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Sell Your House Quickly Using Seller Financing
The sad fact of the matter today is that the vast majority of real estate listings expire, and many houses go unsold. One of the key reasons for this is that there are many great houses on the market, yet not so many good buyers for them. The market for house sellers is very competitive. And anything that you can you can do to make your house more unique than your competitors will help you.
One way to make your house more unique is to offer seller financing. When you offer your house using this kind of financing your house tends to stand out from the crowd, much more than if you dont. In addition, by offering seller financing the number of potential buyers for your house goes way up. Thus, allowing you to sell your property much faster.
Also, today many sellers, in an effort to sell their property, are forced to reduce their selling price substantially. However, by offering seller financing you can usually get your asking price or very close to it. Prospective buyers of your property will pay more for premium seller financing for a variety of reasons.
One reason is that they will have less closing costs. With a traditional lender they would have to pay all of the associated points, lenders fees, and a lot of other lenders nonsense fees. But with seller financing the closing on the loan can take place in matter of days, without all the lenders reviews, committees, red tape, hassles, and paperwork.
And since you are in actuality loaning the buyers the money to purchase your house, they will be making their payments directly to you on the private note you created by using seller financing. And, if you ever tire of collecting those payments or you ever need money for an emergency or other reason. Then you can always sell that note or part of that note for a lump sum cash payment.
Indeed, to sell your house quickly in todays competitive buyers market you must have a competitive edge. There are just far too many great houses out there, and not as many good prospective buyers. Yet by offering your house with seller financing this will give you just the competitive edge that you need to sell your house quickly.
Berwyn J. Kemp is a consultant, for more information on selling your house read his special report titled How To Sell Your House Fast at: www.bkemp100.tripod.com, NOW!
Advice for First Time Home Buyers Seeking Loans
First time home buyers are faced with a lot of confusion when seeking loans. Their inexperience could lead to them taking several wrong decisions which could become disastrous in the long run. Thus it is necessary to be well-informed on how the home mortgage market operates before entering into it.
Things to consider at the onset are the interest rates. That must be one of the prime deciding factors of the person seeking a home mortgage loan for the first time. After all, it is the rate of interest that will decide the amount of payment to make every month for a long period of time. The homebuyer must take time out and compare the rates of interest of different lenders.
However a low rate of interest is not just the only thing to be considered. Every mortgage has several other fees to be paid, such as appraisal costs, application fees, lawyers fees, closing costs, etc. All these must be found out in advance so that they do not hit hard later.
One more thing to consider is how much mortgage can really be afforded. This would determine how much payment the homebuyer would be making per month. The payments should not go beyond the budget of the borrower. When all these decisions are made, only then should a meeting be scheduled with the lender. The lender would make a careful study of the borrowers credit history and then only decide how much mortgage they would give, and at what terms. This is where the borrower must decide whether the payments could be afforded or not.
Rents must not be taken as a parameter to decide how much loan payments can be afforded per month. Rents are for a short term, while mortgages tend to go on for as much as thirty years. Hence, the borrower must think on a broader perspective. Also, the person will have to pay taxes such as property taxes, which were not involved when living as a renter. Renters get several utilities for free, but the homebuyer would need to pay for them. Examples could be water, gas and electricity bills. With homes bought on mortgages, the resident would also need to conduct repairs and maintenance, which were not the responsibility while renting out a house.
An often neglected part of the mortgage is mortgage insurance. All lenders make it mandatory for borrowers to purchase mortgage insurance in case of any eventuality. If the mortgage is a high-ratio mortgage, then this amount could be very high.
So, the first time homebuyer should not just take the rent to compare with how much payments he/she could afford, but consider all other expenses as well. Only then would he/she not feel the pinch of the mortgage payments month after month.
The lender should also be sympathetic with first time homebuyers. You could find this out in the way they carry the preliminary discussions itself. If they are too highbrow to condescend to first-timers, then you are well off with another lender. Talk to them in detail about the packages they offer, and the features of the loan, so that there are no misunderstandings later. It is wisest to take copies of everything that is related to the loan.