Buying With No Down Payment

Many home buyers have a difficult time savings up for a down payment.  While this is true of first time homebuyers, it is true of repeat home buyers as well.  Age, level of income, and level of debt are all factors that have an impact on the ability to save up for a down payment.

There are many lenders that recognize that eligible borrowers would be denied for a home mortgage if the traditional 20 percent down payment rule is enforced.  Perhaps this is why lenders have begun offering programs to homebuyers that have little or no down payment.

This provides hope for many homebuyers since it removes the stress of trying to save up such a large amount of money.  Even though the homebuyer gets a break from saving for a down payment, there are extra costs included in the mortgage that, over time, might end up being that 20 percent down payment.

In some cases, lenders increase the mortgage interest rate for borrowers that do not pay a large down payment.  You might wonder how the lender can do this.  Evidence has shown that borrowers that pay a lower down payment are higher risks for defaulting on mortgage loans.  For this reason, lenders have begun assessing a higher interest rate on these borrowers than those who do not have a down payment.  Think of it as the cost you incur for not having down payment.  Ultimately, the same mortgage costs you more when you don’t have a down payment that it would if you had.

Private mortgage insurance is another cost that you incur when you make little or no down payment on your home.  This insurance, also called PMI, is required by the lender when you make a down payment that is less than 20 percent of the price of the home.  This insurance is designed to protect the lender in case that you default on your loan.  If you are unable to pay your mortgage, PMI pays our lender.

The amount that you pay for PMI will depend on the purchase price of your home and the down payment you make.  The lower your down payment the higher the PMI will be.

The good news is that you can cancel PMI once your mortgage payments have gained you 20 percent equity in your property.  At this point, the lender deems you are at a lower risk of defaulting on the home loan.  Make sure you remain current on your payments so that you are able to cancel the insurance once you have reached 20 percent in equity.

Obviously, the ability to purchase a home without a down payment comes at a cost.  The increased interest rate and private mortgage insurance increase the monthly payment you have on your mortgage.  If you want to avoid these extra costs, take some steps to save up as much of a down payment as possible.  Even if you aren’t able to completely eliminate these costs, reducing them is still a viable solution.

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For Sale: 4BR/5BA Single Family House in College Station, TX, $985,000

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Home Buying Versus Renting

It can be a difficult decision, but it’s one that has to be made at some point in your life.  Renting a home has benefits of its own.  For example, if you don’t like your location, you can easily move to another one once your lease has ended.  There are also drawbacks to renting that lead many people to buy their own home.  When you rent, you are paying to live in a space that will never be yours.  Let’s consider the aspects of home buying versus renting a home.

Home Buying

The true cost of home buying, is more than the down payment and mortgage.  There’s also private mortgage insurance (if your down payment was less than 20% of the home price), homeowner’s insurance, property taxes, and maintenance.  These costs can increase your monthly payment by 40%.

In home buying, each payment you make on your mortgage brings you one step closer to home ownership.  As you pay on your mortgage, you increase the equity you have in your home.  This equity can be prove to be beneficial if you want to sell your home or use it to borrow money.

It’s a pretty well-known fact that mortgage interest payments and some property taxes are tax deductible.  For many, this is a very good reason for home buying.  Not only are you investing your money in a valuable asset, you get a break from the federal government for doing so.

When home buying, home and property maintenance is your responsibility.  You will either have to maintain the home yourself or pay someone to do it.  In either case, it is an additional concern that you must take into account.

Renting

Financially speaking, maintenance is not very much a concern.  It is the landlord’s responsibility to fix the plumbing if something breaks down. 

Moving is easier when you rent.  Of course, this depends on the amount of belongings you have, but generally speaking, people who rent tend to have less “stuff” than people who own.

Extra fees are usually non-existent.  While some landlords require tenants to have renter’s insurance, the premiums are much lower than homeowner’s insurance.  When you rent, all you have to worry about is the rent and utilities.

You could rent a home for thirty years and, at the end of that time, not have accumulated any equity in the property.  When, if you had bought rather than rented, in thirty years, you would have a pretty sizable asset.

Rent increases are inevitable.  You can expect to continue to pay higher rent each year.  The only thing you can do about a rent increase is move to a property that has a lower rent.

Both home buying and renting a home have their advantages and disadvantages.  When you are making a decision about home buying, it is wise to consider both the good and bad of either choice.  Ultimately, you have to decide if the benefits of your decision of home buying versus renting outweigh the associated costs, whether it’s a matter of finance or convenience.

This is your home buying guide in Bryan-College Station.

 

Good Home Buying Tips

Welcome to the home buying market! This is an exciting time to be purchasing a home, with an array of new homes coming onto the market these is some excellent value to be found. All it takes is a little time and effort in looking and you can find your dream home for a dream price. But you should always be a smart buyer. There are those out there that will take advantage of someone who is eager to buy so, if you do your homework; the deals will follow.
The first thing you should do is get your finances in order. This involves finding out your credit score, fixing any outstanding issues affecting your credit, ensuring that these are properly released from your report, and finally securing your mortgage before you start looking. When I say secure your finances I do mean being pre-approved fully, this is different from a pre-qualification in that a pre-qualification does not "secure" you any amount of money, it is simply a judgment of whether or not you qualify to receive a mortgage.
Next, start working with a realtor that knows the area you are looking to buy in. This is a huge step so be prepared to move from merely wanting a home, to actively looking for one. Sit down with your realtor and make a list of things you require in a home. This is a list of those things that you can absolutely not be without. Once this is compiled, then list the things that you would like. With these lists ready, its time to start looking at homes. Your realtor should be able to provide you with a complete list of homes that fit your criteria, and some that come close. Also, they will be able to guide you to properties that fit your pre-approved mortgage amount.
After finding a home or homes for sale college station tx that suit you make sure to have a certified inspector take a thorough look through the home. Have them check all questionable areas of the home. Don't forget to have the inspector check for mold as this is something that is often overlooked. If the home passes the inspection than carry on with the offer if you are so inclined. If it doesn't then either continue shopping, or utilize the necessary repairs as a bargaining point. Usually you should be able to have the cost of these repairs deducted from the cost of the home. Its a good idea to bring in your own contractor or expert to get these estimates. By doing this you know that everything is above board.
Buying a home is a huge process and one that you must be careful to handle with all due care and attention. Such an important investment can benefit you financially for years to come as well as providing safety and financial security. Don't sell yourself short on what you buy as your home. After all, your family deserves the best don't they?
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Some Things To Remember When Selling Your Home

If you look at any information on homes for sale bryan tx, one trend that continues to emerge is the necessity for proper advertising and exposure for homes. But, without a real estate agent and their typically large advertising budget, how can this be accomplished? Quite easily really, you just need to think creatively. Try to think like a realtor, what steps would you take in order to ensure the maximum amount of exposure for a home that you are selling? Which kinds of media would you utilize? Create yourself a plan of action that involves all of these and execute it as quickly as possible.
Now, what goes into the plan? Well, first think about where your home is going to be seen and noticed first. Most homes for sale bryan tx these days are first viewed on the internet. This being the case you may want to entertain the thought of paying for a MLS listing. This gives your home a huge amount of exposure as well as making it known to realtors and home buyers across the nation. Internet marketing is becoming more and more necessary with home sales, another great idea is to find a national  website that offers listing and list your home there. This will also increase the amount of exposure that the home gets and you can never have too much of it.

After this step, the more traditional form of home marketing come into play, such as the sign on the lawn. Don't skimp on your sign. It may not sound like much but a professional quality sign is a great attraction to buyers. You may be the home's owner but during this process you will need to be it's salesman too and this will involve a certain amount of emotional detachment from the home. This will be difficult but it is necessary. Of course, you will have your favorite aspects of the home but you will have to let viewers have the choice to develop their own favorites. Try to hold a few open houses as well. The more chances that people have to see your home, the better your chance is of selling.
Sarah Miller can help you put your property on the market.

Freedom of Self-Employment Ownership

Many Americans dream about the freedom of self-employment ownership but aren’t quite sure how to go about starting their own company and then succeeding in the world of business.  The freedom of self-employment ownership doesn’t have to be an empty dream.  There are many ways to help maximize your possibilities for success in the world of business without taking a huge financial risk.

One of the most popular ways that individuals are achieving the freedom of self-employment ownership is by a mortgage franchise with minimal investments.  Working with a mortgage franchise can help you achieve the freedom of self-employment ownership while allowing you to get the best products, the best rates, get paid better than a broker, have the buying power to be your own boss with the power and back up of a huge company, and capitalize on an established and trusted name in the world of business.  Working with a mortgage franchise with minimal investment helps you to have the security of working within a larger company framework and established and time-tested guidelines for business success without making a huge financial risk before you even open your doors for business.  

Working with a mortgage franchise helps you get a foot into the world of business by giving you ties to established client bases, marketing and training strategies, business practices, and many other necessary tools for financial success.  Combining forces with an established mortgage company by working as a franchise can’t guarantee you success in the world of business, but it can give you a good start and a better chance of succeeding by mentoring you along the way in established successful business practices.  Working with a mortgage franchise can help you achieve that dream of having the freedom of self-employment ownership without having to worry about investing everything you have into a company just starting out.  Mortgage franchises with minimal investments can help to give you the tools necessary to creating a successful company and having the freedom of self-employment ownership while still having the safety net and help of an established company to help you make it good in the world of business.

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Four Reasons To Offer Seller Financing

An example of seller financing: Years ago I bought a rental property, and nine months later sold it for 15% more, without fixing or improving a thing. The easy terms are what sold it. I took $1000 down, and I still get a payment every month, with 9% interest.

Four Reasons To Offer Seller Financing

 1. To get a higher price. As you can see from the example above, buyers pay for easy terms. From the buyers perspective, he gets a place for almost nothing, that the renters will pay for. He comes out okay even if he later sold it for less than he bought it for.

 2. To get a decent return on your money. The 9% I'm getting is nice, but the true return was much higher, since I also sold the property for 15% more than I paid, and I get 9% on the entire balance. In fact, for a great return without the headaches of being a landlord, you can simply buy low for cash and sell high with terms.

 3. To sell faster. Anytime you expand the potential market for a property, you increase the odds of selling it fast. Selling with easy terms definitely invites more buyers to look at your real estate.

 4. To sell difficult properties. If you have a property that is difficult to finance conventionally, offering seller financing may be the only way get it sold, and at a fair price.

Of course the ways you can sell are limited by mortgages and other loans. I owned the rental free and clear, which meant I could sell it any way I wanted. There are other ways to use seller financing though, even if you owe on the property. There are ways to do this safely too. Those topics are for another article.

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