Buying a home does not occur in a vacuum, involving only you and the seller. There are all kinds of people and services involved
behind the scenes to make it happen. Since some of these services affect both you and the seller, there will have to be be
agreement on which companies you will use for them.  When you make your offer, you should request your favorites for these
services.  If you are unfamiliar with these service providers, you can get recommendations from your agent.

Escrow and Settlement

For example, you are going to need an escrow or settlement company to act as an "independent third party" between you
and the seller. Without having a third party involved, how do you know that when you fork over the money, you are going
to get the deed? This is the type of service provided by escrow and settlement. They will hold your deposit and coordinate
much of the activity that goes on during the escrow period.

Since this third party is very important to both you and the seller and both of you will pay fees to this company, it is importan
to agree on which service to use. Therefore, your choice should be part of the offer. Since you do not buy a home every
other week or so, you are probably unfamiliar with companies that provide this service. Your agent will make a
recommendation. You have the authority to accept this recommendation and include it in your offer, or make your own choice.

Keep in mind that the seller will also have a preference and this may be a point of negotiation in a counter-offer.
It has become customary that one side will choose the escrow/settlement agent and one side chooses the title
insurance company. Even so, everything in real estate is negotiable.

Title Insurance Company

Title insurance is important because, by providing you with an Owners Policy, they insure that you have clear title to the
property. If there are any problems later, you can always go back to the title insurance company and have them clear it up.
Since it is customary for the seller to pay for the owner’s policy, they have an interest in which company is used.

However, you are going to pay a fee to the title insurance company, too. This is for the Lender’s Policy. The lender’s policy
insures your mortgage lender that there are no liens or judgments against the property and that the mortgage will be in first
position. In other words, should you sell the property or refinance it, their mortgage gets paid first, before any other claims
against the property.

The lender’s policy is less expensive than the owner’s policy.

Termite and Pest Inspection

As part of your offer, you may require a termite and pest inspection. This company not only inspects for termite damage
and pest infestations, but also inspects for dry rot and water damage, among other things. The company that performs the
inspection is important to you as a buyer, because you want to be sure they do a good job. It is important to the seller
because it is customary that they pay for the inspection and some types of repairs that may be required.

You should determine which company you want to perform this inspection and make it a part of your offer.
Otherwise the seller will choose. If you do not know which company to hire, your agent will make a recommendation.

Review the article titled, "Don’t 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, expensive weddings……and automobiles, of course.

"Don't Buy a Car"

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

There are many things that should be considered when buying a home. Since most homebuyers expect to buy a bigger
and better home someday in the future, resale value is an important factor in decision-making. You use the proceeds from
selling one home to buy the next one.

While no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain.

"Location, Location"

"Location, location, location," is a common and almost hackneyed phrase in real estate literature. Your agent may even
throw it at you when you ask for advice about buying a home. However, what does "location, location, location," actually
mean? Why repeat it three times?

Mostly, "location" is repeated to emphasize that it is extremely important to the resale value of your home. The idea is to
buy a house that will appeal to the largest number of potential future homebuyers. A careful choice of location can minimize
potential negative influences on future resale value, and maximize positive influences.

Focusing on resale value requires you to make several different "location" choices. The first choice you have to make
is "which community?" At the very least, you should narrow your choice down to just a few local communities.

Location – Local Community, Town or City

Before you can actually pick out a house, you need to choose what cities or communities you would like to live in.
There are many factors you should pay attention to, not only for yourself, but because you intend to eventually sell the
home to someone else. Carefully choosing your community is the first step in "location, location, location" and can help
maximize your future potential resale value.

Economic Stability

When choosing a community for your purchase, it makes the most sense to buy in a city with a viable and stable economy.
Five, ten, or even fifteen years from now – when you want to sell your home – you can have a reasonable expectation
that your community will still be a desirable place to live.

In addition to residential neighborhoods, there should be a healthy mixture of commercial and business districts. These not
only provide jobs to the local residents, but also add an income source that the city can use to upgrade and maintain
roads and city services.

In fact, you should take a drive and see how well the community is maintained. You have probably heard of
"pride of ownership" when referring to an individual home or an automobile. Look to live in a city that demonstrates
community pride, as well.

Government Services

In addition to community pride, check on the services provided by local government. One example would be the local
library system. Are there several library branches? Do they stock a good selection of books, including recent best sellers?

You should also look into local crime statistics and see how the city compares to the national average and other local
communities. Is the police force effective and responsive to community needs? Are fire stations located strategically
around the community so that they also can respond quickly in an emergency?

Another area of inquiry is community services. Does the city sponsor youth sports and have well maintained athletic
facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available
for children, teenagers and senior citizens?

Your local agent, if they are a good one, will have amassed a wealth of information on these subjects of inquiry.
It is also another reason to always use a local agent.

Schools

Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school
system. That is because when you sell the property, many of your potential buyers will have concerns of this nature.

You will want to know if the local schools are overcrowded. Take a drive around and see if there are auxiliary trailers
outside the local schools. Call up the local school district and see if elementary aged children always attend the school
closest to their home. If not, ask why. Are there enough schools to support the local population? If not, are there plans
to build new schools? How will building new schools affect local property taxes?

You should also check to see how local students score on the standardized tests. You can ask your agent about these
things, but you should also get the local phone numbers so you can ask yourself.

There are also school reports available for free on the Internet.

Property Taxes

Property taxes may be higher in one town than another nearby city. This can sometimes affect whether potential
homebuyers view a community as a desirable place to live. Often, they will choose not to purchase in a community
with higher taxes, though this decision is not always justified. Higher property taxes often mean newer and more
modern schools, well-maintained roads, and bountiful community services.

In addition, you will often find that the "cost per square foot" of homes is lower in cities that have higher property taxes.
This means you can buy a bigger house for less money. Since the mortgage payment may be lower, but the property
taxes a bit higher, the monthly housing costs may be approximately the same in each city.

However, many agents and prospective buyers have a bias against a community with higher property taxes. If resale value
 is important to you, make property taxes a consideration when choosing the location of your new home.

How do you pay monthly credit card, automobile payments, house payments or loan payments?