Category: Mortgage (Page 56 of 60)

Offering or at least being willing to pay your buyer’s closing costs increases the number of potential buyers when you are selling your home – and increases your odds of selling the property more quickly.

There are a lot of home shoppers out there who are struggling to come up with down payment, moving costs and closing costs. Offering or at least being willing to help with closing costs could increase your potential buyer pool by 25 percent or more depending on your location.

Why do you want to pay for the buyer’s closing costs? Because paying your home buyer’s closing costs could mean selling your home faster and putting more money in your pocket. That’s all.

Even if you’re in an area where some buyers have plenty of cash on hand, you might find that those buyers can still be hard to please. They may not be looking for the discount that a real estate investor is seeking, but they often want to get a better deal because they know they’re stronger buyers. You’ll see this when you look at the recent comparable sales in your neighborhood.

If your neighborhood is attracting young families shopping for their first home, then the comparable sales data might show that all your neighbors are paying closing costs when they sell.

The author correctly states that there are very few absolute rules in real estate – and maximizing your net is the name of the game. It may seem unfair or it may sound counter intuitive that paying your buyer’s closing costs can increase your net, but it just might.

Source: The Washington Post

I’ve been speaking with a number of Realtors lately regarding the importance of the Pre-Qualification process and thought it might be a good idea to highlight its importance.

Many potential home buyers begin looking at homes without understanding the steps involved prior to engaging a Real Estate Professional.  It’s essentially a matter of making sure the horse is in front of the cart!

“Going shopping for a home without a pre-qualification letter is like going shopping with one of those left over Visa gift cards you find in your wallet. You have absolutely no idea if the funds left on the card will cover the purchase.”

“If you’re serious about buying a new home, show the sellers you are serious. Start off by getting pre-approved for your loan – you’re more likely to get that house you love and the rest of the transaction will go much more smoothly!”

Amy V., Realtor

In order for a real estate agent to best help you find that right home, it’s vitally important to know how much “house” you can afford.  That’s why you should reach out to the right Mortgage Professional first, before you contact an agent and start looking at houses.

Your chosen lender should sit down with you to assess your goals and objectives – and then help you choose the optimal loan program that best fits your needs. The first step in this process is the a pre-qualification or pre-approval.

Source: The Mortgage Reports

The Form or Letter

The Pre-Qualification Form was developed to provide information on the buyer’s ability to qualify for a loan without an actual loan contract. This form provides information to the Realtor regarding the ability of the borrower to obtain financing – and that way, your agent can begin the process of identifying particular areas and homes that are the right fit for you.

The form sets forth the loan amount for which the buyer can prequalify, assuming a maximum monthly housing payment.  Most importantly,  in states like Arizona, an offer on a home can’t be accepted without this Pre-Qualification Form.

Reasons Why

For all of these reasons, home sellers and their Realtors insist that home buyers submit a valid pre-approval letter along with their initial offer for the home.

Sellers don’t consider offers from people who haven’t taken the time to determine if they can even get approved for a loan in the first place.

Again, make sure to reach out to a mortgage specialist prior to going house hunting!

Two activities have stood the test of time throughout history as the best ways to make money:

1. Trading
2. Real estate investing

If you look at America’s list of millionaires and what they did to get there, you will observe the most common path to millionaire status in America has been real estate.

Sure, you have the Warren Buffetts who did it by investing in stock, and you have the Zuckerbergs and Gateses who did it by starting new companies and riding them to fortune. But most of the lower profile millionaires built their wealth with real estate.

Check this out from one of my favorite bloggers….Get Rich Slowly