When you've made the important decision to stop renting and buy your own home, you'll need a plan to get started on your search. While most real estate agents can advise and guide you through the home buying process, identifying exactly what you want and being clear about what you'll settle for - and won't settle for - will help you make the best decision for your long-term home investment.

Many first time home buyers feel overwhelmed and frustrated by the homebuying process simply because there are too many decisions to make. How do you decide on the best location? What if the home isn't in the best move-in condition? Can you afford to be so far away from work? Making sure you've asked yourself the right questions and creating a 'wishlist' for your ideal home will make the home buying process much easier, and also help you get over many of the challenges involved in finding that perfect home. Start creating your wishlist with the following essential questions and considerations in mind:

1. What are the essential amenities you're looking for? Think about fireplaces, swimming pools and kitchen appliances that you want to have in your new home. Prioritize these so you can simply say 'no' to a prospective home if it doesn't meet the basic amenities criteria. Be as specific as possible with this section so you can narrow down the hundreds of options available.

2. Be specific about your location. Author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask' explains that location is one of the most important factors when considering different homes. You'll need to think about where you will be located in relation to schools, places of worship, shopping venues and even your friends and family. Your final location will determine how much you may need to drive each day - and if it's worth the extra effort.

3. What is the ideal size? Do you need more than three bedrooms? Is your family growing? If you are going to need more space in the near future, you may need to buy a home with more space than you currently use. Project your home needs for at least the next three to five years so you select the right size.

4. Are you willing to spend on home renovations? Some homes might have the perfect size and the perfect location but are not in any condition to house your family. How much are you willing to spend in renovating the home? Being specific about this area will help you save time as you exclude some houses from your search.

5. Do you worry about security and safety? You might prioritize safety and security if you are living alone or with your children. Determine the things that you will need in order to feel secure in your home and neighborhood. Cross-out houses that do not meet your criteria.

By asking yourself specific questions about your preferences, goals and dreams, you'll be able to narrow down the vast field of choices and find the home that truly meets your needs.

About the Author: Alexandria P. Anderson is a agent that helps people to find and purchase Bloomington homes and properties in the Twin Cities of Minnesota.

Making the right decisions particularly on the loan amount matters a lot when it comes to buying your desired property. But first, you must consider the fact that purchasing a new home requires prequalification and preapproval, and you actually need to have your credit report checked out. A detailed inspection of your financial circumstance or credit report may be done by a prospective lender while you go through the processes in prequalification and preapproval, but at the same time - you may want to check your credit report for errors from a credit bureau, for free.

There are cases when errors or mistakes happen and if this is the situation, better have your records cleared up, likewise, compile all your communications with credit bureaus and lenders as references. If you have finished all these tasks, its time to factor in this important ideas and tips in the loan prequalification and preapproval for you to buy your new property:

1. Check the different mortgage programs through the Internet. You can find several loan packages and compilation of the latest interest rates through websites like LendingTree.com and Bankrate.com. Examine these options in the Internet and if you want to have a preliminary review - you can give your personal details. As soon as you have forwarded all the necessary information, a representative will contact and guide you for the remaining steps to follow.

2. Visit and seek the help of your local bank. The best authority from your area bank to ask help from are mortgage officers in case you want to get a prequalification letter or preapproval status. This may take some time to accomplish compared to the online process, according to Ilyce Glink, author of '100 Questions Every First Time Home Buyer Should Ask'. But if you are the type of person who find it easier to get things started going to the bank and talk to a representative in person, this may be what you need. The same kind of service is provided.

3. Transact using the telephone. Related prequalification services are also provided over the telephone by some lending companies, and you don't have to visit a bank or browse the Internet to begin. Secure the number through a bank or financial institution and from there, you may start sending yout personal details over the telephone.

4. Go for a national lending institution. The benefit of opting for national lenders like Countrywide home loans and Bank of America is that it can give you more alternatives for your future loan because they offer both online and telephone transaction for prequalification and preapproval. Information about the latest rates can be found in their websites, so it's easier for you to submit information and get loan prequalification.

5. Try an aggregator website. If you can't decide between different banks or financial institutions, use an aggregator site that compiles rates and services from multiple lenders and only requires you to submit your information once. After the information is submitted, you can select the best package from several different options.

Buying a home is much easier when you know the basics in getting pre-qualified and pre-approved for a home loan. Refer to these essential steps for you to make the most in your pursuit to purchase your first home.

About the Author: Alexandria P. Anderson is Lake Minnetonka real estate agent that helps people to find and purchase Lake Minnetonka homes and properties for sale in the Twin Cities of Minnesota. 

It is essential to understand the steps in home buying especially if this is the first time that you will purchase a new house. Buying a home usually involves working with a subagent otherwise known as the seller's agent or seller broker. These agents are the ones who act as the seller's representatives whenever closing a deal. As such, they are entitled to a commission in addition to rights and responsibilities towards the buyer.

There may be varying regulations from one state to another as far as home buying is concerned but there are several things they cannot do in accordance with the national law. As explained by the writer of '100 Questions Every Home Buyer Should Ask' - it is necessary for all buyers to evaluate first the agent's forms and disclosures before signing said documents. This can help you understand better the types of services that they will be providing. Moreover, there are several aspects you should know in relation to what the seller's agent can or cannot do:

The seller's agent can present you with complete price lists of homes within your preferred area or location. "Comps" pertains to a compilation of similar homes in a particular area, the list prices, and listing information. The seller's agent typically provides a 'comps' to ensure that a reasonable price is agreed upon during the negotiation process.

The seller's agent cannot point out which home you should purchase. The decision on which home to buy comes from only you. If you are torn between two properties, the seller's agent cannot insist on having you chose one over the other even if he is working for the sellers of both properties.

The seller's agent cannot discuss the home's defects or flaws. In purchasing a property, the seller broker has no right to mention anything that would have a bearing on your choice or decision. Any material flaws or defects can be discussed but you will still need to find out for yourself if the property is really the best option.

The seller's agent cannot make suggestions on the best offer for the home. It may be tempting to ask the seller what price you should pay for the property, but they cannot legally offer this information at any time during your communications. The seller broker has certain obligations to the seller, so this information may impede on that relationship.

The seller's agent can ask list of referrals from you. Seller brokers have the right to request for referrals from you, and that includes your acquaintances, friends, and family members. Many of these seller brokers are independent business owners and it would be an act of goodwill to help them find new clients.

In home buying, it is essential to remember a few important things. It is a fact that seller brokers facilitate the home buying process. However, this does not always translate to giving you all the benefits in the purchase of your new home. So it is necessary that you conduct your own research and find a real estate agent who can assist you or help you address your home buying concerns.

Alexandria P. Anderson is a licensed Minnesota Realtor that uses the MLS Listings MN to help her clients to find and purchase Property in Minnesota.

Are you worried about investing your money in real estate? With the general knowledge media spurs that the market is in the tank, who would not feel the same?

Smart investors put a premium on complete and accurate information. Start questioning anybody's credibility who claims that an investment is 100 percent secure or wise because whatever you do with your money certainly involves some form of threat. In this sense, it is advisable to KNOW what you must know in the business. Let us say your apprehension leads you to decide to do "nothing" with your money but instead keep it in the safety of your home. It still would not guarantee defense against other forms of destruction like fire, flood, even theft.

What if you are the type who'd rather keep your hard-earned money in a safety deposit bank? Well, consider the fact that inflation reduces your money's buying power. More concretely, this means that your bills are only worth the currency's present value. Over time, you will find out that you have wasted an opportunity to expand its value.

The annual rate of inflation in the United States hovers around 3% ("things" cost about 3% more every year). That means after one year of sitting in the secure bank box doing nothing, your money is worth 3% less. This wouldn't be called "saving" in my opinion; you're constantly losing purchasing power!

Let us also look into savings account. Those with this mode of saving are lucky because the FDIC or the Federal Deposit Insurance Corporation protects them. The risk involved is minimal as far as losing money is concerned. However, there is such a thing called inflation that even the best savings account in the world will have a hard time counteracting. Inflation can also negatively affect your savings account interest earnings.

Stocks, some would say, are also promising. However, you should know that stocks investment is like investing in an "idea". How would you feel about owning something that is purely abstract: something you cannot hold or feel? In reality, what you really have is the fact that you allowed your money to be used by entities so that when they flourish, there will be a subsequent gain on the money you shelled out.

Relatively, you also hold no control on said "idea". Your chance of success cannot be told in advance either, since a number of factors that will come along the way have to be identified. Investing in stocks, I must say, can present a considerable amount of risk and can only be prevented if you decide to make it your profession or spend all your time doing research on the companies. This is the main reason why I am presenting the last and best option, the real estate.

Why? Real estate is a TANGIBLE item that is held very closely to you; you can see it, touch it, and improve it. There is very low risk that the physical investment itself will disappear, and even if it does, that's what insurance is for! (Try getting that for your stocks!) And unlike paper currency, the value of your property grows with inflation, so you're not losing purchasing power of your investment every year.

Finally, the best thing in real estate is that the return of your investment is intensified! To name a few, you get huge tax breaks, gained equity through renter-paid debt reduction, equity gained through improvements, and many other surprising benefits. Can real estate investment protect your money? While it is true that no investment is a hundred percent safe, with forethought, I can definitely assure you that this is where you'll find the security you're looking for.

About the Author: Alexandria P. Anderson is a MN Real Estate agent that helps people to find and purchase MN Condos and other properties in the Twin Cities of Minneapolis and St. Paul. 

First time home buyers often are befuddled when it comes to choosing the best mortgage package. In addition, there is no guarantee of getting your preferred mortgage loan even if you are working with a mortgage professional. First time homebuyers must not sign away the loan they qualified for but instead consider a smaller, more affordable loan.

How does this happen? Loan officers will qualify you for a loan based on your income ratio and not necessarily how much you're prepaid to pay in housing payments each month. If you borrow the entire loan amount that you "qualify" for, it's likely that your monthly payment will be pushing your monthly budget to the max.

To prevent yourself from borrowing up to the limit that the loan officer presented, you can set your own loan amount limit. This can help you effectively manage your housing expenses based from your income bracket. There are several ways to find the right mortgage for your newly-purchased home:

1. Be informed about the tax benefits. 'Interest only' loans are those that allow deducting the entire payment from your taxes on a particular year. There are also other loans with negative amortization that won't permit deduction of interest from the monthly payment.

2. Plan intelligently. A fixed interest rate loan is a good choice especially if you intend to stay in your home for 30 years and more. Compared to ARM loans and other loan products, FIR loan can help you withstand changing market conditions, although it may be a higher in interest. A fixed interest loan can also have its disadvantages. The author of 'Smart Consumer's Guide to Home Buying', Barron, suggests that fixed interest loan may increase your loans because of the demands of ecrow account associated with it.

3. Ask about other home payment options. Flexibility in your mortgage loan's payment can help you maximize your funds. For instance, there are mortgage loans that allow making extra payments toward the principal balance without worrying about a penalty. You may inquire about this type of loan so that you would not be problematic of your debts in the future.

4. Discover some other techniques to pay affordably. Keeping your loan payments manageable means making necessary adjustments on the loan amount such as when the lender offers you a huge loan. An example of this is keeping your payments only within your budget level through a low interest rate, longer payment terms for the loan, and a good plan to make interest only payments.

5. Avail yourself of mortgage insurance. Not all first time homebuyers have available funds to serve as down payment, though it can create a difference to your monthly payments and loan amount. When you have mortgage insurance, you can have funds for your down payment. In some instances, mortgage insurance can help you apply for an attractive product minus any down payment.

Alexandria P. Anderson is a licensed Minnesota Realtor that uses the MN Real Estate Listings to help her clients to find and purchase Minnesota Homes for Sale. 

Those of us who are conscious of the current economic conditions would say that choosing between owning and renting a house at this time poses quite a challenge. It is very easy to fall prey to others whose opinion seemingly sound "good." However, we cannot deny that this requires expertise on the part of the information source. In so doing, we can possibly avoid costly or unnecessary mistakes. Preferring the right information source with reference to owning or renting also affords us the chance to anchor our decisions from an authority on the matter.  

Whoever you take advice from should consider your individual situation, have experience, and be able to prove his/her point with solid evidence. In the case of should I rent or should I buy, Russell Gray (co-author of the book Equity Happens) would say "Do the math!"  In other words, everyone's situation is unique and often times math is the solution to get an objective opinion (in this case, numbers) about what choice to make in the rent vs. own debate, at least from a financial standpoint.

With that being said, I'm not going to try and tell you which option to choose. I cannot possibly do that because I don't know your particular situation. I will tell you some numbers to think about and I will say that for many people, right now is an amazing time to purchase a home. You can start with monthly expenses. In the case of renting, add up your rent plus any additional fees and the utilities you must pay.  

On the side of ownership, more items are combined together that would require a professional's assistance. Included in the ownership costs (otherwise known as PITI) are the following: "principal" which pertains to the amount you must prepare toward your loan's principal, "interest" or the amount paid towards your loan's interest, "taxes" or the amount you must pay for property taxes, and "insurance" which pertains to both property and mortgage insurance. This makes the process a bit more daunting.

Owning a home also covers utility expenses plus other maintenance outlay aside from the PITI. In the case of renting, while it is compelling that you only pay the same amount on a monthly basis; you can go back and determine what your previous payments could buy you a home for. Monthly monetary costs are important aspects in deciding what to choose between owning and renting but it is also equally significant to look at the long-term benefits.

In this case, ownership seems to be where the long-range financial rewards are. Renting a house does not guarantee a title even after years of investment. You will also notice that your rent increases as time goes by. On the other hand, the payment or main cost allotted to buying a house practically stays the same even through the years except for some such as utilities, insurance, etc. The good news is that there is a promise of equity from all the payments you have made towards the ownership of your house. In an appreciating market like ours - a wise choice can go a long way in as far as the value of appreciating our home is concerned!

There is a good chance your choice shifts according to your personal feelings and opinion. Simply put, making the best decision towards renting or owning a home involves your subjective feeling. What can be more fun than having a house you can call your own, and enjoying the independence in creating changes with it however you like it! On one hand, you might favor the side of renting if you will give emphasis on other concerns such as having no lawn to mow, or other maintenance issues.

The math is very important to look at, however, and often will put in perspective the subjective feelings you have.  For example, maybe you won't think not having to worry about replacing your refrigerator in a rented apartment is a big issue anymore when you see how much extra you are paying to rent instead of own. Or it could go the other way and maybe the benefit of choosing your own paint color in your owned home seems minor when considering the outrageous property taxes and lack of appreciating home values  that come along with the area you want to live in. The numbers usually don't lie and choosing the best option for your personal finances usually outweighs your subjective considerations.

Concisely, this article wants to present two major points: always consult a professional in weighing out your options and calculating your expenses; and look beyond the immediate gains of ownership or renting. The benefits from both sides will not be evident unless we set our eyes on the long range that will not be apparent on a monthly cost comparison. In a buyers market that we are in, ownership is favored over renting.

Alexandria P. Anderson is a licensed Minnesota Realtor that uses the Saint Louis Park Listings to help her clients to find and purchase Saint Louis Park Homes and other Twin Cities properties. 

The vast majority of people believe that the business of buying and selling property is absurdly difficult to learn, and that the rules one must follow in order to succeed are complex and esoteric. In truth, through, if everyone knew how simple it can be to achieve success as an investor, there would be a lot more successful investors running around. The key to unlocking the secrets of real estate investing is to start buying property. That's it.

If you start learning the ropes and making a few smart investments now, you will be way ahead of the pack.

Think about airplane pilots, for example. These guys sit down in the cockpit with some very complicated equipment. They use this complicated mass of dials and switches to take a giant metal tube into the sky and safely get dozens of passengers to their faraway destinations in only a few hours. Once upon a time, the last pilot who took you on a ride had never sat in a cockpit. But slowly he began to learn. Eventually, he became an expert and can now probably take up that bird and set it down with his eyes closed.

Just like all the flashing lights and mysterious devices in an airplane's cockpit seem absolutely mystifying to the beginner, most have absolutely no idea where to start when it comes to learning the real estate business. Just like a pilot, a prospective property investor must start out by sitting down at the metaphorical cockpit and become familiar with what each little switch and lever does.

If you start investing in properties, and do it wisely (by learning as you go and by getting advice from the experts) you will soon find yourself making a little bit of money at it. Then you will find yourself making more money at it. Eventually you will make a lot of money from it and wonder when exactly you stopped being a novice and started being an expert. It is a gradual process, like anything else.

The Rich Dad, Poor Dad books by Robert Kiyosaki are a great starting point for those who want to learn more about just how easy it can be to break into the business of investing. In addition, 'The ABCs of Real Estate Investing,' by Ken McElroy do a great job of laying the process out in a logical, easy-to-understand manner.

There is one key rule when it comes to starting out as an investor, and those who follow this rule will have absolutely no trouble achieving success-- to put it simply, you much approach the real estate business as something you can learn over time, rather than something that should come naturally. The investors who are able to make money while blindfolded, with both hands tied behind their back weren't born with that ability; they have simply been practicing for much longer than you have!

After all, you wouldn't want to climb into the cockpit of an airplane, fire it up and hope for the best, would you? Of course not. That would be suicide. On the other hand, you would expect to become a good pilot if you went through a prescribed program and logged enough hours behind the wheel. Approach real estate investing in the same way and the sky's the limit.

About the Author: Alexandria P. Anderson is a Minnesota Real Estate agent that helps people to find and purchase Condos in Minnesota and other properties in the Twin Cities of Minneapolis and St. Paul.

It's a fact of life that you will have to pay your taxes each year, and it's equally inevitable that you'll hear people complain about them. Those who are tired of grumbling about having to pay their own taxes will often grouse about how much money the rich manage to avoid paying. No matter how one looks at it, it seems unfair-- those with less bear the greater part of the burden while the wealthy have lawyers working around the clock finding new ways for them to avoid paying their share.  With this state of affairs, it's no wonder that the lower and middle classes resent the rich.

Unfortunately, simply recognizing injustices and complaining about them isn't sufficient to change the ways of the world. The rich will inevitably have money and therefore power, and they will use this power to stack the deck in their favor, particularly when it comes to using tax breaks to keep their money.  They will claim that there simply isn't enough money for everyone to get what they need, all the while cutting corners and keeping their spoils for themselves.  This extends to elected officials as well-- how many poor politicians have you heard of?  

Because this is the way our society works, you can either sit and feel sorry for yourself or you can take steps better your situation.  The truth of the matter is that, if you know the secrets of the rich, you can get these same tax benefits that the rich enjoy.

In his Rich Dad book series, Robert Kiyosaki advocates figuring out what the rich do to be rich, and do that. Except that you don't have to figure it out. He didn't even have to figure it out, because he had a rich "dad" to tell him the secret of the rich: investing. Especially in real estate.

Kiyosaki's book "Cash Flow Quadrant," is centered around the titular diagram, which consists of a square split into four quarters labeled 'E' (employee), 'S' (self-employed), 'I' (investing) 'B' (business).  These four categories not only describe the four ways in which individuals make their money, but also provides insight into how an individual's personality factors into the way in which they think about money.

Kiyosaki prefers to belong to the Business and Investment quadrants because that, he says, is where the money is.

As they say, if you can't beat 'em, you've got to join 'em. This is doubly true when you're talking about the wealthy. With this mindset, you'll realize that tax breaks for the rich aren't really so bad, since you can take advantage of them when you become rich.

The path to riches is actually very simple; all you've got to do is start investing, or join the 'I' quadrant.  If you have a high-paying job, you may be able to do this without leaving the 'E' (employee) or 'S' (self-employed) quadrants, but Robert Kiyosaki advises that you move into the 'B' or business quadrant, devising a system that will make you money regardless of whether you are putting time into it or not.

At the end of the day, those who invest in real estate, regardless of the type of property, are the ones who manage to join the ranks of the rich.

About the Author: Alexandria P. Anderson is an Edina real estate agent that helps people to find and purchase Edina homes and properties in the Twin Cities of Minnesota. 

If you are going to get rich, you may have to give up everything you ever learned in school and from your parents and start from scratch. Now that's not a definite by any means. You may not have to start over. If someone along the line taught you, for instance that it doesn't actually take money to make money, then you may already be on the right track.

In the words of real estate guru and author of the bestselling "Rich Dad" book series Robert Kiyosaki, "It doesn't take money to make money. I often hear people say it takes money to make money. I disagree. We had no money when we started and we were also in debt. It also doesn't take a formal education."

Kiyosaki proceeded to cite the case of Bill Gates: the Microsoft mogul never actually graduated from college, but did that keep him from making his fortune?   No way!  Diplomas are nice, but they don't reliably add up to more money.

Robert Kiyosaki says that the only true prerequisites to being rich are that one must be determined and a quick study.  Beyond that, it's all about what you know. One of the first things you need to know about becoming rich is where you fall on the Cash Flow Quadrant.

Kiyosaki's "Rich Dad," actually his childhood best friend's father, is the one who introduced him to the Cash Flow Quadrant, a handy diagram that visually illustrates the ways in which individuals with different personalities relate to money.  It consists of a square split into four quadrants, labeled 'E' (Employee), 'S' (Self-employed), 'B' (Business), and 'I' (Investor).  If your aim is to become rich, you're going to have to set your sights on the 'B' and 'I' quadrants of the diagram.

One of the aforementioned traits necessary for becoming rich, being a quick study, has nothing to do with going back to school - the subject you must be able to learn about is actually a quite specific one: you must learn about real estate investing.  Kiyosaki claims that investing in real estate is the best way to get rich because it ties into so many aspects of modern life - almost every office building or storefront you glimpse while driving down the street, for example, represents money in the pocket of some canny investor.

This isn't about learning the minutiae of real estate investing and immersing yourself in every technical point and statistic - these things are important and useful for  investors, but this expertise can come in the form of a profession that you hire to make these in-depth decisions for you.  You only need to understand the subject matter to the extent that you can recognize an expert when you see one.

Now, this is quite different from being in the 'S' or self-employed section of the Cash Flow quadrant, because, a self-employed person doesn't own a business; he or she simply owns a job.  Those who own businesses, says Kiyosaki, can leave for a year and return to find your organization still intact and profitable-- being a businessperson means that you are able to delegate authority to the right people, and not take on an excessive amount of responsibility yourself.

At the end of the day, you only really need to have a certain level of knowledge regarding the ins and outs of real estate, and the experts you hire can guide you the rest of the way.  If you take one thing from reading this article, let it be this: if you aspire to be rich, it's time for you to make the move to the 'I' quarter of the Cash Flow Quadrant.

Alexandria P. Anderson is a licensed Minnesota Realtor that uses the Minnesota Real Estate Listings to help her clients to find and purchase Minnesota Land for Sale.