There is a huge difference between a house and a home:

A house can be a place to eat, sleep, park your car and place all your stuff. It's a material possession and an investment.

A home is where you fell comfortable, safe and protected. A home is where you live!

A house is something that you buy logically.

A home is an emotional purchase.

When you buy real estate you have to balance your emotional wants and your logical needs, because there will certainly be a time when the two conflict.

When viewing a house most people look at it emotionally and envision it as a safe, happy and comfortable home. Later when making an offer or filling out a mortgage application, your logic may begin to kick in instead. That's when buyer's remorse may come up.

The trick in buying real estate is to view all decisions with both, a  logical and an emotional perspective.

You will find yourself owning a warm, happy, safe home and an investment  for the future at a price you're willing to pay.

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No Major Purchase of Any Kind

Review the article titled, "Dont buy a car," and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations and expensive weddings .

Don't Move Money Around

When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.

The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer.

Oh...don't change banks, either.

Should You Change Jobs?

For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money.  For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.

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1-  Choose the wrong Mortgage:  Make sure you analize very well all your options, then put your choices side-by-side and do the math, don't forget to compare worst-case scenarios.Also make sure to look at initial rates future rates and the possibilities of prepayment penalties.

2- Confusing "Pre-Approved" with "Pre-Qualified" for a Loan: A lot of people get mistaken by these terms, as much as they look to mean the same thing they are not. When you are" Pre-Qualified" it means that the lender it's making an educated guess about how much you ca borrow based on the information you have provided. And when you are "Pre-Approved" it means that the lender has verified everything you've told him and it's offering to lend you up to a certain amount at a current interest rate under certain conditions.

3- Have too much credit: Excessive credit is almost as bad as no credit or bad credit. If you have a lot of car loans and credit cards that sometimes can be a sure way to get turned down for a loan, even if you pay your bills on time.

4- Lie on your loan application: Don't exaggerate on your income on a mortgage application or put down some other untruths, beacuse if the lender finds out later they ca call your loan due and payable.

5- Don't hide if can't make the payments: The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments. They have many options at their disposal to help borrowers from losing their homes to foreclosure. But they can't do anything if you don't talk to them about your dificulties. Lenders act as enemies only if you give them no other choice.

6- Skip a home inspection: It could be a costly mistake to you if you fail to make your purchase contigent on a home isnpection. Inspectors will be able to tell you whether the roof leaks, whether the mechanical systems are in good shape, how lond should you appliances last, etc. So don't pass the isnpection just to save $300-$400; that's money well spent. 

7- Hire just any agent to sell your home: Real estate agents are not all the same. You want to look for those who specialize in your neighborhood. Ask them how they plan to market your home, what you can do to make the home more attractive to prospects and how much should you ask.  

  
8- Fail to check out a remodeler: Never hire a contractor that knocks on your door or says that their prices are good only for a few days. Check out a potential contractor thoroughly, try to make contact with their past clients and ask them  about how satisfied they were with all the  contractor's services to their home.     

9- Pay too much upfront: If a contractor asks for more than a third of the contract price as a downpayment, chances are there's something's wrong. At worst he's a scam artist who has no intention of returning once he cashes your check. At best, he's undercapitalized and can't afford to purchase materials on his own. Or, in between, he could be using your money to pay workers on another job. Never give a contractor cash either.


10- Burn your mortgage: It's a wonderful feeling when you make your last house payment. Many people celebrate holding a mortgage burning party.But don't burn the original document, make a copy and burn that instead, and keep all your loan docs in a safe place.

Many people belive they can save considerable amount of money by selling on their own. They look at the average commission  on a house and remember stories of friends or relatives who managed to get through the process with seemingly little trouble. "Other people have sold their own homes," they say – "so why can't I?"

Approximately 10 percent of American homeowners handle their own sales. But in order to do this, you'll need to realistically assess exactly what's involved. The routine parts of the job involve pricing your house accurately, determining whether or not a buyer is qualified, creating and paying for your own advertising, familiarizing yourself with enough basic real estate regulations to understand (and possibly even prepare) a real estate contract, and coordinatind detaisl of a closing. These are serious responsibilities to take on, and they include the concerns that your house is only on the market when you're home, your marketplace is limited to those you can reach locally, and a mistake may cost you the money you're trying to save. Commissions are negotiable. You can talk with a broker to discuss the level of services you will require to sell your home and determine an agreed upon commission rate based upon the services provided.

The best reason for working with a real estate broker is the enormous amount of information they have at their disposal – information that can help make your house sell faster and easier. Professionals know about market trends, houses in your neighborhood, and the people most likely to buy in such neighborhoods. They also know how to reach the largest number of people who may be interested in your house (both through old-fashioned sales skill and the Internet resources of a reputable real estate company), and are trained in areas like screening potential buyers and negotiating with them. Finally, they're always "on-call," and willing to do the things most of us don't: working on the weekends and answering the phone at all hours.

For your own safety, and to make sure you're getting your money's worth in the home you choose, using a professional home inspector is highly recommended. A home inspector will check a variety of things such as your home's plumbing, heating, cooling, and electrical systems, and look for structural problems like a damp or leaky basement, etc.

Usually, you call an inspector immediately after you've made an offer on a home. However, before you sign any written offer, make sure (or have your attorney make sure) that it includes an inspection clause, which says that your purchase obligation is contingent on the findings of a professional home inspector.

Your inspector will not tell you whether he or she thinks the home is worth the money you are offering. Rather, the inspector's job is to make you aware of repairs that are recommended or necessary. A seller may be willing to renegotiate a price to accommodate needed repairs, or you may decide that the home will take too much work and money. A professional inspection will help you make an informed decision.

In choosing a home inspector, consider one who has been certified as a qualified and experienced member by a trade association. Your real estate professional can refer you to qualified inspectors in your area.

A professional appraiser is the best way to tell if a home is priced fairly. A real estate appraisal is an unbiased opinion of a property's value based on its style and appearance, construction quality, usefulness, and other factors, including the value of comparable properties nearby.

When you apply for a mortgage, the lender will have a professional real estate appraiser perform an appraisal of the property.

When you sign an offer to purchase, your realtor will ask you for "earnest money." This refers to a monetary commitment that shows you are serious about wanting to buy. Usually, you will be asked to write a check for one to 10 percent of the sales price.

This money will be held in a special escrow account. If your offer is accepted, your earnest money will be included as part of your down payment . If your offer is not accepted, you'll get back all your earnest money. But keep in mind that if you back out, you may forfeit the full amount.

There is no set number of homes you should look at before you decide to make an offer on one. That's why providing your realtor with as many details as possible up front is so helpful. The perfect home may be waiting for you on your first visit. Even if it isn't, the house-hunting process will help you get a feeling for the homes in the community and narrow your choices to a few homes that are worth a second look.

If you're looking in more than one community, try to make the most of each house-hunting trip. Ask your sales professional for welcome kits, maps, and information about schools, houses of worship, and recreational facilities. Also, be sure to take along a camera and snap some pictures of all the homes you're interested in. That will make it easier to remember and reach a decision.

Tell the sales professional everything you like and don't like about each home you see. Don't be shy about discussing a home's shortcomings. Is the home too small for your needs? Let the sales professional know. Was the home perfect except for the carpeting? Let the sales professional know.

However, remember that there can be two types of sales professionals involved in a real estate transaction; those working for the buyer, and, frequently, those paid by and working for the seller. The seller's agent is obligated to help secure the best price for the seller. In addition, seller's agents may also report any confidences you share with them — including any willingness to pay a higher price should the seller not accept your initial offer. This is why you may want to be represented by a buyer's agent, because she will keep your input confidential. A buyer's agent puts the interests of the buyer — not the seller — first. :)

There is really no rule to use in calculating an initial offer. Naturally, the buyer wants the best value and the seller want the best price, but negotiations can be influenced by many factors, such as a seller who may be changing jobs and wants to sell quickly, or a buyer who is set on a specific home.

After you've looked at the home's features, asked questions, checked comparables, and talked about it with your sales professional, you should have a good idea of what the home's value is in the current market. Consider what you can afford, and make an offer that you consider to be fair.

Most buyers and sellers negotiate on price, with both sides "giving" a little until both agree. At that point, you typically will begin the process of arranging for an inspection and applying for a mortgage.