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Top 10 mistakes of first-time buyers

Buying a home may seem a daunting task, but a little preparation will ease the way. Check out these 10 common pitfalls of first-time homebuyers before starting your search.

The declining home values that are plaguing homeowners are just one of the factors creating an opportunity for prospective homebuyers.

Standard & Poor’s latest Case-Shiller index, which tracks home prices across 20 major U.S. cities, reported that values dropped 19% in January from a year earlier.

Those depressed values, combined with near-record-low mortgage rates and government incentives (an $8,000 first-time homebuyers’ tax credit included in the stimulus bill), are luring more first-time home buyers into the market. Indeed, a recent Century 21 Real Estate survey found that more than three-quarters (78%) of potential first-time homebuyers say now is a good time to buy.

If you agree, be aware that buying a home comes with plenty of potential missteps. Here are 10 all-too-common mistakes first-timers make. Read the rest of this entry »

How’s Your Credit?

The three major credit-reporting agencies, Equifax, TransUnion and Experian, are each required to provide consumers, upon request, a free copy of their credit report once every 12 months.

The reports will not be sent automatically. Each consumer must request reports one of these three ways:

* Go to AnnualCreditReport.com, which is the only authorized source for consumers to access their annual credit report online for free.

* Call (877) 322-8228.

* Complete the form on the back of the Annual Credit Report Request brochure, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The brochure, which can be ordered or printed, is available from the Federal Trade Commission.

A credit report is simply a rundown of your payment history, listing your accounts, balances and your payment behavior for each. It is not a credit score, or FICO, the three-digit gauge of your creditworthiness used by lenders, employers and insurers. But credit scores do use the information on your credit reports in their calculations, so it’s important to spot and correct inaccuracies as quickly as possible.

[MSN Money]

Increasing The Value of Your Property

The biggest factor determining the value of your property is the market for homes in your area. However, other factors that you can control are also important. For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine’s 2005 “Cost vs. Value” Report”  remodeling report, a mid-scale remodeled bathroom returns 102% to the owner after four years, an upscale bathroom addition provides 85.8%, and a mid-range master bedroom suite, 82.4%. Flashy remodeling projects rarely pay off, but if one area of the house is out of date or in bad condition, you will probably need to remodel it to get the best price for your home. The numbers have been increasing in recent years as real estate prices have increased.  Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.