Archive for the ‘Home Buying’ Category

Important Things To Know About Buying A House

Buying a house would be an event unlike any other, and you must prepare appropriately. You shouldn’t deal with it like anything else you would have done years ago. Provided you would like to do well with purchasing a home, you ought to equip every piece of your mind for the distinctive challenges which buying a house presents.

Here are some preparatory guidelines to start you off:

— Searching online

Searching online is a critical part of the formula that anyone looking to buy a house should achieve. If you are already accustomed  to searching online, when it’s time to purchase a home, it will become force of habit.

— Getting your finances in order

The biggest misstep that a person could experience when preparing to buy a house is failing on this imperative consideration. If you decide to not consciously practice getting your finances in order, it can be tough. This is how dependent buying a house is on getting your finances in order. If you are unsure how to get your finances in order, then go on exploring because we will focus on that here!

— Looking for a real estate agent

An integral part of the discipline that is needed to buy a house involves looking for a real estate agent. When you look for a real estate agent, it primes you to be in an appropriate mindset to accomplish the utmost goal of buying a house.

We would like to investigate the progression to buying a house successfully. We will prepare you for a heightened level of success. Please consider several thoughts one would anticipate before looking to purchase a home. Before buying a house, you should figure out and verify that purchasing a home is a good fit for your life.

Prior to starting what is typically recommended to succeed, we will focus on several preparations that anyone should recognize before getting started. Besides, buying a house is a journey and you ought to prepare for a progression before taking that first step.

One of the best ways to figure out whether you will be capable to buy a house would be to evaluate the regular practices of people who already buy a house regularly. You wouldn’t need to copy their accomplishments immediately, because that would be next to impossible. Yet, you ought to be ready to put forth as much energy as they do. Emulate their practices, because they are exactly where you would like to be. Also, contemplate these questions:

Have you saved for the downpayment?

Am I prepared to cover closing costs?

Is buying a home cheaper than renting?

Those are certainly the kind of targeted questions that someone who expects to buy a house may want to reply yes to. By replying to these particular questions positively, that means that you possess the personality type that would do well in buying a house.

Buying a house involves heaps of energy invested over time. So you can see, the ideal way to get ready for buying a house would be to grant yourself the suggested amount of time for the footwork so you can succeed. Do this, and buying a house could be much easier.

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What Is A Sub-Prime Mortgage Loan

With all of the talk in the news lately about the decline of the United States economy and the real estate market many have been hearing the term “sub-prime mortgage.   But what is a sub-prime mortgage? And considering all of the negatives associated with such a mortgage product are there any benefits for someone to seek out and obtain a sub-prime mortgage?

A sub-prime mortgage is a loan to a borrower with less than perfect credit. This can happen to the borrower for many different reasons that put them in the position of needing a mortgage loan they may not otherwise be able to get.

A sub-prime borrower has either missed payments or been late on them. This forces the lender to view them as a higher risk on a new loan. They recognize they may have higher costs associated with this type of borrower so they charge a higher rate to compensate for potential losses.

Sub-prime loans can be structured in various ways. The most common loan of this type is the ARM loan. An adjustable rate mortgage can appear to the borrower as though they are getting a favorable rate at first when in reality it only starts out that way.

The major problem with this is when the loan adjusts to a higher rate many of the borrowers cannot make the payments, which causes their home to go into foreclosure. This only leads to more bad credit and financial problems for them.

Today you hear about the high foreclosure rates in America and much of it goes back to sub-prime loans. It reality the lender is partly to blame and some of them have been hit so hard they are going into bankruptcy themselves. These are usually smaller lending institutions that are having a hard time weathering the storm, however even the largest of lenders are hurting from all these bad loans.

It does not have to be all bad however. There are many benefits to both the borrower and lender on sub-prime mortgages. First of all this gives the borrower a chance to improve their credit score by making the payments on time. This can lead to you being able to qualify for a better interest rate which can be done by refinancing the sub-prime loan.

It can be good for people who have run into some bad luck financially. Things like job loss or divorce can really hurt a person’s credit, so can an unforeseen tragedy such as an illness or disaster caused by a storm. A sub-prime loan can help these people get back on their feet as well.

From the lenders point of view they charge high rates and can make high profits when sub-prime loans work out. This allows them to be part of helping a person get a new home they may not have been able to get and making a profit as well.

Hopefully this will answer your question on what a sub-prime mortgage is and if it applies to you will give you confidence to go in and apply for one yourself.

Veronica Key is a sales representative for Forest Hill Real Estate and is a waterfront Toronto condos expert. Contact Veronica and her team of professionals for information on Toronto real estate prices and to search for available properties.

Buying A Home – The Phantom Offer

After a long and exhaustive search you have finally found the house for you so you instruct your real estate agent you put in a offer for you. You are told that there are no other offers on the property so you think your chances of getting it are pretty good. But when it comes time to present your offer your are told that there is another offer and it just happens to be “better” than yours. But is it real?

Are you familiar with the term phantom offer? By the time you finish reading this article on phantom buyers and sellers, you will know a few tips and tricks to protect yourself against this false offer.

A phantom offer is an offer that really does not exist. It exists only in the mind of the person making it. While phantom offers are not common practice, you will find it more prevalent in a hot real estate market where it is easier to fall susceptible to it.

Here is a scenario of a phantom offer created by the seller themselves. You come in and make an offer on a home, and suddenly there is another offer better than yours.

In this scenario, the seller will try and drive the value of the property up to get you to increase your offer. They may go so far as to actually create a phantom buyer.

With a phantom buyer the seller will actually create an imaginary person with good credit. They will create a fake contract that includes a higher price than what you have been offering. However since you are not allowed to actually see and read the competing offers you cannot really tell if the offer is legitimate.

If they have an accomplice it might include a mortgage broker used to create an identity and credit of a real person who was not able to close on the property. All of this is all designed to drive your bid price up.

Another problem a phantom offer can present to you is more than just money. You may have to go in and eliminate some of the conditions of the contract that you were hoping to get.

For example, you may not get the closing date that you wanted. You might not get the seller to making improvements prior to closing, or have a condition on a home inspection and so on.

The thing about phantom offers is they are illegal. They are used strictly to drive the price and conditions of your offer up.

There is another scenario that a phantom buyer could be created. In this scenario, a third party can create a phantom buyer.

The sole purpose of this is to defraud the lender themselves. What happens is the seller offers a property for sale and a buyer offers to pay more than the asking price.

The settlement includes payments for unperformed services for unrecorded mortgages. The buyer takes title in the name of an individual with good credit and the seller doesn’t realize he’s been involved in a scheme to defraud the lender.

Most phantom offers involve the seller and really are trying to take advantage of you when it comes to buying their home. Always get the opinion of your real estate professional as to what to do in these cases. Their expertise will help you to not fall victim to these types of scams.

Larry Lloyd is an Ajax Realtor who specializes on the Durham Real Estate market. Feel free to contact Larry and his team when you are in the market for residential homes Durham or for any questions regarding the current real estate market.