast profit.

This investment plan is especially suited to day traders. You have to be conscious of the market trends and select stocks that are showing an obvious steady increase. Buy the stock and after it rises enough to give you a profit, sell it. Don't feel tempted to keep hold of it beyond making a good profit. This is a method, not a get wealthy fast scheme.

If you chance to pick a stock that starts to stagnate or drop in price, sell it straight away, even if you have to take a loss. Never think the stock will recover and you will get your investment back. If it drops lower you will lose even more. The concept is to maximise your gains and keep your losses as small as possible.

Hot stocks are brief investments and shouldn't be held onto for at least a day or 2. Keep on top of the market trends and your stock costs so you can sell at the most advantageous time. This strategy of investment has risks and infrequently you will lose. That is's alright. The most important thing is to chose more winners than losers.

You would not go to Vegas and put all your money on the roulette wheel, and you shouldn't put all your investment capital into hot stocks. This is one of many financial techniques you need to use to raise your money. A solid diversified portfolio will protect your capital, although the returns could be significantly lower. Long-term investments should be the cake of your investments. Hot stocks are the topping.

Hot stocks only work as a short term investment. These are stocks which should be purchased and sold in less than a week. If the stock continues to rise after you sell, that's's OK, you definitely made a profit. The stock could just as easily drop in price.

If you are paying a brokerage for your investments, hot stocks isn't an option for you. Brokerage costs can swiftly swallow your profits. Look into online stock services that charge a set weekly or regular charge for unlimited trades. Trans action charges can be very costly. Let your brokerage firm handle your long term investments, take care of your hot stocks yourself.

Everybody know that you can make money on the stock market. The trick is to invest wisely. Using different monetary instruments and expanding your investments helps grow your money while defending your principal. If you can't afford to bet, don't play. While the stock market trumps Vegas, the percentages will not always be in your favor. Hot stocks are a neat way to play the market, they just are not the only way. - 23221

About the Author:

Find more on stocks to buy now and stock newsletters.

What You Should Know About Short Sale

By Don Burnham

When a Trustor can no longer pay a loan in full, what often follows is foreclosure or even bankruptcy. This is a very depressing financial situation, but it can be solved with a little known alternative: the short sale.

Short sale is usually the last step taken by the bank to recover losses from a defaulted mortgagor. When lenders agree to a short sale, it means the lender agrees to accept less than the total amount due. They are willing to forgive a certain amount of debt or deficiency. However, not all lenders will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose.

A local real estate attorney should be consulted to determine whether the loan qualifies for a deficiency judgment or claim, as state laws vary. One should also consult an accountant to determine tax ramifications. The IRS may consider debt forgiveness as income. There is no guarantee that the lender will not legally pursuer a borrower for the difference between the amounts owed and the amount paid. This depends on individual state laws.

To pursue a short sale, consult your real estate attorney if your case is eligible -certain state laws only allow specific values for a loan to qualify for a deficiency judgment in a short sale. Also, consult an accountant, the IRS may consider the unpaid debts as income, affecting your tax records. Also, the borrower is not guaranteed that the lender will not pursue them for the remaining debts beyond the debt already forgiven -an especially good reason to consult your attorney.

It's hard to guess how long securing a short sale will take, but it's sure to be long, tedious, and tiring. Lenders usually say about 21 days or so for a case to be completely approved.

Short Sale Strategy Overview

How the Short Sale works:

The process is quite simple to understand, it starts with the contract, then the authorization to release, and lastly the addendum. The warranty deed is also part of this whole process. What are really important to grasp in the process is the first two documents:

Contract: This can look like anything and can span from just a page to an entire mini book -it all depends on what it contains and how it's laid out. Just think of a generic contract, it can be really simple or really sophisticated. The addendum should be referred to, at any time the price is mentioned in the contract.

The basic document that contains nearly all vital info on conducting the transaction is contained in the addendum:

Info on the origin of the contract for short sale

Date

Names of the parties involved

Address

It's better if both the simple address and the legal address are listed to avoid confusion.

Any investor, that is, the lenders, should know that in the foreclosure process, there is the opportunity to acquire bargain property -certainly a valid reason to agree to short sale. - 23221

About the Author:

Know about short sale an alternatives to bankruptcy or foreclosure only at Don Burnham's website http://www.weknowthewayback.com. Visit today to know all about short sale!