As a first time home buyer, you probably need all the advice you can get. That’s why I’ve collected what I feel are the top 15 pieces of advice for first time buyers. These tips will help make your home buying process a smooth one!

1. Get a copy of your credit report.
Obtain a copy of your credit report from all three credit agencies — Equifax, Experian and TransUnion. Review them closely for errors / inaccuracies.

2. Correct your credit report.
If you find a discrepancy on any of your credit reports, correct it as quickly as possible. All three credit agencies have instruction on their websites for correcting mistakes. Their web addresses are their company names with “.com” at the end.

3. Make a wish list.
This list should include all of the things you want from a home. Size, location, features, etc. Prioritize the items as either “must have” or “nice to have.” This will save you time later on and help you remember what’s important to you.

4. Research local real estate agents.

Start by asking friends, family or coworkers if they can refer a local agent they were happy with. If that doesn’t pan out, move on to search engines and the websites of well-known companies.

5. Hire an agent.

Even with all of the home buying websites available these days, it’s wise to hire a real estate agent. Consider the amount you’ll pay for a home, and the agent’s fees will seem insignificant by comparison. And the peace of mind is priceless.

6. Get pre-approved for a home loan.
This will help you in several ways: (1) It will identify credit problems early on in the home buying process. (2) It will reveal how much you can realistically afford. (3) It will show sellers you’re serious about buying and capable of doing so.

7. Set up Google Alerts.
How would you like to have your own robotic research assistant, scouring the Internet for you 24/7 in search of relevant real estate news? That’s what you get with Google Alerts. Set up alerts for key phrases (ex: “Dallas real estate news”), and Google will notify you when it finds new content on the Internet matching your phrase. Visit Google.com/alerts.

8. Learn your mortgages.
You can’t choose the right mortgage unless you know the pros and cons of each type of mortgage. Learn everything you can about fixed-rate mortgages, adjustable rate mortgages, balloon loans, and government-backed mortgages like FHA and VA. When reading about these mortgage types, pay particular attention to any passage that starts with “This mortgagte might be a good option for you if…”

9. Read up on RESPA.
RESPA stands for the Real Estate Settlement Procedures Act. RESPA gives you rights to certain mortgage information at certain times during the home buying process. You should learn all about RESPA, and you can do so by visiting www.HUD.gov.

10. Get a home inspection.
A home inspection will usually cost you between $300 and $600. This is a small price to pay for peace of mind. A home inspector will check the status of your future home’s foundation, roof, heating / cooling system and more. You can also accompany the home inspector to learn about these parts of the home.

11. Ask plenty of questions.
Ask questions of your agent, the sellers, your mortgage lender … everybody. Don’t ever think you’re annoying somebody by asking too many questions. Get all your questions answered, every step of the way!

12. Take plenty of notes.
When house hunting, bring a notepad along. Also bring a digital camera if you have access to one. Take notes about each house (labeled by address) to help you recall the details later on. This is especially important if you’re looking at a lot of houses.

13. Bring a friend along.
The buddy system is great for house hunting. By bringing a friend along on house visits, you’ll have an objective third part to point out the pros and cons of each property.

14. Find out about schools.
You should know about the quality of local schools regardless of whether or not you have school-age children. If you do have children, you’ll surely want them in good schools. If you don’t have children, the quality of schools is still important because it affects your resale value.

15. Visit HomeBuyingInstitute.com
You can learn more about any of the home buying tips on the list (plus a lot more) by visiting HomeBuyingInstitute.com. It’s the Internet’s largest library of home buying tips and advice, and best of all it’s free!

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author’s note, and also leave the hyperlinks active.

Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet’s largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!

Tags: buying a home, home buying, home loan, Mortgage, real estatebuying a home, home buying, home loan, Mortgage, real estate

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A debt coverage ratio, also known as the debt service coverage ratio, is a popular benchmark used in the measurement of an income-producing property’s ability to produce enough revenue to cover its monthly mortgage payments. To calculate a property’s debt coverage ratio, you first need to determine the property’s net operating income. To do this you must take the property’s total income and deduct any vacancy amounts and all operating expenses. Then take the net operating income and divide it by the property’s annual debt service, which is the total amount of all interest and principal paid on all of the property’s loans throughout the year.

If a property has a debt coverage ratio of less than one, the income that property generates is not enough to cover the mortgage payments and the property’s operating expenses. A property with a debt coverage ratio of .8 only generates enough income to pay for 80 percent of the yearly debt payments. However, if a property has a debt coverage ratio of more than 1, the property does generate enough revenue to cover annual debt payments. For example, a property with a debt coverage ratio of 1.5 generates enough income to pay all of the annual debt expenses, all of the operating expenses and actually generates fifty percent more income than is required to pay these bills.

Let’s say Mr. Jones is looking at an investment property with a net operating income of $50,000 and an annual debt service of $30,000. The debt coverage ratio for this property would be 1.2 percent and Mr. Jones would know the property generates 20 percent more than is required to pay the annual mortgage payment.

If you want to purchase an income property, chances are your lender is going to require a minimum debt coverage ratio. The debt coverage ratio allows the lender to see if a property generates enough income to cover the property’s operating expenses and debt service. To a lender the higher the debt coverage ratio, the less risk there will be with the investment. Debt coverage ratio requirements vary from lender to lender with some being as low as 1.1 and others charging as much as 1.35. Most lenders will accept a debt coverage ratio of 1.2 or above.
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Article by Yon Olson, President of Accelerated Capital, Inc. - A Bend Oregon loan and mortgage company specializing in home and commercial real estate loans for all credit types. Call Yon at 541.617.0876 or visit us online for your Bend Oregon home loan or mortgage http://www.acc-cap.com/

Tags: Bend Oregon home loan, Bend Oregon mortgageBend Oregon home loan, Bend Oregon mortgage

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Seems like a dream, but many of today’s retirees who have embraced technology and new forms of second home ownership are living the dream.

By combining condo hotel and technology, many people are finding they can spend more time in the places they love, with less expense and more luxury.

Condo hotels are hotels that have been converted or built for individual ownership of the hotel rooms and suites as traditional condominium. A condo hotel unit offers the owner hassle free rental income when the owner is not in residence and personal luxury of maid service, valet, etc when in residence.

As technology evolves many of us are finding that the office is anywhere with WiFi and blackberry cellular service. So why not office in luxurious surroundings? On a beach or in a luxury hotel?

Will retirement be simply a free-range office space that is looks like a series of condo hotel suites? Many demographers beleive the baby boomer generation will redefine retirement as a second career of one’s choosing and not an endless round of golf or a rocker on a lonely front porch. That retirement will look like a wall-less and wireless career of new ideas and invention.

if these predictions are correct, the future is indeed bright for the condo hotel industry.

Bob Waun , Founder & CEO

bwaun@vacation-finance.com

Bob is CEO of Vacation Finance, America’s First Second-Home Lender. As a VP at Paramount Bank, and while at Wells Fargo, Bob innovated lending for Condo Hotel projects. He holds a Master’s degree in finance/economics and BBA in finance from Walsh College and a MI Real Estate Broker’s License. He has personally lent over $750+ million in residential loans, and over seen operations lending $1+billion. He has been a professional guest speaker and taught numerous courses/seminars on real estate finance.

He managed controlled business relationships for a national real estate brokerage in MI and OH, held top sales honors for Wells Fargo in 7 states. Bob has a 17 year track record of cutting-edge innovation in the mortgage finance.

Since 2002, Bob has worked with condo hotel developers and lenders to improve the market for condo hotel financing.

Tags: 2nd home loans, boomer, condo, condo hotel, fractional, Mortgage, real estate, realtor, retire, second home2nd home loans, boomer, condo, condo hotel, fractional, Mortgage, real estate, realtor, retire, second home

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