What should we do to prepare for a first home purchase?

Unless you have the opportunity for a cash purchase, most of the pre-purchase preparation of home buying (aside from finding the right location and home) is getting established credit, income, and assets.

Lenders scrutinize their clientele much more thoroughly now. To get the best rates and terms it is wise to have:

- 700+ credit score

- Little to no debt (ie., credit cards, car loans, student loans, etc.)

- Established career whether it be employment, self-employment, or business ownership with traceable and stable income

- Excellent financial records (IRA statements, bank statements, W-9s and W-2s, several years of tax returns preferably done by a CPA, P&L statements if business, etc.)

- 20% or more cash down toward the purchase price of your home plus closing costs (approx. 1% to 3% of the purchase price)

- Cash in the bank left over after the purchase, roughly 2 to 3 months of living expenses (inclusive of your new mortgage payment)

My landlord served a 3-day notice after I had paid my rent. I think the check was lost or delayed in the mail because it hasn't been cashed yet. I sent payment in before the deadline so why does the landlord think he can force me to pay it again?

Whether your check is in the mail or not, you are legally obligated to pay the rent by a certain date specified in your lease. Most landlords will allow a grace period (say the 5th if your rent is due on the 1st), but you are responsible to ensure that the funds are in the landlord's hands before the grace period expires. The 3-day notice can be served as soon as the rent is deemed late and yes, if the check was not cashed or payment received, you need to follow instructions given on the notice and provide the payment. Also, if your lease provides for late fees you may be asked to pay a fee in addition to the 3-day notice demand. The best bet is mail your check early.