| |
| |
|
Mortgage & Refinancing Information |
|
|
Sell Your Home and Invest at the Same Time
I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. If you are considering selling or have a home on the market that is not moving, it's time to think about financing the sale yourself. A good friend of mine bought a new home three months ago, and he has watched his old house sit unsold, while he's struggled paying two mortgages. I finally convinced him to get past his fears and finance the sale of his old home. He's thrilled that he won't have to make two house payments any longer, and he doesn't have to worry about that empty house. Here are a few basic tips I gave him that helped make the transaction a whole lot smoother. Be sure you have a well-written land contract that spells out every detail of the transaction. This is, in essence, your purchase agreement. Get yourself a title company and have your title agent file the land contract with the county. This makes it all legal. Be sure to get a good down payment. Five percent would be great, but if the buyer can't afford this, be sure to get a few thousand dollars. This will give the buyer a little equity and make the move to a conventional refinance loan much easier. Be sure the terms are very specific. Just like any mortgage, there should be an interest rate on the loan, a 30-year term, with a balloon payment. This means the payment is spread over 30 years, which makes it easier for the buyer, but you will get all of your money in a specified time, say 2-7 years. It's always a good idea to talk to your buyer about credit worthiness. You are extending credit, with the understanding that the buyer will go to a bank for a conventional loan to pay you off. That bank will want a decent borrower. So, it will help your buyer and you to educate him a bit on putting himself in better position to get the loan. Make sure he pays you with a check, so the bank can trace payments. Discuss credit cards and other monthly debt and be sure he knows to pay everything on time. Finally, explain that a couple of months worth of payments in savings (cash reserves) will be required to secure his loan, so he should plan ahead and start putting away each month. Other assets are also acceptable, such as retirement benefits, stocks, and forms of money that are easily accessible. Finally, instruct your buyer to do everything possible to maintain the house and even to improve it, as this will help with increasing the home's value, which will be a vital part of refinancing into a conventional loan. These are just a few of the important steps to seller financing. Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Mortgage Info You Can Actually Understand! This is a great time to Refinance Your Home or Buy a New Home -- the Mortgage Rates are so low, these days! It's always worth a shot to find out what the costs of switching over to a new mortgage would be, to see if that's the right move for you.Whether you are building your own house, buying a new property, gathering funds to do a renovation project, or Refinancing your current Mortgage at a much Lower Rate, you'll be looking for Funding -- Money, Money & More Money! Here are some commonly asked questions regarding funding for a Mortgage or a Home Improvement Loan. When Not To Agree To A Home Equity Loan Before you borrow money on your home's equity, think twice so you don't end up paying more than you expected.According to the Federal Trade Commission, homeowners-particularly elderly, minority and those with low incomes or poor credit should be careful when borrowing money based on their home equity. Sorting through mortgage elimination programs Mortgage elimination programs are all the rage these days. In the event that you don't know what they are, it's a really basic concept. Home Mortgages: Should You Apply Now? If you're thinking about applying for a new mortgage or refinancing your current mortgage, you might want to take action now.In its survey this week (the week of Aug. Rates May Be Rising: Mortgage And Refinancing Preparation Made Simple For You Buying a home is probably the single largest investment most people make in a lifetime. By preparing yourself and your credit before a home purchase or refinance, you can ensure a smooth finance process and can potentially save thousands on your loan. Making Sense of Mortgage Speak Applying for a home loan can be overwhelming. You will need to contend with mountains of papers, contracts, documents; and do lots of planning and coordination. Securing a US Commercial Mortgage What's the most efficient way to secure a US Commercial Mortgage? Work with a mortgage broker who specializes in this area. If you've ever applied for a loan, you're familiar with the mountain of paperwork you are required to complete during the process. What Exactly Is A Reverse Mortgage And How Does It Work? A reverse mortgage is a certain loan that allows the older generation to take their home equity and turn it into cash. With this type of loan the bank is actually paying you monthly out of the equity in your home. Sub-Prime Mortgage Company - 4 Signs of a Predatory Sub-Prime Lender If you have bad credit and are looking to get a home loan, odds are, you are going to be applying with a subprime lender. Subprime lenders specialize in financing for people with poor credit history or "less than perfect credit". Mortgage Terminology for the First Time Home Buyer Buying a Home for the first time can be a little "nerve racking". Mortgage terminology that brokers use everyday can leave you scratching your head or shaking your head pretending that you know what they're talking about. Home Loans and Mortgages - Time to Consolidate Loans? Home equity loans and lines of credit are useful tools for homeowners. They allow the homeowner to borrow against the value of his or her home for all kinds of purposes - home improvement, debt consolidation, vacations, and more. Thought Fixed Rate Will Give You a Respite from the Perils of Variable Rates! Think Again Slight increases in the interest rates raise your hackles. Tension grips your mind as to how you are going to make the extra payment. Mortgage Brokers or Banks: Which is Right For You? When you're looking for a home loan, you might work with an officer at a bank or other lending institution, or you might choose to work with a mortgage broker. The end result is the same - a new house, but the two types of jobs differ. The Debt Test: Are You Making Out a Mountain Out of Your Mortgage? According to the Council of Mortgage Lenders, first-time buyers are the most susceptible group of homeowners to debt, as they are more likely to have higher loan-to-value ratios and commit a higher proportion of their income to mortgage repayments. Despite their susceptibility to debt, there is evidence which indicates that insurance take-up and employee benefits provide recent first-time buyers with a safer foundation than the general population of mortgage borrowers. Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage Adjustable rate mortgages can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixed rate mortgages offer rate and payment security, but they are more expensive. Housing Bill - Changes in the Right To Buy Scheme Presently council tenants are able to purchase their rented property after 2 years of tenancy. However, this is about to change. Your Mortgage Rate Compare and Save When trying to obtain the best mortgage rate compare offers from several lenders or brokers. Know how much of a down payment you can afford, and find out all the costs involved in the loan. Option ARM - The World's Most Dangerous Mortgage Home prices have reached record levels, and in many parts of the country, homes have become nearly unaffordable. Real estate has replaced the tech stocks of the late 1990's as the hot investment, and everyone has sold their stocks and jumped into investment property. Reasons To Get A Home Equity Loan Using a home equity loan really depends on what your needs, wants and desires are that prompt you to take the home equity loan in the first place.The most common reason people obtain the loan is for debt consolidation however other uses include home improvements, educational expenses, unexpected family emergencies, medical expenses and in some cases for big ticket purchases. Reverse Mortgages Learn The Facts First! Reverse Mortgages, Most Common Features:Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.
|
| home | site map |
| © 2006 TIGER MEDIA |
