After you've been pre-approved for a loan, the right real estate agent can assist you in making sure the rest of the process runs smoothly. In the United States, real estate agents assist sellers in marketing and selling their property for the best price and terms. When acting as a buyer's agent they assist buyers by helping them purchase property at the best price and terms.

Real estate agents work for a broker either as an independent contractor or an employee. Some brokers are nationally franchised like Century 21 or Prudential. To earn the designation of a Realtor, an agent must belong to the local and State Board of Realtors and also be a member of the National Board of Realtors. These Realtors operate under a strict code of ethics and sponsor the Multiple Listing Service (MLS).

Most real estate agents work for a flat fee or a commission (usually 4-6% of the purchase price) - or you could decide to use a discount broker who takes a lower fee in exchange for you doing the legwork (e.g., finding a property, setting up financing, etc.). The real estate commission is subtracted from the seller's proceeds. This commission is then divided between the broker and the real estate agent representing the seller, and the broker and real estate agent representing the buyer.

What does a real estate agent do?

Should you decide to work with a real estate agent from the start you should expect them to:

- Determine how much house you can afford including a down payment.

- Help you calculate your monthly payment.

- Explain the different types of financing that are available to you.

- Help you find the right house which meets your needs.

- Arrange appointments for you to view several homes.

- Assist in helping you make an offer and negotiate the deal.

- Prepare the sales agreement and handle the close.

Most will want you to enter into an exclusive Buyer's Agent agreement which specifies the term of representation, commission structure, and duties. You can usually switch agents at a later time if you're not satisfied with their performance. You may also elect to choose one from the Internet or do your own house-hunting or research online.

How to pick the right real estate agent

The best way to find a real estate agent you're comfortable working with, is to ask friends and family who have recently used one to buy or sell their home. Check with the State Board of Realtors or the Better Business Bureau to review an agent's background. Call the broker's office or visit their website to see how long the real estate agent has been licensed with that broker. How many transactions has the agent handled in the past year? Have they all been sales transactions or purchases? Stop by the office to see how the support staff treats you.

After all, the entire home buying process can take months to complete. You'll want to pick someone you feel comfortable working with from start to finish. Once you pick a real estate agent let them know what type of lender you're planning to use, or if there is someone else they can recommend.

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Municipal Bonds are known to be tax advanaged vehicles for investing money, but that tax advantage sometimes does not extend to individuals subject to the Alternative Minimum Tax (AMT).

The AMT was originally created to prevent millionairres from using deductions and other accounting tricks to avoid paying income taxes. It does this by in essence, creating a seperate tax code with its own rules and less generous deductions. When the AMT was first created in the 1970s, it only applied to a few thousand indivuals with high incomes but because it is not indexed to inflation, it now applies to millions of people.

A brief issued by the Congressional Budget Office (CBO) (No. 4, April 15, 2004), concludes:

"Over the coming decade, a growing number of taxpayers will become liable for the AMT. In 2010, if nothing is changed, one in five taxpayers will have AMT liability and nearly every married taxpayer with income between $100,000 and $500,000 will owe the alternative tax. Rather than affecting only high-income taxpayers who would otherwise pay no tax, the AMT has extended its reach to many upper-middle-income households. As an increasing number of taxpayers incur the AMT, pressures to reduce or eliminate the tax are likely to grow."

How this Impacts Municipal Bonds

Amongst the many items that can no longer be deducated in the AMT include interest on private activity municipal bonds. These bonds arevtypically municipal bonds that are issued to fund private projects like sports stadiums and hospitals as opposed to public projectsl like schools, roadwork, sewer systems, etc.

While it's easier to recognize and spot a private activity munis when purchasing individual bonds, this becomes much harder when purchasing a municipal bonds mutual fund or a muni etf where many different bonds are packaged together.

In response to this, many financial companies have created AMT free funds and ETFs. They generally pay a lower rate but remove any chance of the revenue qualifying as income under the AMT.

If you are unsure about your AMT status or the AMY status of a certain fund or ETF, be sure to consult your tax or investment advisor.

More Municipal Bond Articles

• Municipal Bond ETFs
• Pre-refunded Municipal Bonds
• Private Activity and Taxable Municipal Bonds
• Open-Ended Tax-Free Municipal Money Market Funds
• Closed-Ended Tax-Free Municipal Money Market Funds
• How to Buy New Issue Municipal Bonds
• Municipal Bonds and the AMT

CNBBankDirect, a division of Citizens National Bank, has been previously featured on BestCashCow.com, but the bank recently redesigned and re-launched their website to make it easier than ever to obtain not only information on the bank's products, but also general financial news and articles for the everyday consumer. This is a refreshing change from many bank sites that only seem interested in promoting their own products. The Savings News section of CNBBankDirect’s website includes articles on things such as identity theft, retirement health care costs, and how to use Twitter to solve credit card problems with your bank. The bank's About Us section also includes links to other financial websites, including BestCashCow.com, to promote well-rounded, educated consumers.

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