7 Top Home-Buying Mistakes People Often Make

Insanely low mortgage interest rates—and the knowledge that they’ll eventually go up again—make a lot of people feel like it’s time to buy a house right now. And maybe it is … if you go about it the right way.

Buying a home is a major purchase (to put it mildly), and there are plenty of ways to trip up. But don’t worry—we’ve got your primer right here.

1. Don’t … buy a house if you’re planning to move again soon.

If you’re a renter, it can be frustrating to write that rent check every month and have no home equity to show for it at the end of the year. But if you aren’t certain that you’re going to stay put for a few years, it’s probably not the right time to buy—equity or no equity. “Some people tend to buy a house knowing that they’re going to be relocating after a few years,” says LearnVest Planning Services certified financial planner Ellen Derrick. “Don’t buy property and automatically assume that you’ll be able to rent it out or sell it when you move.”

What to do: If you aren’t in an area with a strong rental market that would allow you to cover the mortgage on your home if you move elsewhere, then stick with a rental for now.

2. Don’t … bust your budget.

Shopping for houses can make you a little giddy. Look at this one! And this one! For a little bit more, you could get granite countertops, plus an office nook! You’re dealing with such large numbers when you’re browsing real estate that it might not seem like such a huge deal to stretch another $10,000 or $15,000 to get the home youreally love. But that’s not a game you want to play. “People look at the top end of their affordable monthly payment, and they don’t really think about what happens if their income goes down or they have to change jobs,” says Derrick. (If you’re wondering what percent of your budget should go toward housing, check out the 50/20/30 Rule.)

What to do: Get preapproved for a mortgage. Not only will this prove that you’re serious to your realtor and to home sellers, but it will also give you an idea of your upper limit. “Remember that the lender is there to make you a loan, and the more money you borrow, the better it is for them,” Derrick says. “They want you to max out. I would take the pre-approval number and cut about 20% off.”

3. Don’t … forget about added costs.

Buying a home isn’t just a matter of replacing a rental payment with a mortgage payment. There are also maintenance costs, utilities (which will likely cost more) and property taxes. “People tend to forget about both property taxes and insurance when they’re thinking about how much house they can afford,” Derrick says. “The actual monthly payment could end up being well out of your price range when you figure those things in.”

What to do: Ask the homeowners about their average utility costs and property taxes, get a homeowner’s insurance quote and budget about one percent of the home’s purchase price for annual maintenance. Then run the numbers to see if you can afford the home. (And don’t forget about closing costs. The average cost to close on a $200,000 mortgage is about $3,754, according to Bankrate.com, but your broker should be able to give you an estimate.)

4. Don’t … put down a nominal down payment.

Even with lenders tightening requirements to qualify for a mortgage, it’s still possible to buy a house with as little as 3% down. That’s not necessarily a bad thing, but it does mean that you’ll have very little equity in your home when you first move into it. So if something comes up, and you have to sell, you’ll end up owing more than you can get out of the sale once you factor in closing costs. It puts you in a precarious position. Even if that doesn’t happen, you’ll have to pay private mortgage insurance (PMI) every month until your equity in the home exceeds the 20% mark—and that could take years. (If you can’t put 20% down, your loan is technically considered risky—PMI is insurance that protects the bank if you default on your mortgage.)

What to do: Consider whether it’s prudent to buy a home now if you’re nowhere near having a 20% down payment. Yes, interest rates are low, but if you have to borrow thousands more because you don’t really have a great nest egg, it may be a wash in the end. You could avoid years of PMI, and owe a lower monthly nut, if you spend a year or two saving aggressively toward a down payment.

RELATED: I Want to Get a Mortgage Checklist

5. Don’t … neglect to get everything in writing.

You wouldn’t be the first home buyer to assume that the kitchen appliances come with the deal—only to discover an appliance-free kitchen on the final walk-through. “I’ve heard of buyers going ten rounds because the seller took the drapes down, and the buyer expected them to be left,” Derrick says. “I’ve seen all kinds of deals blow up over stuff like that.” Common points of contention: window treatments, hot tubs, light fixtures, shower and bath fixtures, ceiling fans and big appliances, such as washers and dryers. Replacing something you thought was staying could cost hundreds, so it’s not a small thing.

What to do: Go through your contract with a fine-toothed comb. If the item that you expected to be there isn’t, ask about it—and get it added in writing.

6. Don’t … skip the inspection.

Even if the home looks like it’s in winning shape, it would be foolish to skip a thorough once-over by a professional. “People tend to think that the inspection and the appraisal are the same thing,” Derrick says. “They’re not.” An inspector is there to spot the things you don’t know to look for, like if the chimney is in great shape or whether those little cracks in the foundation are a big deal. He’ll look for signs of water damage and check the insulation in the attic. If there are conditions that will need repair, you may be able to negotiate with the seller to drop the price. In other words, the inspection is worth every penny.

What to do: Get recommendations from your realtor or friends who’ve bought in the area, and have a professional inspection done before you close on the house.

7. Don’t … think a brand-new home entitles you to brand-new everything.

“A lot of people buy this nice house, and then look at the ratty car sitting in the driveway and think, ‘We better buy a new car,’” Derrick says. Or you suddenly have a formal living room but no formal living room furniture—so you buy some! It’s a mistake to feel like you suddenly have to upgrade all of your stuff to match the shiny new home. “You don’t want to get yourself into a pile of credit card debt just so you can keep up with the house,” Derrick says.

What to do: Live in your house for a while, so you can figure out what you really need. Then save up for it!

Thanks : http://www.learnvest.com/knowledge-center/7-top-home-buying-mistakes-people-often-make

8 Debt Collection Mistakes Not to Make

You think you’re on top of things … and then the phone rings. A debt collection agency claims that you owe them money. What do you do? Or perhaps the bigger question should be: “what do you not do?”

Too many people make mistakes with that first phone call—mistakes that can cost them dearly. Read on to know how to avoid these common debt collection faux pas.

1. Ignoring Those Calls

What we mean: Thinking that you can just ignore the calls when the number shows up on caller ID won’t make the debt—or the collector—go away.

It can be intimidating when you answer the phone and a voice at the other end starts talking about collecting a debt. But if you continue to ignore the calls, they will start to send collection letters—and possibly notice of legal action. Don’t let it get to that stage.

What to do: Answer the phone, remain calm and know your rights (more on that below.) Before they call again, get your paperwork in order (more on that later, too), so you won’t be caught off guard when you answer the phone. If they’re already sending letters, don’t toss them—read them and seek advice.

2. Not Verifying the Debt in Writing

What we mean: Always ask for written verification of the debt to be mailed to you. In trying to track down a debtor, companies may resort to something as simple as checking the phone directory. Do you want to be held responsible for someone else’s debt simply because that person has the same name as you?

What to do: Explain to the caller that you do not make any decisions on the phone, and that you need written proof of the debt. (By law, they must provide it.) Request that they mail you all of details of the debt, including the name and address of the borrower, the amount borrowed, the date the debt was incurred and, if possible, a copy of the original debt application or approval letter.

3. Not Knowing the Legal Status of Your Debt

What we mean: Some debts are subject to a statute of limitations. While the actual amount of time varies from state to state, this means that if the creditor has not made contact with you in a specific time period (typically five to seven years), that debt can legally be struck from the books.

What to do: Check the debt statute of limitations for your state. The statute applies when the company owed the money has failed to make reasonable efforts to obtain the money owed, not when you have ignored attempts to collect. When does the clock start ticking? Usually from the date of last activity on the account, but this may vary by state.

If the statute of limitations has expired on your debt, write to the debt collector, advising them that it has expired, and not to contact you anymore. Sending the letter by certified mail ensures that they have received it. If the statute has not passed, talk to a legal or financial professional experienced in debt collection to learn about your repayment options.

4. Providing Credit Card Information or Agreeing to a Payment Plan Before Seeking Advice

What we mean: Do not give your credit card or bank info to the person on the phone without first requesting—and reviewing—written evidence of the debt. A huge business in today’s debt collection market is zombie debt, or debts that have expired but have been purchased by one or more debt collection agencies. As soon as you acknowledge the debt, and offer to make payments, the debt is reactivated, making you fully liable.

What to do: After receiving written verification of the debt, seek independent financial advice. The collection agency will want to receive their money in the time that’s most beneficial to them, but a financial advisor may be able to help you find alternative repayment options. Once you’ve agreed to a plan, it can be difficult, but not impossible, to make changes. But even with an agreement made via phone, you are entitled to receive written details about the agreed-to plan. And be sure to seek financial advice as soon as the paperwork arrives.

5. Not Knowing Your Legal Rights

What we mean: Even if you owe money, you still have legal rights to protect yourself from debt collectors who may not be following the rules. The Fair Debt Collection Practices Act is made available by the FTC and offers a clear explanation of your rights as a consumer. For instance, did you know that a collection agency must identify themselves clearly, must provide any written evidence you request and can only call between certain hours?

What to do: Download your free copy of the Fair Debt Collection Practices Act (FDCPA) (pdf). It may look dense and be full of legal jargon, but it’s actually very straightforward when it comes to explaining what a collection agency can and can’t do when they contact you. And be sure to let anyone who calls regarding a debt know that you’re aware of its contents.

6. Seeking Advice From the Wrong Source

What we mean: Look for guidance from the National Foundation for Credit Counseling, or a certified financial planner or a legal advisor with specific experience in debt collection. Some people make the mistake of calling their state’s treasury or revenue office in the belief that they can help, but they cannot provide individual legal advice.

Warning: Not all advisors are created equal. You wouldn’t see a heart doctor for a stubbed toe, so it only makes sense to seek out professionals with experience in the field of debt collection. They will be more up to date on current legal and financial developments, and can help save you a lot of headaches in the long run.

What to do: Find a qualified financial planner. If seeking legal advice, ensure that the attorney is qualified to practice in your state, and that the person’s area of expertise is relevant to your situation. (Be wary of any free online sites that purport to give financial advice, but that are, in fact, linked to collection agencies.) And remember that you may not receive the advice you’d like to hear—even the most specialized professional cannot make your debt magically disappear.

7. Not Knowing Who Is Collecting Your Debt

What we mean: Do you know which company you’re paying the money to? Is it the same company that you originally borrowed from? Or is it a collections agency? If so, the debt may have legally expired.

Given the various economic upheavals of the past decades, banks have failed, debts have been passed from one company to another and the company calling to collect may not be the same company from whom you originally borrowed money.

Furthermore, as debts pass the statute of limitations, debt collection agencies buy them from the original creditor for pennies on the dollar in the hopes of recouping huge profits. Even though the statute of limitations may have passed, if an agency can get you to admit to owing the debt, liability is revived and they can legally collect the debt. It’s not unusual to have multiple companies all attempting to collect the same zombie debt, and if you’re not careful, you could end up having to repay them all.

What to do: Go back to that written proof. Follow the trail to see who is now contacting you about the debt, and how they came to be in possession of it. This can help you to determine whether the debt has been legitimately passed to a collections agency or whether it has expired and is now being pursued as a zombie debt.

8. Not Reporting Harassment

What we mean: Harassing behavior may include calling outside permitted hours, refusing to provide written proof of debt and threatening arrest or imprisonment. The number of complaints against collection agencies has skyrocketed in recent years, and the judicial system is taking the matter of harassment very seriously. Last year, an Atlanta-based company was forced to forgo collection on more than 31,000 delinquent accounts (exceeding $15,000,000) as punishment for violating collections laws.

What to do: Know your rights. If a caller appears to be in violation of the Fair Debt Collection Practices Act, remind them of that fact—and tell them that you will call your state attorney to report the harassment. And remember that it’s never too late to report harassment. While there may be no legal recourse for you, your complaint may be part of a thick file that eventually helps to shut down those who continue to threaten others.

Readmore : http://www.learnvest.com/knowledge-center/top-debt-collection-mistakes-to-avoid

Avoiding Common Meeting Mistakes

Successfully organizing meetings is an under-appreciated business skill. With the umpteen details meeting and event planners need to handle, mistakes are bound to be made, and sometimes heads will roll as a result. To make certain that yours isn't one of them, here are some common meeting blunders to rise above.

Forgetting to check dates

Before finalizing any dates for your meetings or events, check that they don't overlap with any religious, public, state, or federal holidays. Also, consider avoiding an overlap with any major sporting events, especially if you're looking to attract a predominately male audience. At the beginning of the calendar year, generate a checklist of all the upcoming holidays and events so that you don't let one slip by you. It's so easy to do!

Booking a site before making a visit

Often when you're organizing an event at a destination many miles from home, there's not enough time or money in the budget to make a site visit. Big mistake! Why take the risk that everything won't be fine on the day of the event or rely on someone else's judgment? This is particularly critical for larger meetings and events. In addition, checking out the scene beforehand allows you the opportunity to meet and build a rapport with the staff you'll be working very closely with on the day of the event.

Failing to market your event

It's really quite simple: In order to get people to attend your event, you need to let them know about it in plenty of time. It's all about marketing and communication, which is part and parcel of your planning and organizing process. The longer you wait to inform potential attendees, the stronger the chance that they'll have made alternative plans for your meeting dates. Communicate your message in plenty of time so that your event is their number one priority.

Signing contracts that lack specifics

One meeting planner had her day in court when she cancelled a meeting because the hotel she booked had not made, in her opinion, sufficient progress on its planned renovation. The hotel argued differently and, in fact, won the case. The written contract had specified that "substantial progress" would be made prior to the meeting date. Being such a subjective phrase, it was open to different interpretations. Make sure that your contracts are ironclad with undisputable details. Avoid phrases like "to be negotiated" or "to be determined at a later date."

Failing to plan

Fail to plan, and you're laying yourself open for disaster. Far too many pieces of the puzzle need to be put together for you to just wing it or pay lip service to a plan. Vow to be as thorough and meticulous as possible. Check and recheck details. Discuss your event with people not involved in the business to get outsider opinions. Create checklists and checklists of checklists. Cover all your bases. The more thorough you are, the less chance of failure and more probability of success.

Neglecting to check references

Having a gut feeling about someone is great, but always check to make sure he's as good as he says he is. Yes, it will take some extra time to check references, but it's well worth the effort. Why take the chance of spoiling your important event with a supplier who lets you down at the last minute or supplies you with second-rate equipment or poor-quality service? A key question to ask the reference is, "Would you use this supplier again for your next function?" You know what to do if the answer is negative!

Leaving important details to the last minute

Putting your meeting together takes time, and the more you have, the better the chances of making fewer mistakes. The more rushed and panicked you are, the more likely you are to forget some of the essential (and sometimes most obvious) things. Use your checklists religiously, and handle details in the early planning stages. Leaving the basics to the last minute will undoubtedly cost more money, as you'll probably incur rush charges, and it will definitely add unnecessary stress to your life!

Letting someone else do the planning

So you want to take the easy way out, and you find yourself a professional planner to handle all the details. Can you afford to just sit back in the hope that this wonderful person performs magic? Just because you hire some assistance doesn't mean you're out of the picture. On the contrary, you now take on the role of steward, which makes you responsible for directing all the operations. Let others do the running around on your behalf, but always have a visible presence in the background making sure that everything runs smoothly.

Neglecting contingencies

Another aspect of your planning process involves developing contingency plans. Unfortunately, the chances are pretty high that something you planned for won't necessarily go as arranged. So what's your backup? If you don't have one, all your original plans could be destroyed in an instant, and you'll be scrambling to put a second strategy into operation. Have a Plan B ready "in the wings" just in case you need it.

Trying to save money

With tight budgets and a boss breathing down your neck and expecting you to do more with less, the temptation to make vendor decisions based solely on price is strong. Yes, you'll always find someone who's prepared to under-price services just to get the business. But how good and reliable are they? Cheap prices and good quality usually don't correlate. So the next time you're tempted to make a buying decision based entirely on price, think again!

Readmore : http://www.dummies.com/how-to/content/avoiding-common-meeting-mistakes.html