In the past, if individuals were interested in buying a home, they would choose a real estate agent. Most buyers did not realize that there was a better option for protecting their interests.

In the past, if individuals were interested in buying a home, they would choose a real estate agent. Most buyers did not realize that there was a better option for protecting their interests. They should have been selecting a buyer

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Buying a home can be a long and complex process. I take a methodical appproach when representing buyers, avoiding common pitfalls while protecting you as the purchaser. As you prepare for this important event, please consider the following:

Preparing:

Use a buyer's agent.
Although allowed by MLS regulations, be aware that dual agency protects the home seller, NOT the home buyer! Protect yourself by using an independent agent that will look out for your best interests.

Engage a seasoned and professional loan officer.
Find a loan lender with extensive experience, a thorough knowledge of the industry, and has familiarity with multiple loan vehicles.

Get pre-approved on a loan that's right for you.
This helps you to avoid spending time searching for homes outside of your price range as well as include homes that you may not have thought you could afford.

Minimize debt levels.
Existing debt will have a direct impact on the loan you may qualify for as well as your lifestyle after you purchase. Keep close tabs on the amount of debt you're carrying and strive to reduce it to the full extent possible.

Clear your schedule.
Be prepared to respond to new listings and/or price changes accordingly. The market and seller circumstances may change quickly, and the more available you are to react the better.

Plan your move.
If you are currently renting or leasing, when does your contract expire? What are your obligations if you move before or after that date? Do you have temporary housing arrangements available? The more flexibility you have in your timing the better.

Prepare a plan for agent communication.
When do you want to begin your search? What does your timeline look like? Have you registered for timely email alerts in your target area and price? How many homes do you expect to look at before purchasing?

Searching:

Stick to your price range and location.
With thousands of homes available at any one time, it's important to avoid distractions that will cost you time and money (and could potentially lead you to issues you hadn't prepared for). Stay within the price range and locations you've already researched, you'll be glad you did.

Educate yourself.
The internet is filled with resources related to home buying, the search process, and home ownership in general. Perform searches at popular search engines using common terminology to find out more.

Leverage technology.
Why manually wade through thousands of listings when you can automate the process, focusing on only those particular areas and price ranges you're interested in?

Buying:

Submit an offer that you would accept if you were the home owner.
In today's market, sales prices typically end up being 2% of the asking price. Set your expectations accordingly.

Define and set aside earnest money.
This is one of the best indicators as to the home buyer's level of sincerity. The higher the amount, usually the more commited the buyer is to the offer.

Hire a home inspector.
There may be no better way to avoid purchasing a home with hidden problems than to hire an inspector. We're so committed to this that we actually REQUIRE it of all of our buyers. For more information, contact a licensed and reputable home inspector.

Review ROA covenants and restrictions.
This will ensure you understand community expectations and limitations before you make the move.

Get everything in writing.
Be specific when submitting an offer as to what you'd like included in the sale. Items such as a refridgerator, washer and dryer, and hot tub may be negotiated into the contract. If you're interested in it, be sure to captureit in writing.

Use contingencies appropriately.
How much time do you need for inspection? How about financing? What about the sale of your current home? Balance your protection as a buyer with the strength of your offer.

Closing:

Understand your timeline.
Escrow may be as long or short as defined and agreed upon. Be sure you preparefor this part of the process by being available for signings, etc.

Plan for move in.
Keys are transferred only after escrow confirms title has transferred, usually late in the afternoon of your target close date. The home may then be entered for the first time after 9:00pm unless otherwise agreed upon with the previous owners.

Enjoy your new home!
After months of hard work, you can finally sit back, relax and celebrate. Congratulations!

Now is the time to contact a lender to see if you would benefit from refinancing your mortgage loan(s). You can start with the lender who currently holds your loan, but it's always a good idea to speak with one or two more to be sure the product and lender you choose are a perfect fit for you.

Information you will want to provide a lender when discussing your options is:
1) the rate and term of your current loan(s);
2) is your current rate fixed or adjustable;
3) balance of your loan(s), and
4) how much you currently pay monthly and does that include taxes and insurance escrow.

If you have a home-equity loan in addition to a first mortgage, let the lender know right away before obtaining a quote. Depending on how much equity you have in your home, the interest rate may be slightly higher due to having a home equity loan. You may have the option of combining both mortgages into one payment or subordinating the home-equity loan and refinancing only the first mortgage. Again, express this to the lender so they can outline all of your options.While refinancing will lower your interest rate, you will have closing costs to pay. In most cases, these fees can be added to the loan amount or you may pay them out of pocket. Keep in mind, if you finance the costs, you are paying interest on those fees for the term of your loan.

In lieu of a full refinance, some lenders will allow you to modify just the interest rate. You would pay a one-time fee plus any interest due and the lender would lower the rate and possibly recalculate your monthly payment for you.

You should inquire with more than one lender about refinancing because not all banks, mortgage brokers or credit unions offer the same mortgage products, nor do they charge the same closing costs. You may request a good faith estimate from any lender which will itemize their fees which will allow you to compare each of them. Don't be afraid to comparison shop. You want to be sure you're not paying any unnecessary fees to refinance.

Refinancing now could have a significant impact on the real cost of your home. Now is the right time to contact the experts who can walk you through your options. Don't delay!

Starr Manning is financial center manager for the Muncie main office of MutualBank.

If the thought of selling your home seems daunting, don't worry. The process itself may take time, but rest assured that I have mapped out a fast route that both avoids suprises and focuses on obtaining the highest possible price for your home.

Below are a list of selling tips that have a proven track record in reducing the time it takes to receive an offer while maximizing the value of your home.

Preparing:

Select an agent that knows your area.
The benefits to you when selecting a neighborhood specialist are immediate. Agents that stay in tune with a particular area (and preferably live there!) will already understand the area's strengths and weaknesses and how to market around them.

Get your home in shape.
Perform a preliminary walkthrough of your home, taking away any potential eyesores, performing repairs where needed, and proactively addressing any items that would subsequently appear in a home inspection report.

Stage your home.
There may be no faster way of increasing the value of your home than by relying on an Accredited Staging Professional (ASP), to stage your home. By moving (or removing!) furnishings, buyers will be able to envision their living in the home more easily.

Plan your listing's "go live" date.
Strategize the timing of your listing's start date. Do you have any trips planned? Do you need to consider school schedules? What about the weather? Typically the spring and summer months are the best time to list a home, but inventory is typically lower during the fall and winter months, supporting the seller's position during negotiations.

Listing:

Find your home price "sweet spot".
Identifying your initial offer price is an art, not a science. It helps to engage your agent, evaluating what other properties are on the market, what homes have sold for recently in your area, and what specifically about your home may increase or decrease it's value. The bottom line is that you want to list your home at a competitive price so as to gain buyer's attention right away. You only get one chance at being a new listing!

Select your marketing options.
Discuss with your agent what marketing approaches you favor. The MLS is really just the beginning. Would you support open houses? Alternative internet advertising? Buyer incentives? There are many ways to reach potential buyers, simply pick the right combination for you.

Be available.
The home selling process will require your attention, often for several weeks or months. Be prepared to accomodate buyer showings and maintain a high level of communication with your agent should an offer be received.

Offer reception.
Although every real estate transaction's slightly different, the negotiation process is often more simple than people expect, especially if the home seller's never been through the process. Agents are required to present ALL offers received to their customers. Have him/her walk you through each form, explaining their importance and how it may affect your position in the market, timing of sale, risks of fallout, etc.

Get everything in writing.
Be specific when negotiating an offer as to what you'd like excluded from the sale. Items such as a refridgerator, washer and dryer, and hot tub may be negotiated into or out of the contract. If you're interested in it, be sure to capture it in writing.

Escrow:

Mutual acceptance.
The escrow process begins when there is mutual acceptance on price and terms. It's important to point out that strict timing requirements are now in effect, such as those surrounding inspection and financing contingencies. Home sellers need to be aware and responsive to these deadlines.

Contingencies.
For the their own protection, it's common for buyers to include inspection and financing contingencies within an offer. Either of these may increase the risk of an offer falling out of escrow. Home sellers can prevent this in various ways, including the requirement of a higher deposit amount, acceptance of offers only when a preapproval letter is supplied, performing home inspections of their own prior to listings, etc. Discuss these strategies with your agent.

Respond to inspection findings.
If the seller agrees to perform a repair, replace an item, etc. in response to the home inspection, ensure the work is performed in a timely manner and that successful completion is communicated right away to your agent.

Closing:

Plan your move.
As the close date approaches, be sure to schedule an appropriate amount of time to move your belongings, cancel utilities, perform final cleaning, etc. so as to avoid any last minute stress.

Paperwork signing.
Escrow signings may easily be coordinated with the escrow company to accomodate your schedule, including out of state signings with partner offices and early signings so as to avoid any risks of schedule conflicts on the close date.

You're done!
After months of hard work, you can finally sit back, relax and celebrate the sale of your home. Congratulations!