Closing Costs When Purchasing A Home

General Faizal Garasia 17 Jan

It is a financial strain when you buy a home with a huge down payment. This might lead to problems if you forget the cash you will need for closing.

Closing Costs When Purchasing A Home

Everyone looking to buy a home wonders what the average closing costs will be. It is natural to wonder, considering how much the closing costs can be if you are not careful. The truth is, the costs aren’t that much, given the amount of the home. But they can cause problems because they are usually paid right away and in cash. Typically, they add to the down payment amount and can cause cash flow problems for buyers.

Closing are not easy

As you might know, closings are not easy to quote. Closings in one state differ from another as they involve different things and costs. Closing costs related to things like points and property taxes depend on the particular deal and geographic location. For example, some states do not collect property taxes. This means they don’t collect a deposit at closing. Generally, you should take these figures with reservations, just use it as a guideline.

Most lenders roll the majority of closing costs into the payment plan for the loan to protect their investment in you. For example, the lender will ask you to pay a deposit to one of their accounts for future property taxes and such. If you are lucky, some creative lenders will roll these costs to the loan given to you.

No Point,No Fee Home Loan

The average total closing costs for a $180,000 mortgage amounted to between $2,000 and $10,000. The numbers have risen quite a bit over the past couple of years as of 2003. This figure is actually an ambiguous calculation of costs ranging from appraisals to fees and taxes. Do not assume that these figures will apply to your specific situation when you go into a real estate transaction. To know exactly what is coming and the amount of cash you need on hand, get a clear written statement of all costs.

There is one way to attack closing costs if you are buying a home. You can go for a no point, no fee home loan. Most of the expenses charged to a buyer are going to disappear assuming you can find a lender. You have to get the loan, of course!

It is a good sign when you are wondering about the closing costs when purchasing a home. This means that you are properly thinking the process through. That being said, you shouldn’t rely on anything you read on the web, including this page. Get the actual terms from your lender and an escrow company. Hiring a certified mortgage broker is an excellent option if you have less than stellar credit. They know how to beat down the costs in your favor and they can also give you a solid estimate based on their experience and the lender being used.

Climbing The Equity Ladder

General Faizal Garasia 17 Jan

Congratulations if you currently find yourself in the enviable position of looking to buy a second property. The equity that you stand to gain from this purchase can be considerable. Remember to plan properly to maximize your gain. Deciding what the second home will be utilized for is the first step in this process. Is it a vacation home? Or maybe a long or short-term rental? Either way, the more detailed you are about your forward planning, the smoother the process will be.

As a source of revenue

There are certain steps that you should take to ensure the home will bring in as much money as possible if you are looking at this purchase as a source of revenue. This will allow you to pay off the mortgage quickly. For this kind of investment, the cleaner the better. Nice homes are in high demand, and they bring in a good monthly rate. Enough for the mortgage payment to be made easily with cash to spare. Also, ask yourself if you are ready to be a landlord. This will involve the task of finding and maintaining good tenants, and doing what’s right for you and your property, not what’s right for the renters. Land lording might not be for you if you have the tendency to be “too nice”.

Be sure to cover all the bases no matter what your property is intended for. You should be as diligent as you were when buying your first home. You will be able to apply the lessons you learned during that process on the new home, and avoid the mistakes or areas of stress that were present in the first purchase. Most people buy a second house and then find themselves buying another. It is kind of hard to stop once you start to climb the equity ladder!

Clean Home, Easy Sale

General Faizal Garasia 17 Jan

The process of preparing it for sale is one of the biggest problems people run into when selling their home. Most homes are simply places where we keep accumulated treasures over the years. Are you a clutter-bug, a hoarder? That’s fine, we all are to some degree. We need to be mindful of our “stuff” when preparing a home for sale. Taking a quick walk through your home is the best way to begin this process. Make a list of everything that you have not used in the past 3 to 6 months. Now here is the hard part. Get rid of it. Does it seem a bit extreme? It might be, but you won’t likely be using things that you have not used in half a year in the future. Remember, we are trying to get rid of some stuff so that people can see the house, not the things in it.

Belongings in the house:

There is a common mindset that home buyers want to see the “personality” of the homes current owners. This is not true. Buyers want to be able to see their personal things in the home. They want to put their personality in the home to check if they could see themselves living there. Accumulation of your stuff will get in their way of doing this. Go through every room and remove the clutter! This includes closets, shelves, and cupboards. You should also, remove excess furniture if the room seems too crowded. Another important thing to remember, don’t put all the stuff in the garage! Buyers will go through the garage just like any other room in your home. You can hire a storage locker if it is really necessary. Aside from that, use this as an opportunity to rid yourself of the things that you never use.

A good thing to utilize when showing your home is the minimalist approach. The lack of personal effects makes it easier for buyers to place themselves in your home. Also, this will make the moving process easier on you. With fewer things to pack when moving day comes, you can allot more time to creating your perfect space in your new home.

Contracts When Selling Your Home Without An Agent

General Faizal Garasia 17 Jan

Approximately 30 percent of homeowners intend to sell without a real estate agent, a recent survey revealed. iIf they didn’t fear the contract side of the process, I bet more would.

Contracts When Selling Your Home Without An Agent

It is undeniable that you can save a lot by selling your home without an agent. Typical commission fees charged by an agent is six percent of the sale price. The fee of a real estate agent on a $300,000 home equates to $18,000 dollars. That is like leaving money on a table.

Why don’t more people do it if a seller can save more money by foregoing an agent? Simply put, they are afraid of the process. Real estate contracts can be a scary issue for most homebuyers in particular. How would you know if you are doing it correctly? What if you do it wrong? Are you going to lose the home, will there be lawsuits? Frankly, many people have nightmares about the idea of dealing with these issues. This doesn’t need to be like this.

First of all, most real estate agents do not know more than you do about contracts. They are not legal experts but are in the business of selling real estate. Furthermore, most real estate contracts are of the pre-printed form variety. All in all, you do not need to be overly concerned with this issue. Of course, it isn’t my property.