Complete Homebuyer's Checklist

1. Find a Buyer's Realtor/Agent

• A buyer's agent will represent only you and have a fiduciary responsibility to look out for your best interests.
• Buyer's agents may ask you to sign a buyer's broker agreement (not common practice), but it is the seller who pays the commission.
• Interview agents until you find an agent you trust and with whom you feel comfortable.
• Common questions:
• How long he/she been a realtor/agent?
• Is he/she part-time or full-time realtor/agent?
• How many homes have he/she sold in the past 6 month or a year?
• Highly recommended to find a local realtor who knows the area you are interested in. 

2. Get Pre-Qualified / Pre-Approved

• Order a free credit report online and fix mistakes, if any.
• Ask your agent for a referral to a mortgage broker, but also compare rates offered by your own bank and / or credit union.
• Ask the lender to give you a loan preapproval letter, which means it will verify your income and pull a credit report.
• Loan preapproval letter is required to submit an offer to a home.
• Determine your maximum loan amount, but choose only a mortgage type that you understand and a payment level with which you feel comfortable, which may very well be less than the maximum for which you are approved.
• Financial advise - keep the monthly loan payment at 30% (1/3 of your total monthly income) of your income, in order to have a well-balanced financial plan.
• To better understand your up-front cost, closing costs, ask your load officer for a good faith estimate.
• Good faith estimate - breaks down your monthly payment and you'll see everything that is included (not including utilities and other monthly bills).

3. Look at Homes for Sale

• Use web-sites like ZipRealty or MLS Listings to search for homes. You can also ask your agent to find homes for you.
• Check crime-rate from multiple sources.
• Setup alerts in area you are interested in to get news updates.
• Zillow let's you check the home value, historic price, and market trend and more.
• Ask your agent to give you MLS print-outs of comparable sales in your targeted neighborhood (aka: Competitive Market Analysis CMA).
• Competitive Market Analysis - gives you an idea of recently sold similar nearby homes; i.e. how much they were listed for vs. how much they were actually sold at, which provides a better range to narrow your bargain for negotiation.
• Consider all homes on the market, including fixer-uppers, REOs, foreclosures, short sales and those overpriced homes with longer Days On Market (DOM).
• Take detailed interior and exterior pictures of the visited homes that appeal to you.

4. Write a Purchase Offer (KNOW all your costs beforehand)

• Consider writing seller's market offers in sellers markets and buyer's market offers in buyer's markets.
• Select a home offer price based on the amount you feel a seller will accept or counter.
• Prepare for multiple offers if the home is considered desirable in a hot location.
• If your offer is rejected, ask your agent to explain why and don't repeat that mistake with your next offer.
• Items you will need to make an offer:
• Pre-approval letter from your Loan Officer.
• Earnest Money Deposit minimum of $1,000; the more Earnest Money Deposit you put in, the more serious your offer looks.
• Proof of funds available for down-payment; i.e. bank statement.
• Closing Costs Breakdown:
• Excludes down-payment and Earnest Money Deposit
• HOA Fee (applies to ONLY Condo and Townhomes)
• Appraisal Fee
• Inspection
• General Inspection
• Pest Inspection
• Roof Inspection
• Document Preparation Fees
• Credit Report Fee
• Loan Origination Fee
• Loan Discount Fee (optional, if buyer wants to pay lower rate for a fee)
• Primary Mortgage Insurance PMI (applies if down payment is less than 20%)
• Title Changes Fee
• Taxes
• With impound - collected 50% (6 months taxes) + title fees
• Without impound - not allowed for less than 20% down-payment
• Home Insurance
• 1st year insurance is paid up-front, then next year's annual amount is collected monthly as you go
• Home Warranty
• Sample Reports that Help better Prepare You:
• Purchase Agreement (Contract)
• Settlement Statement (HUD-1)
• Inspection Report
• Pest Report

5. Negotiate and Write Counter Offers

• Expect the seller to issue a counter offer.
• If the seller counters at full price, continue to negotiate.
• During offer negotiation, share personal information about your family to give the seller a reason to care about you.

6. Make an Earnest Money Deposit

• When your offer is accepted, deposit your earnest money check with the appropriate party.
• This is normally done at a Title company.
• Do not ever make your check payable to the seller, earnest money is always paid to the title company.
• Your offer should contain contingencies that will return your earnest money deposit to you if you cancel the contract.

7. Open Escrow / Order Title

• Your agent or transaction coordinator will open escrow and title, if the listing agent hasn't already done so.
• Ask for the escrow officer's name, phone and escrow file number.
• Give this information to your lender and your insurance agent.

8. Order Appraisal

• Your lender will require an advance payment for the appraisal.
• Sometimes, the lender will order the appraisal themselves.
• If you receive a low appraisal, discuss options with your agent.
• Ask for a copy of the appraisal.
• Further negotiate the price based on appraisal.

9. Comply With Lender Requirements

• Lenders may ask for additional information.
• Do not make home buying mistakes such as altering your financial situation while in escrow.
• If you made a full cash offer, changing into 30 year mortgage makes a huge difference.
• When the file is complete, the lender will submit it for final underwriter approval.

10. Approve Seller Disclosures

• Read and question items you do not understand on the TDS, Seller Property Questionnaire, natural hazard report, pest inspection / completion and other documents such as a preliminary title policy.
• Realize you have 10 days to cancel if lead paint is a health hazard.
• Read every document in its entirety; ask questions about all seller disclosures.

11. Order Homeowner's Insurance Policy

• Order your homeowner's insurance early.
• Sometimes previous claims by a home owner can make it difficult to get insurance.
• Get replacement coverage.

12. Conduct Home Inspection

• Hire a reputable home inspector.
• Get a quote from multiple inspection companies, to better understand the price range.
• Bring a home inspection checklist with you.
• Attend the home inspection.
• Take pictures of your things you find yourself.
• Questions to Ask from Home Inspector:
• What does your inspection cover?
• How long will the inspection take?
• Choose an inspector who carries "Errors and Omissions" coverage, in case an inspector misses a major issue.
• Do you offer to do repair or improvements based on your findings?
• What type of inspection report do you provide and how long will it take to receive the report?
• Will I be able to attend the inspection?
• Does the house meet "Up-to-Code" condition?
• How bad is a issue?
• How soon the problem should be repaired?
• How much will it cost?

13. Issue Request for Repair

• If the home inspection turns up health and safety issues, issue a request for repair by asking the seller to address those issues or give you a credit for them.
• Realize no home is perfect, and the inspector will find faults.
• Normally inspectors also provide an estimated cost of repair.
• Based on how much the repair cost is, you can use it to further negotiate the price down and/or have it all fixed before closing the escrow.
• Be reasonable.

14. Remove Contingencies

• By default, California C.A.R. contracts give you 17 days to remove contingencies.
• Make sure your loan is firm and the appraisal is acceptable before removing your loan contingency.
• If you do not remove contingencies, the seller can issue a request to perform and then cancel the contract, on top of demanding your deposit.

15. Do Final Walk-Through

• Do not pass up doing a final walk-through.
• Inspect the property to make sure it's in the same condition as when you agreed to buy it.
• If you find a serious issue, address it now before you close.

16. Sign Loan / Escrow Documents

• In southern California, you will sign escrow documents shortly after opening escrow.
• In northern California, you will sign escrow documents along with your loan documents near closing.
• Bring a valid picture ID.

17. Deposit Funds

• Bring a certified check payable to escrow.
• Expect escrow to pad the amount, so you will receive a refund after closing.

18. Close Escrow

• Your property deed, seller's reconveyance and deed of trust will record in the public records.
• Title will notify you and your agent when it records.
• After recordation, unless your contract specifies otherwise, the property is yours -- change the locks immediately.

19. After Move-In

• Be sure to change all your door-locks.

20. Live happily ever after! :)

Excellent Tips by Warren Buffet

LifeHack: Use a binder clip to air out your sponges

Best of the Web in One Picture

Visualization Periodic Table

A Period Table of Visualization Methods

http://www.visual-literacy.org/periodic_table/periodic_table.html

Amazing Graphics Show How Much Fruits Have Changed Since Humans Started Growing Them

Righteous man...

An act during a prayer does not make one righteous, but acts followed after the prayer does. - Prophetic saying.

Life Hack: Creating Invisibility

Making a screw flush with the surface is like creating invisibility.

Numbers after Millions

Health: Food Service Cuts of Beef

Know your beef cuts and where it is cut from.

Unexamined life...

"The unexamined life is not worth living!" - Socrates

Principle of Algorithm...

"Perhaps the most important principle for the good algorith designer is to refuse to be consent." - Aho, Hopcroft, and Ullman, The Design and Analysis of Computer Algorithms, 1974

A question we should always ask is: Can we do better?

Words of Winston Churchill came true...

"Power will go to rascals, rogues, freebooters...
All leaders will be of low caliber & men of straw...
They'll have sweet tongues & silly hearts...
They will fight amongst themselves for power & the two countries will be lost in political squabbles...
A day would come when even air & water will be taxed."

We as Society worked too hard to make his Words true...

Robert Prechter Jr's Chapter 33: A Short List of Imperative “Do’s” and Crucial “Don’ts”

Recall the old Chinese character that entwines crisis and opportunity in the same glyph. Position yourself to take advantage of what's coming.
Don't:

• Generally speaking, don't own stocks.
• Don't own any but the most pristine bonds.
• Generally speaking, don't invest in real estate.
• Generally speaking, don't buy commodities.
• Don't invest in collectibles.
• Don't trust standard rating services.
• Don't presume that government agencies will protect your finances.
• Don't buy goods you don't need just because they are a bargain. They will probably get cheaper.

Do:

• Fight the inertia that will keep you from taking action to prepare for the downturn. Start taking steps now.
• Involve your significant others in your decisions. Put your home or business partners in tune with your thinking before it's too late.
• Talk to heavily invested parents or in-laws who may be planning to pass on their investments to you. See if you can get them to become safe and liquid.
• Think globally, not just domestically.
• Open accounts at two or three of the safest banks in the world.
• Invest in short-term money market instruments issued by the soundest governments.
• Own some physical gold, silver and platinum.
• Have some cash on hand.
• Make sure that you have insurance policies only with the safest firms and make sure that they deal only with safe banks.
• If you are so inclined, speculate conservatively in anticipation of a declining stock market.
• Sell any collectibles that you own for investment purposes.
• If it is right for your circumstances, sell your business.
• Make a list of things you want to buy at much lower prices when they go on "liquidation sale."
• If you want to have kids, hurry up. Statistics show that fewer people feel like doing so during a bear market.
• Give friends a copy of this book.
• Keep up with our Bear Market Strategies page, a continually updated report on-line at http://www. elliottwave.com/conquerthecrash.
• Contact the services mentioned in this book! I am a market analyst and forecaster, not a banker, insurer, money manager, institution rater or depression strategist. These services can help guide you through the maze. Some of them can help you design your whole strategy in a matter of days.
• Plan how to take advantage of the next major uptrend. For example, go back to school during the decline and come out with extra skills just as the economy begins to recover. Apprentice in a job for low pay and learn enough to start your own business at the bottom so you can ride the next big upwave of prosperity. Investigate troubled businesses to buy at the bottom at deep discounts.
• Smile! because you will not be jumping out of the window; you'll be preparing for the incredible opportunities listed in the next chapter.

Source: http://www.elliottwave.com/club/protected/ctc/resources/chp_33.aspx

21 Suggestions for Success!

By H. Jackson Brown - (most of it is common sense)

1. Marry the right person. This one decision will determine 90% of your happiness or misery.
2. Work at something you enjoy and that's worthy of your time and talent.
3. Give people more than they expect and do it cheerfully.
4. Become the most positive and enthusiastic person you know.
5. Be forgiving of yourself and others.
6. Be generous.
7. Have a grateful heart.
8. Persistence, persistence, persistence.
9. Discipline yourself to save money on even the most modest salary.
10. Treat everyone you meet like you want to be treated.
11. Commit yourself to constant improvement.
12. Commit yourself to quality.
13. Understand that happiness is not based on possessions, power or prestige, but on relationships with people you love and respect.
14. Be loyal.
15. Be honest.
16. Be a self-starter.
17. Be decisive even if it means you'll sometimes be wrong.
18. Stop blaming others. Take responsibility for every area of your life.
19. Be bold and courageous. When you look back on your life, you'll regret the things you didn't do more than the ones you did.
20. Take good care of those you love.
21. Don't do anything that wouldn't make your mom proud.

Re: Interview Tips

I understand that this has been said so many times by so many people, yet, it is still a common mistake among so many individuals while preparing for an interview. For that reason, here are few quick tips:

1. Prior to agreeing for an initial interview (whether telephonic or in-person), if recruiter proposes a time, ask if there is another time slot available, because you already have another interview scheduled. However, DO NOT persist and always leave a back-door.
1. This is a simple self-marketing strategy, to let the recruiter(s) know that you're in-demand.

2. READ the job description WELL
1. I am sure you will always find good questions from the job description itself. And by doing so, you will send a message that you did your homework and remain interested.

3. PREPARE your story
1. What was the first spark that ignited you to pursue this career / industry?
1. i.e. Conducting an internship / fellowship at ABC company OR independent project / research helped me to find my passion in XZY areas and enabled me to further strengthen my skills.

4. AVOID lips talking
1. Instead of "humming" (i.e. um-hmmm) as an indication of "acknowledgement," say those words. You may underestimate these small details, but they do count towards evaluation and building the first impression of you.

5. ASK at least a question
1. Simple question like:
1. How would you describe a fit candidate for this position?
2. What would you expect a hired candidate to achieve in first 30-60 days?

6. Not "WE" use "I"
1. Never use "we" accomplished 123, always use "I".
1. i.e. I contributed to the team…
2. I was able to do…

7. Control the interview as much as you can
1. This may sound impossible, but if you master the art of speaking, you can certainly control at least certain percentage of it.

Hope this is useful and feedback is always welcomed!

3 types of People

There are 3 types of people:
1) Those who let things happen.
2) Those who witness things happen.
3) Those who MAKE things happen.

Which one are you?

The Art of Stealing!?

If something is stolen and is on your possession, How should you really feel? Instead of feeling as the "owner" of it from that moment, it should remind you of your misconduct/misbehavior or the art of stealing every time.

Food for thought :)

Small Business Management Skills

What is the most common mistake in private practice(s) of say - doctors? lawyers?
The bottom line is not having business and soft skills and not having a clear objectives of the entire process when dealing with their clients/patients. Just to take a closer look, I would like to make two quick points specific to doctors and lawyers.

Doctors
It is very important for patients to feel comfortable with their doctor; yet, unfortunately not all doctors know this. For example: if you go to see your dentist, you would expect your doctor to explain everything clearly and spend enough time to hear your concerns and advice accordingly - yet again not all doctors do this. Although everything about dentistry is available online, but hearing it from your doctor is always better - it sends a message that your doctor indeed cares about his/her patient.
Bottom Line: if you would like to get a good dental treatment, I would advise to go for a private practices rather than chain of dental clinics or "franchise," because those who have their own businesses - they take care of their customers and make sure their customers return, where it is not necessarily the case with "franchise" of dental clinics.

Lawyers
Although majority of lawyers have their own practice, they need to establish soft skills and most of all concise procedure and coverage to justify their cost. For instance: if an immigration attorney is handling a clients' paperwork, it is a best-practice to explain the complete procedure of how things will be done and what the client should expected to do and/or to be prepared for by the attorney.
Bottom Line: attorneys must have a clear well-written procedures for clients with all possible options and what to do in given scenarios, so that there is no misunderstanding between the client and their expectations from an attorney. Making every step clear to a client will save an attorney a lot of time from answering customers' questions during the process (where an attorney needs to be focusing on handling the paperwork) over the phone or email. Furthermore it will give the client a peace of mind and a positive perception of an attorney.

"We have to do..."

"We do what we have to do in order to do what we want to do!" (Movie: The Great Debaters, 2007)