Homeownership is an important goal for many people, and if you are considering buying a home, you will be looking to make one of the most significant and important investments of your lifetime. However, there are many complex financial factors involved in a home purchase, as well as a variety of legal issues that may arise during a transaction. If you are a first-time homebuyer, you will want to consider the following tips:

• Build and maintain a good credit score - Your credit score will affect your ability to obtain a mortgage as well as the interest rate on your loan. You can increase your credit score by paying bills on time and avoiding large credit card balances. You will also want to avoid doing anything that may decrease your credit score during the process of buying a home, such as closing credit card accounts, making major purchases, or taking out new loans or lines of credit.

• Get preapproval for a loan - By working with a lender to determine the amount of a loan that you will qualify for, you can understand what you will be able to afford, ensuring that you will be able to make an appropriate offer on a home. Preapproval will also show a seller that you have the financial means to buy a home, making it more likely that they will accept your offer.

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Thinking of investing in real estate? Investment deals can be complex, and those not familiar with real estate terminology or the banking industry can be taken advantage of. There are many scams surrounding real estate investing, and one type of scam that seems to be common in the Kane County area is the opportunity to join a real estate investment club.

Generally, this scam operates by asking that investors pool their money to buy properties that will be renovated or rented. Investors who may be priced out of investing in real estate on their own are promised large sums of money in return once the property has been sold.

To be fair, real estate investment clubs can be legitimate. However, some clubs make untrue and inaccurate representations about how the club is structured, what loans may be involved, and what the probable returns will be on these investments.