financing: Is a friend your best choice for your agent?
- 08/11/24 04:34 PM
In the realm of real estate transactions, the decision to engage a friend who also happens to be an agent may seem like a tenuous situation and may cause some hesitation.
Concerns about how professional relationships may impact their personal connection occasionally weighs on a person's mind, leading them to consider alternative options. It may stem from the fear that any hiccups or disagreements during the transaction may strain or even jeopardize the friendship.
It may actually be the opposite. There are many advantages to working with a professional to find your home who also happens to be your friend.
Trust: Having a … (3 comments)
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financing: Agent Representation - A Buyer's Perspective
- 08/01/24 02:16 PM
Real estate professionals offer expertise in the local market, guiding buyers toward suitable properties and negotiating favorable terms. They provide comprehensive support throughout the home buying process, managing logistics and serving as trusted advisors.
Additionally, agents have access to a network of allied professionals, streamlining the transaction and ensuring smooth coordination. They also advocate for buyers' interests, negotiating on their behalf and addressing challenges that may arise, providing peace of mind and confidence in decision-making.
The following is a list of services typically provided to a home buyer by a real estate agent but can vary depending on negotiations between … (3 comments)
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financing: The case for working with a friend and agent
- 07/16/24 02:41 PM
The familiarity and trust established in a friendship may be the ideal foundation for a successful business relationship. Having a loyal ally from their social circle adds a new level of insight and service to such an important financial decision in their lives.
When considering the choice of engaging a friend who also happens to be a real estate agent in the purchase or sale of their home, consumers are presented with a multitude of compelling reasons to embrace this option. Firstly, the pre-existing level of trust between friends lays a solid foundation for effective communication and transparency throughout the … (0 comments)
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financing: House-Hacking your way to multi-unit rentals
- 03/12/24 07:01 PM
House-hacking refers to buying a multifamily property on an owner-occupied mortgage, living in one unit and renting the others. If you're thinking about becoming a rental mogul, starting early is an advantage. Not only will you have longer to accumulate a larger portfolio, but you can also increase the leverage on the first owner-occupied acquisitions.
Leverage is the use of other people's money to finance an investment. The higher the loan-to-value, the greater the leverage which can increase the yield. The lower down payment gives the investor more leverage which can increase the return on their investment.
FHA, VA, Fannie Mae, and Freddie Mac … (1 comments)
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financing: How to Buy and Sell a Home at the Same Time (Without Losing Your Mind)
- 12/08/23 01:13 PM
How to Buy and Sell a Home at the Same Time (Without Losing Your Mind) Buying or selling a home is a big adventure; some thrill seekers may choose to take on both tasks at the same time. If you're finding yourself in the position of needing to buy and sell at the same time, here are some tips to help you navigate the possibly challenging course ahead of you.
Evaluate Your Local Market
For most buyers and sellers, selling their current home before putting an offer on another property is their best real estate option. But for others, it really … (4 comments)
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financing: There's More to it Than You Might Think
- 01/05/22 03:54 PM
There is more to selling a home than you might think. Superficially, a person might think that it will sell itself currently because, nationally, homes for sale receive 3.6 offers and they sell within 18 days.
Any business student can probably list the four Ps of marketing: product, price, place, and promotion. It may appear that there isn't much to selling a home: put a price on it; photograph it; put a sign in the yard; and, put it in MLS but, on closer scrutiny, there is a lot more that the best agents provide.
Long before the home goes … (0 comments)
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financing: Moving UP or DOWN
- 02/01/21 03:05 PM
Staying at home in 2020 caused of lot of owners to think about how nice it would be to have a larger home to accommodate the additional activities that come along with isolating. Particularly for people with children at home or possibly, the potential of either adult children or parents coming to live with them.
There are other owners who are trying to weigh the pros and cons of selling their larger home and downsizing. For entirely different reasons, the advantages could be very appealing to an owner. A smaller home is easier to maintain and usually, has lower utilities, … (1 comments)
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financing: Will Points Make a Difference
- 03/14/19 04:52 PM
Will Points Make a Difference Lenders typically quote mortgages at a market rate but can offer a lower interest rate loan if the borrower is willing to pay points up-front which is considered pre-paid interest. These points are generally tax deductible for the year paid when the borrower pays them in connection with buying, building or improving their principal residence.
A point is one-percent of the mortgage amount. A lender will quote a lower-rate mortgage with a certain number of points. There is not a standard amount; it is an individual company policy.
A simple comparison of the two alternatives based on the borrower's … (0 comments)
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financing: Assumptions are an Alternative
- 07/19/17 05:22 PM
Assumptions are an Alternative
In the late 80’s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate.
Based on projections by Fannie Mae, Freddie Mac, the MBA and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates … (1 comments)
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financing: Down Payment - Are You Sure?
- 07/03/17 06:27 PM
There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph. Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.
Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.
Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA … (0 comments)
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financing: Would-be Buyers with Student Debt
- 05/22/17 05:43 PM
59% of non-owners are not comfortable taking on a mortgage with their student debt according to the Aspiring Home Buyers 2017 survey. It is estimated that the college graduates have an average of $37,172 in student debt.
Fannie Mae, who has loan programs with as little as three to five percent down payments, has announced changes to how student loan debt is treated that could make the difference in qualifying for a mortgage.
For the 5 million borrowers who participate in the reduced payment plans, actual payments are considered for calculating debt-to-income ratio rather than maximum payment amount.
Non-mortgage debts paid by another party for … (5 comments)
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financing: Leverage - A Maximum Advantage
- 03/10/16 05:52 AM
Leverage gives the user a maximum advantage whether it is physically lifting a large object or rapidly building equity in a home. In the case of the home, the high loan-to-value mortgage allows the profits made to be greater than simply the cash invested.
A $250,000 home can be purchased on a FHA loan with a 3.5% down payment of $8,750. If the home appreciates at 2% a year, in seven years the equity will grow to $75,920 due to the appreciation and the amortization of the mortgage. That would be a remarkable 36.2% rate of return.
It is estimated that homeowners have … (0 comments)
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financing: Verify with Your Lender
- 11/25/14 10:58 PM
Verify with Your Lender - 11/24/2014 If you have a mortgage with an escrow account to pay your property taxes and insurance, you expect the company servicing your loan to pay this year’s taxes this year so that you can deduct them on your 2014 income tax return. After all, your monthly payment includes 1/12 the annual amount so there will be money available for them to be paid on time.
IRS requires that expenses must actually be paid in the year that a deduction is to be taken.
The predicament occurs when you’ve made your payments but the mortgage company didn’t … (1 comments)
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financing: Indecision Costs By Making the Wrong Decision
- 08/01/14 11:42 AM
Indecision Costs - 7/21/2014
More money has been lost to indecision than was ever lost to making the wrong decision. The economy and the housing market have caused some people to take a “wait and see” position that could cost them in lost opportunities as well as almost certain higher costs in the future.
To illustrate what the opportunity cost might be, let’s compare what the value of the down payment two years from now would be if it was invested in a certificate of deposit, the stock market or used to purchase a home today.
A 3.5% down payment on a … (1 comments)
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financing: The Question Every Cash Buyer Should Answer
- 05/02/14 09:50 AM
The Question Every Cash Buyer Should Answer
Paying cash for a home seems like a huge advantage to qualifying for a mortgage and an appraisal. However, for the fortunate few who don’t need a mortgage, there is a question they should answer before they make that decision: Do you think at any point in the future, you might put a mortgage on this property?
It’s important because paying cash for a home could affect the ability to deduct the interest if the homeowner should place a mortgage on the home at a later date.
Most homeowner’s know they can deduct the … (3 comments)
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financing: Find the "Right" Agent Before the "Right" Home
- 08/26/13 06:51 AM
Find the "Right" Agent Before the "Right" Home
It’s a common practice for buyers to make a list of what they want in a home during the search process and to explain it to their agent. However, maybe the first list they should make would have the skills they want their agent to have.
The Profile of Home Buyers and Sellers identifies what buyers want most from their agents and as you’d expect, help with finding the right home was ranked highest most often. While it is important, it may not be the most unique of the desired area of expertise.
… (0 comments)
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financing: How Do You Decide whether to Add on to an Existing Home or Purchase a New One?
- 12/27/12 10:32 AM
Q: How do you decide whether to add on to an exsisting home or purchase a new one?
A: There are a few things to consider, including cost, individual needs, and what will add value down the road. Also important: your emotional attachment to the existing home.As designer and builder Philip S. Wenz, the author of Adding to a House: Planning, Design & Construction, notes, an addition is much cheaper than building a new home and can offer a “new” home without the heartache of moving. Other considerations:
Can you finance the home improvement with your own cash or will you … (0 comments)
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In the realm of real estate transactions, the decision to engage a friend who also happens to be an agent may seem like a tenuous situation and may cause some hesitation.
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